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Things to Consider When Buying a Funeral Insurance Plan

Things to Consider When Buying a Funeral Insurance Plan

If you have begun considering covering your funeral services, then you are way ahead of many in your advance retirement plans. While most people begin their retirement planning as soon as they enter their work-life, rarely do people think about the cost involved in covering their funeral arrangements on their last journey. So if you are looking up buying a funeral insurance plan here are a few things you should be considering:

1.   Calculating Final Expenses

The first thing you should begin with is assessing the final cost of your burial services. It is probably the last event of your life with the highest single expenditure. You might think that the funeral services expenditure is just for the burial alone, however, also it incorporates expenses of all your pending transactions, which include medical bills, credit card bills, etc. You must calculate the overall cost considering all the various aspects of financial transactions that will be needed pre and post-your funeral services.

  1. Selecting Your Plan

Like every other insurance plan, funeral insurance also involves a premium amount that you have to pay at regular intervals. Mostly, it incurs monthly transactions. There are different  forms of Funeral insurance premiums, which include:

  1. Stepped Premiums: In Stepped Premiums, the cost of your cover is calculated every year depending on your age, sex, and size of the cover. At the beginning of the policy you pay less, however, the cost increases with each policy anniversary.
  2. Leveled Premiums: Level-premium insurance which is also called term life insurance is a fixed payment amount throughout the policy’s life.
  3. Capped Premiums: In Capped premium, you set the amount or an age limit and once you have reached the amount or age, you no longer have to pay and your coverage will continue.
  4. Pay Guarantee Premiums: The beneficiary you have mentioned will be paid the amount which is higher among the two: the amount of the premiums or the actual insured payment.

You can choose the best plan from the above-mentioned plan according to your suitability and monetary capacity.

  1.  Pre-need Insurance

You can always choose Pre-need insurance for your burial service. Pre-need Insurance is commonly affixed with a prepaid funeral agreement with any cremation centre. The agreement predetermines the funeral services and proceedings along with all the requirements and products. It pays the entire cost of the services to the cremation centre. In availing of the pre-need insurance, you can purchase the insurance by paying in installments or with a one-time payment. Once the installments are paid, the insurance remains for the rest of your lifetime.

4.   How to choose the best services for yourself?

It is totally a personal discretion of what plans suit you the most.  However, there are a few things that you should keep in mind before buying a plan for yourself:

  1. Does the plan have anything to support your family?
  2. Are you willing to take a medical exam as per some policy requirements?
  3. Which plan suits your monetary needs the best?

More or less all the insurance is the same, however, a few minor details make the policy distinct. So you must examine the minor details and evaluate whether or not they suit your interest.

End of article

Feature Image attribution:

Photo by Vlad Deep on Unsplash

 

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