Giving your loved one a decent funeral can cost you much nowadays. Instead of grieving peacefully, you have to worry about the expenses that come with having a proper service for a loved one. Thus, many insurance companies came up with the funeral plan. Saving up for a funeral plan will help those left behind with the cost of giving you the decent funeral you deserve.
Differences between a Funeral Plan and a Life Plan
A funeral plan or funeral cover gives your loved ones the financial assurance when the time comes. This plan is paid in advance and you get involved in planning for your future funeral. This cover helps your loved ones with the expenses during your funeral such as groceries, flowers, coffin, cremation, burial ground and transportation (and more) during your funeral ceremony. Unlike life insurance, a funeral cover only offers short-term financial support to those you have left behind. It does not include payment for the debts you left and other expenses, which are not related to your funeral. A funeral cover is specifically meant for funeral expenses only. It is usually given as a lump sum during the time of claim, which can be 24 hours after your death (if the correct documentation was received by your funeral insurance company).
On the other hand, a life insurance offers long-term assistance to your loved ones left behind when you are already gone. This plan provides money that they can use to pay off your debts and assist them in their expenses at their life after your death. They are also free to choose on how they would spend the money that they will receive. Just like a funeral cover, it is also given as a lump-sum. Although in most cases, it is usually released after the funeral is done.
Inclusions in a Funeral Cover
A funeral cover is specifically meant for the expenses during a funeral. Funeral costs are rising as time goes by and having a decent funeral is the best and last thing that you could have. The coverage of a funeral plan depends on the amount that you want to invest; the more expensive your funeral plan is, the more specifics are covered. Here are some aspects, which can be covered by your funeral plan.
- Processional limousine
- Funeral flowers
- Funeral Service
- Burial / cremation
- Burial plots
Not all funeral plans cover everything in your funeral ceremony. Before buying any funeral plan, make sure to know its specifics and inclusions so you won’t leave your family paying for the rest of the expenses.
Funeral Plan for Young People and Retirees
Age is a factor that must be considered in buying a funeral plan. There are different funeral arrangements fit for retirees and young people.
Funeral plans for retirees vary significantly from those appropriate for young people. Just like any other plans, the cost of a funeral policy increases as you age. It is because older people have shorter payment time and fewer installments to pay for their premium. Funeral plan for retirees is usually more expensive than those of young clients.
For some reason many young people do not want to purchase a burial and the consequences leave the loved ones with financial trouble due to the high costs regarding a memorial service. Young people have the tendency to thing that they will have a full life, but the sad truth is that no one knows what any second holds. Buying a funeral plan even when you are still young has many advantages. Younger clients have a longer time to pay for their premium that makes installments cheaper and affordable. You can also enjoy the paid up benefit. It is when you stop paying for your premium since you have completely paid for your plan yet the policy benefits still remain. Funeral plans are also beneficial to young people especially in the event of an accident.
Remember; do not put an age on death, as it comes for young and old. A senior person can pass away due to health issues coming with age, but a healthy newborn can die due to Sudden Infant Death Syndrome. Either way, the future is unpredictable, or people should be prepared for the worst at all times.
Life Insurance with Funeral Cover or Funeral Plan Only?
Choosing the appropriate plan for you requires careful thought. Life insurance with funeral cover is better than a just a funeral plan since it has long-term benefits for your dependents. A funeral plan simply covers the expenses for your funeral ceremony. On the other hand, a life insurance with funeral cover gives your dependents funds they can use in their daily life aside from exclusive funeral funds. The benefits of a life insurance can be felt by your loved ones even months after you have left.
No matter how young you are, buying an insurance is a clever choice. Aside from being a good investment, it is also a wise way to have assurance for the future even if it is just a burial plan.