The Cost of Funeral Expenses Insurance Plans
Funeral expenses policies are affordable plans that can be purchased through a variety of online and offline sources. The amount you pay every month towards premiums for this type of insurance plan will largely depend on three factors.
- the first factor is your age
- the second factor is your health
- the third factor is the benefits you get
Young adults who do not smoke and have one pr-existing health conditions may be asked to pay as less as $8 a month towards the insurance plan. This means that, if you are in good physical shape then funeral insurance may cost you as less as having a cup of coffee with a friend in a cafe.
Older adults who have pre-existing health conditions such as diabetes, heart problems or any other serious health problems will be asked to pay more towards premiums. This means that if your health is not as good as it used to be or if you are a young adult who smokes then funeral expenses insurance may cost you as much as having a meal with a friend in a restaurant.
The Real Cost of Funeral Insurance
Although paying $8 – $15 a month for funeral insurance may seem expensive now; if your family ever files a claim for funeral expenses insurance; then that would mean that the policy you had purchased 5 years – 15 years ago would have paid for itself. The real cost of funeral expenses policies is the amount of benefit your family can get when they file a claim.
5 Ways to Save on Funeral Insurance
- To opt for a smaller cover amount such as $10,000 instead of $20,000. – Opting for a smaller cover limit will help you save money immediately however; before choosing the lowest cover amount remember that the cost of living will increase as time passes and $10,000 may not be adequate for your family after 10 years.
- To opt for a policy without an accidental death benefit. – The accidental death benefit costs a few dollars more; however this benefit can ensure that your family gets a double compensation payment. This means that if the chosen compensation amount is $15,000 hen with the accidental death benefit your family can get up to $30,000 towards compensation for funeral insurance. Certain terms and conditions may apply to additional benefits such as the accidental death benefit.
- To pay premiums in advance every year to the insurer you have selected. – To encourage policy holders to pay premiums on time, some insurers offer a premium payment discount which entitles policy holders to receive a discount on the premiums paid provided the policy is paid for every year in advance. Depending on the selected insurer, you may be given the option to pay these premiums online, via the phone or through bank transfers.
- To take a good life insurance, TPD or Income Protection plan from a reputed insurer who offers add on funeral insurance plans for a nominal fee. – Many insurers offer a loyalty discount for buyers who purchase a second or third policy from them, while other insurers offer a special discount to buyers who purchase a combined policy from them.
- To take a few days to compare insurance plans from 3 – 5 insurers before making a final purchase. – Comparing plans can help you save up to 20% on premiums, since comparing plans allows you to understand how the selected plans work, how much the plans cost, the limitations of the plans if any and any other important terms that you should be aware of right from the beginning.
3 Reasons to Purchase Funeral Expenses Insurance Plans
- To support your family even when you are no longer there to offer monetary support. – These plans will pay a lump sum payment in the event of your natural death or accidental death.
- To enjoy peace of mind knowing that your beneficiaries will get financial relief from the insurer after they file a successful claim. – Once you purchase a plan you will know that your family is backed up by the insurer and there is nothing you have to worry about.
- To ensure that your family has enough funds to arrange for a funeral for you, without having to resort to loans, borrowing money from friends or liquidating assets. – After purchasing a plan you can sit back and live your life knowing that your family won’t have to suffer financially when they are already grieving the loss of an important person in their lives.
2 Reasons Not to Purchase Funeral Expenses Policies
- If you do not believe that your family can benefit from insurance plans; even though millions are paid out by insurers every year towards successful claims. – Reputed insurers do not reject claims for no reason since they have a reputation to maintain, hence as long as your family knows the correct claims procedure, eligibility criteria and knows which documents have to be submitted while filing a claim, their claim will not be rejected. Failure to disclose information can lead to a rejected claim or a lapsed policy can lead to a rejected claim, hence make sure that you pay your premiums on time and you along with your family are truthful to the insurer about any health, job or other important information.
- If you are confident that the assets you leave behind for your family will be enough for all their needs and that your family will never run short of money. – Only a few people in every country are financially stable enough to know confidently that they don’t need insurance. If you are one of these few people then you do not need insurance, but if you have dependants, if you are a working individual and if you have debts, loans, mortgages then chances are that you need insurance to protect your family financially at all times. Remember losing a loved one is not easy and facing financial problems at the same time can make bad things seem a lot worse.