The Pros and Cons of Funeral Insurance

One type of insurance that is now commonly being purchased is funeral insuranceFuneral insurance was designed to allow people to prepare for their death by ensuring that their funeral will be paid for.  Many people choose to purchase funeral insurance in order to alleviate any type of financial burdens that may be placed on their family and friends upon their death.

Although there are different funeral insurance plans, just like there are different car insurance plans and life insurance plans, the types of costs that are typically covered by funeral insurance policies, also referred to as burial insurance policies, include the cost of the funeral services themselves (including the flowers and the music), the cost of cremation and/or burial, the cost of your tombstone, and the cost of the burial plot.  In some cases, even taxes and medical costs are covered by funeral insurance policies.

As with all insurance policies, it is essential to take into consideration what kind of policy you want.  Specifically, it is important to consider the kind of funeral you want to have and the costs associated with your desired funeral.  As with most services and events, the cost of a funeral can vary significantly from person to person and place to place.

The most common reason that people choose to purchase a funeral insurance policy is not because they are morbidly thinking about death or planning their end, but because they want to ensure that their passing does not create financial and/or emotional burdens for their loved ones.  Really thinking about and planning for your future and inevitable death can help to lessen the burden and allow your loved ones to celebrate your life rather than mourn your death.

Specifically, when you purchase a funeral insurance policy, you have the ability to plan the types of things you would like to pay for and even the specific types of think that you would like to happen.  Funeral insurance policies do not just allow you to ensure that your funeral costs are all paid for, but also allow you to make plans and choices so your loved ones do not have to make those choices during their time of grieving.  For example, as part of your funeral insurance policy you can set up the location of your funeral, pick out and purchase a casket, choose the burial site, and choose your own tombstone.  Like all types of insurance policies, however, there are some downfalls.  Some funeral insurance policies have restrictions regarding how much money is paid out and how soon the money can be paid out.  In fact, some burial insurance policies have a waiting period before any money can be given.  Additionally, some insurance policies may either increase or decrease in value as time goes on, potentially resulting in less coverage than desired or expected.  Moreover, insurance is always a game of odds – you are hedging your bets with the hopes that you will not pay more into the insurance plan than your funeral costs.  But, as is always the case, sometimes you do end up paying more money than will be spent on the cost of your funeral.

Although there are seemingly numerous benefits to purchasing burial insurance, it is possible that you will not get as much out of your funeral insurance policy as you anticipate or desire.  As a result, if you have the money available it is suggested that you also look into other potential alternatives like setting up a funeral trust or including provisions for your funeral arrangements and costs in your will.