The Newcomer’s Guide To Funeral Insurance

by Admin ~ October 8th 2018

Nobody wants to put an additional burden on their loved ones when they depart and final expense plans are designed for the same. Topmost providers are coming up with plans designed to fulfill different needs of interested buyers. Also, there are providers offering customizing an offered plan for specific requirements of customers. Though, there are people who still don’t know much about these plans. In this blog, we are helping with all the information you will need before buying the desired funeral plan.

Coverage Offered

Funeral plans are known for covering all the expenses related to the last rites of an insured. Depending on the preference of the insured, they provide a cover for a burial or a cremation service. Usually, these plans take care of the costs of funeral products including caskets, burial vaults, cremation merchandise, urns, urn vaults, and memorial keepsakes. Also, there are plans that cover services offered by funeral homes such as wake ceremony, transportation, and embalming.

Plans Offered

The insurance industry offers a range of plans to arrange a funeral in the desired way and the buyer can choose or customized a plan accordingly. Below are the two most preferred plans among the buyers.

  • Preneed Insurance

    These are the plans offered by agents who have an association with funeral homes. One can also directly contact funeral homes to know about the services offered. Under these plans, the insured needs to pay the complete cost of a plan and they will take care of all funeral-related arrangements and expenses. The loved ones are supposed to inform the funeral home as soon as the insured passes away and they will arrange it as per the policy agreement. These plans are considered a good option if one has some savings with them as they won’t have to worry about making premiums every month.

  • Traditional Funeral

    Under these plans, the insured makes a fixed monthly premium to the insurer and they take care of all the funeral related arrangements and expenses. There are various top providers offering plans to help people free their loved ones from an additional financial burden. Interested buyers can get cheap final expense quotes by just leaving a message on the official websites of providers. Soon, the agents or representatives from different providers will contact them to offer the most suitable plans with them. They clearly explain the coverage and benefits offered in different plans and the buyer can shortlist the topmost four or five plans. Comparing those plans with their benefits and premiums, they can go with one that offers most at the best price.

Costing of Plans

The monthly premium or the total cost of a plan is decided based on various factors. Usually, cremation services are cheaper than the burial ones and are offered at more affordable premiums. A cremation service costs around $3,000 to $5000 while an ordinary funeral costs around $8,000 to $10,000. The offered cost may increase further depending on the additional products and services the insured wants to include in a plan. For cremations, there might be additional charges to scatter the remains in a specific holy river or lake. The insured may also wish a memorial ceremony to be organized after the funeral and that will further increase the monthly premium. Also, there are transportation and embalming options offered by different providers and that can be availed at their respective charges.

Comparison With Life Insurance

At times, people look at life insurance plans as an alternative for funeral plans but both are quite different from each other. The first one provides a lump sum amount to the loved ones of the insured to take care of different financial responsibilities including the funeral, medical and other essential expenses while the later one is specifically designed to take care of funeral related expenses. Usually, life insurance come with a premium more expensive than the funeral ones and everyone can’t afford them. Moreover, the applicants need to undergo a medical examination and they might be denied a plan if they are diagnosed with serious diseases.

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