The funeral insurance is an insurance policy that covers the costs for the funeral. The market offers three main types of funeral insurance that can help you plan your last goodbye freeing his family from financial responsibility for the ceremony. Then we tell about each of them for you to decide which one meets your needs and expectations.
PREPAID FUNERAL INSURANCE
This type of insurance is connected directly with a funeral service provider.
In this case, the first thing you should do is contact the supplier to agree a prepaid contract where payment of monthly installments for future delivery of products and funeral services remembers. Only the expenses of the funeral ceremony is covered in it while no other final expenditure as medical legal procedures and is not understood. A prepaid insurance contract agreed directly with a funeral cover the burial plot, flowers, casket or urn, headstone, cremation or burial, transfer, among other services.
This plan can be in one payment or do it in several years depending on their means while the funeral director will be named as beneficiary for the proceeds to be allocated to the service provider. However, this is not possible in all states so it is essential information if the beneficiary will be the funeral director or a trusted person.
The funeral insurance does not expire so once you have finished paying continue in force until the death of the insured occurs. Depending on your funeral service provider, prepaid funeral insurance can greatly benefit you to set the current contract protecting against inflation. However, this does not happen in all cases. Learn about the conditions established by the funeral provider to the stability of their values over time.
INSURANCE FINAL EXPENSE
The final expense insurance contracts directly with an insurance company and allows you to name anyone as beneficiary of your trust.
Depending on your needs, life insurance is designed either to remain in force until the death of the insured or occurring a specified period of time after which their validity expires can be established. Unlike prepaid insurance, this type of insurance offers more flexibility because you can choose and change funeral service provider at any time. However, this is not the only advantage. This insurance may cover other final expenses under this last farewell, plus own funeral expenses, for example, legal fees, taxes and medical expenses.
The final expense insurance usually have lower values than prepaid insurance and have health requirements easier to fulfill paying the death benefit to the beneficiary designated to cover existing funeral expenses and other final expenses. In this sense, the value of this insurance mainly depend on four factors. On the one hand, the state of health of the insured and that must be answered medical questions that could increase their costs if they detect serious health problems. On the other hand, this fee will increase in those who have a higher risk of death due to work or activity performed. Age also has an important role because the younger the person buying an insurance policy, the quota has less value. Finally, this price will depend on the services and products you want to include for your funeral ceremony.
PREPAID FUNERAL TRUST
A trust that owns the funds to pay his funeral until his death created.
Anyone, regardless of age or health, you can set a prepayment trust. These funds are then paid to the funeral provider that you have designated in the contract relieving family of financial responsibility for his farewell. In this case, like insurance prepaid, it is important to establish a guarantee on price stability since, otherwise, it is possible that the money you put in the trust does not cover all funeral expenses in the future.
This money should be deposited in a bank until his death and then allocate this money to pay for their funeral services. In this sense, we can distinguish two types of prepaid trust. On the one hand, the revocable trust that allows the bank to withdraw money at any time if you have decided to change his mind. On the other hand, the irrevocable trust that cannot be withdrawn from the bank account until death occurs. The prepaid trust not in force in all countries so we suggest you find out what the specific regulation of their place of residence.
Planning for the funeral and choosing the best insurance you should be done carefully so that this difficult event is easier to bear by the family. For this, the market offers a variety of funeral insurance so you need to learn about each of their services and then choose the one they consider most appropriate to their needs.