Funeral insurance provides a way for your loved ones to cover funeral costs without dipping into their savings accounts. It may appeal to you for multiple reasons – your age, your budget, enrollment process, and/or the amount you want to leave behind.
What Can I Get From Funeral Insurance?
With funeral insurance, you’re enrolling in a policy in which your loved ones get a tax-free lump sum upon your death. You can name any beneficiary, but individuals typically name loved ones as beneficiaries, specifically those responsible for covering funeral costs.
How Can Age And Health Make Funeral Insurance More Ideal Than Other Options?
Most people can qualify for funeral insurance – even those who have trouble getting coverage from other life insurance policies.
Those purchasing funeral insurance are typically at a stage in life where funeral planning must be done sooner than later. It’s never an easy process and requires acknowledging that life does not last forever. That’s part of why companies allow individuals to enroll up until the age of 80.
Individuals in poor health are also ideal because severe conditions aren’t an obstacle for enrollment. Health also doesn’t have the same severe impact on premiums as it does with other forms of life insurance.
How Much Does Funeral Insurance Cost?
Costs vary depending on the type of policy purchased and the policyholder’s circumstances.
Funeral insurance comes in two forms – simplified issue and guaranteed issue. Simplified issue requires minimal medical underwriting, as it only involves a medical questionnaire as part of the process. Guaranteed issue doesn’t require any medical underwriting.
If you’re younger with moderate health conditions, simplified issue is better since you’ll have more favorable responses to the medical questionnaire. Your premiums will be lower, and you’ll be able to get a higher death benefit.
If you’re older and/or have a severe condition, guaranteed issue is better. Premiums will be larger, and the death benefit will be smaller.
How Much Can My Loved Ones Get?
Funeral insurance offers a death benefit ranging between $5,000 and $50,000. While this is lower than other types of life insurance, this is also why premiums are lower, and it reflects the policy’s common use.
Many will purchase just enough to cover funeral costs. You can calculate this during the funeral planning process. Funerals costs between $5,000 and $10,000. Funeral arrangements and the funeral home itself will determine the exact rate.
However, your loved ones can use the death benefit for any purpose. You may even choose to get a higher death benefit so that they can cover the funeral in addition to personal expenses.
Get The Best Policy Today
At Fidusure, we want you to have a policy that fits you and your loved ones. Call us today at (647) 567-4702 to learn more about funeral insurance.