The death of a loved one is one of the most emotionally exhausting experiences many of us ever go through. While we often prefer not to think about the deaths of those we care about, it is important to be well-prepared should the unexpected occur.
What is Funeral Insurance?
Organising a funeral can be an expensive ordeal. Funeral insurance provides you and your family with peace of mind and financial security during one of the most difficult times any person has to go through.
Also known as burial insurance, it helps alleviate at least part of the stress during this difficult time. It provides your beneficiary of choice with a sum of money in the event of your death. This payment can be used to cover the wide range of expenses which can arise when planning a funeral.
Funeral insurance differs from life insurance in that it is only designed to cover funeral and burial costs. This means that premiums can be more affordable than life insurance, which offers significantly larger payouts.
Why Would I Need Funeral Insurance?
Even if you see yourself leaving behind a substantial estate, when you pass away there are immediate and pressing expenses which your loved ones will be required to shoulder. It can take weeks or even months for a deceased estate to be settled and released to benefactors. With funeral insurance, the difference is that your chosen beneficiary will receive a lump sum without delay.
Some Life Insurance policies also include a Funeral Benefit, which provides an immediate partial benefit payment to help your family cover the costs of a funeral.
Because we don't think about it often, many of us don't realise that expenses such as a casket or urn, flowers, a burial plot and grave marker can escalate very quickly. Having funds made available immediately for funeral planning will go a long way toward helping your loved ones work through the difficult months ahead.