Protecting your family from costs incurred when you die can have many benefits. It will allow a set amount of money paid towards the cost of your funeral expenses. However, are these polices worth the money that you end up paying?
Burial insurance plans can give you peace of mind. You know all your funeral expenses are paid and this can ease the burden on your family. After all funerals are not cheap. Have you checked out the cost of a funeral? The funeral will need paying, and releasing the burden of the financial strain on your family might seem like the right thing to do.
It can allow you to pre-order what you would like to happen and the money allocated to this expense is already there in the plan. It can reduce the amount of details that your family will need to manage.
The cost of the plans will vary depending on your age, the amount you require and the company offering the policy. Some plans will allow you to save without needing to fill out any medical history and the policy will pay out in full after a full year of payments, if the person dies before this, then only a percentage of policy is paid.
You do need to consider the amount of money that you could potentially pay into a burial policy and the amount of money that your family will receive. Sometimes you can pay in more than you get back; caution is required as to the policy you take out.
It is possible to save up this money each month with the sole reason to pay for funeral expenses. This could be the way forward if you are just looking for a lump sum payment.
There are other options where you can actually pre-pay for your funeral with the funeral home. This is a great way to save money because you often get prices set at the time of the policy, and as you know, the increase of inflation can mean that the cost of the funeral can increase, but if you have set it at today’s rate you could save money.
But you are taking a risk with a company still being in business when you die; with the current rate of businesses that are going out of business this could be a risk that you don’t wish to take. There are going to be no guarantees with a small local company; if you are thinking about a funeral plan then looking at the larger companies that are national might be more beneficial for your needs and the reduced risk of the business closing.
It will depend upon your own circumstances as to what option is going to be worth investing in to meet your own needs. If you have sufficient money saved for funeral expenses then you might not need to take out a plan, this could save you money long term. However, it is always a good idea to get paid independent advice, because you know that you are not going to be recommended a product where the advisor gets commission for selling the product.