What is a Prepaid Funeral Insurance?
Prepaid funeral insurance is funeral insurance providing cash in lump sum to the nominated person or to your family to cover the funeral expenses in case of your death. This insurance is tailored aiming to reduce the financial burden of a family at an emotional time. In fact, losing a family member is a difficult and painful time, while the stress is magnified by financial pressures of covering funeral costs, besides dealing with loved ones loss.
How does it Work?
Funeral insurance works identically same as your other insurance policies. You buy a fixed coverage to cover your funeral expenses from a provider and it asks a certain amount of money to be paid each month. The beneficiary nominated receives the money on your death to be used for the funeral expenses. This can be done regardless of the age or health factor. This is a prepaid funeral plan that can be spread over 3 to 5 or 10 years or as a single premium. The fact is that most claims of this insurance are received within 24 hours once the essential documentation is received by them.
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How Much it Covers and Premium:
Pre-paid funeral insurance offers up to $50,000 for the expenses related to funeral. On coverage of $20,000 or more, you get a premium discount of 10% and this is applicable worldwide 365 days and 24 hours a day. In fact, the coverage level offers you peace of mind as it increases with each year. The premium will depend on various factors such as your age, coverage amount, payment methods and schedule etc. But you can expect to pay less than $10 a month for a $10,000 coverage which is the average funeral expense in the USA.
Funeral insurance provides a way to plan in advance and to cover funeral costs. There are different plans covering different costs and some cover things such as cremation costs or grave digging costs, burial fees, while other insurance plans offer tiered levels of coverage. Generally, the policies do not cover everything, so read the small prints carefully prior to buying the insurance policy. The funeral insurance cost is based on the coverage level you choose, your age and gender.
Is Prepaid Funeral Insurance Worth It?
The insurance companies on prepaid funeral offer affordable prepay coverage. The advantage is that the premiums never go up in such insurance policies and there is also the advantage of saving up to 25% on the life of the policy. The premiums are lower and the payout for the funeral covers is quick. There is flexible cover indicating the payout choice.