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Funeral insurance is becoming an increasingly popular form of cover to take out. For the nominal amount every month you can have the cost of organizing your funeral taken care of. Funeral insurance providers tout this as a good way of handling the event of bereavement since death is an emotional event and the organization of a funeral can be a strain to all involved. Funeral insurance can take care of all the fine detail of your funeral. The cask, the flowers, the service and every aspect in between is covered by funeral insurance. Funerals have been increasing in cost in the past decade with the average funeral going up by 90% in that time.
Who is a potential candidate for funeral insurance?
Funerals are an inevitable event and there are two schools of thought, you'll be dead so you don't have to worry about it or you want to make the event as easy as possible for your loved ones. A life insurance policy is a payout in the event of death and the money from that can be used on funeral expenses, however, many people choose get a separate policy specifically for the funeral as you will have preplanned and prepaid your funeral. In essence, anyone can have funeral insurance but if you need funeral insurance is completely up to you.
What typically does a funeral insurance policy cover?
Funeral insurance can be as detailed or as basic as you like. A basic burial policy will only cover the basic costs of a funeral such as a casket, however, may not include a service, flowers, car transportation or any of those smaller details that you wouldn't have considered. it's worth knowing that even a basic funeral can start at around $8,000 (2008 figure). You will also need to pay for a celebrant (funeral director) and if you are burying your loved one then you'll need to pay for a plot fee from the cemetary. You will also get a fee if you elect cremation and the fee associated wtih a plaque or permanent memorial.
Any policy above a basic policy will cover all the above items and also include essentials like embalming and labor for all the people in the funeral process as well. If you are expecting to receive an inheritance and expect this to cover the cost of a funeral, be aware that it can take quite a while to process. It is not uncommon to wait many months before the taxes are finalised . In these situations where cash flow is tight, a funeral insurance policy can act as a buffer to cover your upfront costs.
What typically does a funeral insurance policy not cover?
Check that your policy is adjusted for inflation over time as you will not want to be caught short at the time. Also check that it covers transportation costs as in some policies this is an optional extra. Check that the policy covers things like burial and fees payable to the cemetery as these can range in the many thousands of dollars.
Additional coverage that policy holders might take out in this area
Funeral insurance only covers the costs associated with the funeral. Many people also take out a life insurance policy as this policy will cover your family in case of death.
Additional coverage for a funeral insurance policy
The list of possible inclusions is vast and you can be as elaborate as you wish with your funeral insurance policy. You can get any extra you wish for your funeral as ultimately you will pay for it in its entirety.
What will funeral insurance typically cost?
A funeral insurance policy is not an assessment based on risk. It is a certain event. You don't pay a premium to cover the chance of the funeral. You know and the insurance company knows that the funeral is going to happen so you basically prepay it. The amount you prepay reflects the cost of the funeral you choose to have. This will cost thousands of dollars, how many thousand is up to you.
Free Funeral Insurance Quote
- Your first 3 months premium free.
- 10% discount for couples
- One of the lowest prices on the market
- Guaranteed cover up to age 80
- Up to $30,000 worth of cover
- Efficient support and processing. Our xLife advisors step you through and finalise your cover over the phone, eliminating further paperwork and consultation.
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