You're loved ones would want you to have a dignified funeral – and you should be able to provide them with the financial security to do so.
There could be nothing worse than having to worry about the financial aspect of a funeral at a time when your entire world has come to a standstill. A funeral insurance policy is designed to ensure that the financial aspects of a funeral are covered and to make it that much easier for your loved ones to get through a very hard time. Many people are unaware of just how expensive a funeral can be, until the unfortunate happens. Considering these costs in advance will ensure that your family isn’t left burdened by a mountain of financial responsibility when they’re at their most vulnerable. If nothing else – a funeral insurance policy can give you and your loved ones the peace of mind that you deserve.
Like life insurance, funeral insurance is a very important policy to have particularly if you're the primary bread winner in the family and have more than one dependent. A funeral insurance policy may not even be necessary if you already have a life insurance policy as many of them cover funeral expenses either partially or fully. If you're not sure if your life insurance policy will cover funeral expenses, it’s important that you review your policy and, if this doesn’t clarify things for you, contact your insurance provider to gain some clarity on the matter. The burial plot is certainly one of the most costly things to take into consideration as is the coffin or urn, transport and venue fees. In addition, paying a minister, catering company and florist can also add up to a very costly amount that you need to be prepared for in advance.
Accidental death benefits & early payout for terminal illness
When looking for a funeral insurance policy it’s important to ensure that additional accidental death benefits and early payout for terminal illness is included. Understanding what terms and conditions surround these additional benefits is important; for instance most funeral policies will require that the policy be active for 12 – 24 months before these additional benefits will apply. As a general rule any funeral policy should be fully activated and all-inclusive and have no existing exclusions after a period of 24 months from the date of activation. An example of an exclusion would be; death prior to the 24 month stand down period from any illness or suicide and it’s important to note these. Every 12 months (which is the term of most funeral policies), your funeral insurance policy will have to be renewed and this is usually done automatically by a direct debit order. Your policy is considered to be renewed once the premiums for the 13th month are credited to the policy provider’s account.
Add your partner on your policy
If you're married it’s a good idea to add your partner as a joint owner on your policy as this will work out to be a lot cheaper and will ensure you're both taken care of. It is only your listed beneficiary or estate that will be able to make a claim so it’s wise to select at least two possible beneficiaries and update this information should it be required for whatever reason. Your beneficiary must however, be at least 16 years old and may not be a company or trustee. To make a claim they would have to provide the insurance company with your death certificate, a coroner’s report and proof of their own identity. If it is your estate that is making the claim a grant of admission will be required in addition to the aforementioned documentation. You will be required to provide the insurer with your age, weight, and height and smoker status to be quoted. You will then receive a list of cover values versus the corresponding monthly premium. For someone of about 45 years of age, that is at a healthy weight and is a non-smoker the minimum cover of $5000 will cost about $30 in premiums while maximum coverage of $25000 for the same individual will cost just under $100 in monthly premiums.
It’s also important to ensure that you make the required installments on time as failure to do so will almost always result in the immediate termination of your funeral cover and in some cases; you will lose your activation date countdown and will have to wait out another full 24-month period before the policy will become all inclusive again. It’s much safer to set up an automatic debit order so that no matter what happens your premiums will be paid on time. Most insurers will waiver premiums once the cover benefit has been totally paid for in premiums; which is one other reason that funeral cover is well worth the money. I suggest that you make sure your funeral policy has this feature, as overpayment simply makes no sense.
How to qualify for funeral insurance cover?
In the event of your death your spouse, who is likely to be a joint owner of the funeral policy should receive the funds within 48 hours of having the claim approved. To qualify for a funeral insurance policy you’ll generally have to be between the ages of 30 and 70. If you plan to travel abroad you will still be covered by your policy however, you are required to infirm your insurer if you plan on staying abroad for a period of 6 months or more during which certain restrictions will likely apply to your policy until you return home. This may be discouraging but, travel insurance should be able to cover you fully during this period of time. Funeral insurance is not the only way that one can cover the cost of a funeral; you could open up a dedicated savings account at your local bank and make regular contributions to the account, just as you would with an emergency or savings account. You could also take up a funeral trust or organize a pre-payment plan with a funeral director. As mentioned in the beginning of this article, your life insurance policy could also include funeral cover too.
