Easy to Understand Funeral Insurance Cost Breakdown

Losing a loved one is never easy. Clive Staples Lewis put it best when he said that “the death of a beloved is an amputation.” Apart from the huge emotional void it creates, death leaves you with hefty funeral expenses that are often unplanned for. Most funerals cost $9,000 on average, which puts a huge financial burden on the bereaved family.

Taking on a convenient funeral insurance cover provides the perfect safety net in the event of an unprecedented loss of a loved one. Learn more about Average Funeral Costs and how you can save cash when planning a funeral.

Choosing the best funeral insurance cover

There’s a wide variety of bespoke funeral insurance policies available today. These policies are promoted using different names such as final expense insurance and burial/funeral insurance. When selecting a policy, it’s important to choose one that suits your particular needs. Funeral policies are not designed to serve as a supplementary income channel for the bereft family members. Instead, they are exclusively aimed at covering the full burial expenses. Funeral insurance policies are often capped at around $50,000 max, a feature that differentiates them from ordinary life insurance covers.

There are two major funeral insurance options you can choose from: Guaranteed Issue and Simplified Issue policies. Here’s a brief breakdown:

  • Guaranteed issue policy provides a comprehensive cover for all individuals regardless of their medical past. This policy provides a wide range of perks. For instance, applicants don’t need to answer a huge series of health questions in order to be approved. If you’re unwilling to share your private health info with your insurance providers, then this policy might be your best option. However, the guaranteed issue policy is pricier because insurance firms will be assuming more risk.
  • Simplified issue policy requires applicants to provide accurate information about their medical history. To be approved for this policy, you ought to answer a list of health questions. Delightfully, medical exams are rarely conducted. The requirements provided by insurance companies are usually not rigorous because of the low-capped nature of funeral insurance covers. However, your policy application could be rejected if you smoke, engage in risky behaviors or possess any pre-existing medical condition.

Low-amount funeral insurance options

If you’re on a tight budget, you don’t have to buy an expensive funeral coverage – some insurance providers offer their clients low-priced policies that cost as low as $2,000. Losing someone we love can affect our emotions adversely and cloud normal judgment, causing us to overspend on funeral preparations. It’s not uncommon to find funerals that cost more than $10,000 in expenses.

To avoid spending too much cash, experts suggest that people should purchase only those things they need to avoid unnecessary expenses. In addition, it helps to conduct ample research on popular funeral homes around you. Compare their prices and choose one that’s within your budget. Cremation is remarkably cheaper than burial rites, so consider this option if you’re severely out of cash.

Although death snatches away those we cherish, we should take comfort in knowing that their memories always remain with us.