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When someone passes away, family members and other loved ones need time to mourn. The stress of planning and paying for a funeral shouldn’t add to their grief, especially if it doesn’t have to be that way.
By 2023, the average funeral costs were already around $7,848 in the United States. It’s an amount that can strain the finances of grieving families, especially when they aren’t expecting it. To help ease this burden, many turn to funeral insurance, which helps cover the costs of burials, viewings, and other funeral expenses.
With funeral-related insurance coverage, the insurance provider will pay the designated beneficiary a lump sum to cover the funeral and its related expenses should the policyholder pass away. For many families, this is crucial in helping loved ones get through a difficult time. In fact, final expense insurance offers more benefits than you might realize.
Keep reading to learn why so many in the U.S. are using this type of coverage as a way to protect their loved ones long after they’re gone.
Lots of people believe that this type of insurance only covers the cost of the actual funeral, but it can pay for much more. Funeral or end-of-life insurance covers multiple funeral-related expenses, such as:
The person you state as your policy's beneficiary will receive the money from the insurance company, which they can use to pay for your funeral. In most cases, beneficiaries can receive the insurance money in just a few days. This quick turnaround time can make a world of difference when planning a funeral service.
Note that each policy has a different list of coverage options, so pay close attention to this when looking at a potential policy.
You can insure almost anything these days, but getting coverage for your funeral might be one of the most meaningful forms of financial protection. The most obvious advantage of burial insurance is that it makes it easier for surviving loved ones to pay for funeral expenses without straining limited finances. But the right policy can offer many worthwhile benefits, including the ones below.
Like other costs, funeral expenses are increasing every year in the United States. For example, you could expect the following prices for typical funeral-related expenses in 2024:
Of course, these numbers don't include extra expenses like flowers, the death certificate, or the obituary’s media-related costs. With a funeral insurance policy, the insurer pays for your various funeral expenses so that your family can simply grieve your passing as they should.
Most insurance providers have a relatively straightforward application process. Unlike health or life insurance, funeral insurance doesn't require any underwriting. You can also easily find and apply for policies online, which makes it an especially convenient process.
Additionally, this convenience extends to your beneficiaries after your passing. Once your designated beneficiary files the claim and gets approval, the insurance company will send them a check. That way, your loved ones can have an easier time planning for your funeral, knowing where the money to pay for it is coming from.
You can customize your funeral insurance policy to better fit your budget and final wishes. By enrolling in a policy with coverage amounts for specific funeral expenses, you can even plan for your funeral and offer your family guidelines on how you wish for it to unfold. For instance, you can opt for coverage to secure a certain type of casket or a specific burial plot.
If your preferences or finances change during the life of your policy, you can update everything according to your changing needs. You can even add additional benefits that offer coverage for other services your afflicted family members might need, such as:
Perhaps the most important benefit of memorial service insurance is that it gives your loved ones much-needed comfort and peace of mind during their grieving process. The death of a loved one, whether unexpected or not, can take a serious physical and emotional toll. The last thing your family members need during this difficult time is to struggle with finances.
Around 40% of Americans can't afford unexpected expenses of $400 or more. In some cases, families may have to postpone or even forgo a loved one's funeral service because of finances. By removing this stressor, you give your family a chance to properly grieve.
Inflation is a problem that never seems to go away in the United States. With inflation rates increasing every year, many wonder how much coverage they will need for their funeral insurance. Fortunately, this is one less thing you have to worry about when purchasing funeral expense coverage.
Insurance companies offering funeral coverage give you the option to lock in current funeral prices. That way, your policy will always be enough to cover the costs of your funeral, even if prices rise in the future. The benefit is especially valuable for those on fixed incomes who need protection from the ever-changing economic conditions.
Lastly, there’s the question of privacy. Getting life insurance policies may require you to undergo a medical exam, and the results of that exam can determine how much coverage you're eligible for and what premiums you'll have to pay. Funeral and cremation insurance doesn't require any of that.
To apply, you won’t have to take a medical exam. You can also choose your own premiums rather than having the results of an exam tell an insurance company how much to charge. Plus, if you have any pre-existing conditions, you can rest easy knowing that you can still qualify for burial insurance.
It's clear that funeral coverage offers plenty of worthwhile benefits, but how do you find the right policy? With so many different plans and providers out there, your search for the right coverage can feel overwhelming. End-of-life matters are stressful enough without this stress, so to find the right policy, consider the following factors and ask the right questions:
The best place to start is with an overview of your needs. Think about your current age, health, and financial situation.
Although it's not something that anyone is ready to think about, you also need to determine what you want for your funeral. Do you want a burial or cremation? Do you want your viewing and ceremony to be at a specific place?
Once you know the specifics, you can start looking for policies that offer the right type and amount of coverage.
End-of-life insurance can cover much more than your funeral service. Take a minute to think about what you want your policy to pay for.
Write out a list of what specific funeral arrangements you want. Think about other services (like grief counseling or financial planning for your loved ones).
Insurance companies offer a wide range of different policies, so you want to find one that offers exactly what you want. Then, calculate the estimated costs of these expenses so that you know how much coverage to look for.
Different providers have different premiums and coverage limits, but pricing isn't the only thing you should pay attention to. When exploring provider options, look at each company's:
Does the insurance provider have a positive reputation and solid financial backing? Finding a reputable insurance company makes the application process easier for you, but it can also make a world of difference for your loved ones when they need to file a claim.
Renowned insurance companies will pay claims within just a few days. They also won’t have claimants jump through hoops.
After analyzing your budget, start looking at policies that have affordable premiums.
You want to see what payment options the company has. For example, some allow you to pay for the policy in a single lump sum payment.
Monthly and annual payments are also an option to consider.
An insurance policy includes more than coverage limits and premium amounts—pay close attention to the fine print. What does the cancellation policy look like? How do you renew your policy if it expires?
Before signing anything, read your contracts carefully. You also want to look for any additional fees that you could be responsible for.
If you’re unsure of anything, don't hesitate to ask the insurance agent about additional costs and policies.
Some hesitate to enroll in a final expense insurance policy because they believe in the various myths about funeral insurance. In order to make an informed decision, throw out these three misconceptions:
Perhaps the most common misconception about funeral policies is that they're expensive. While any type of insurance comes with certain costs, finding the right funeral expense policy can prove highly cost-effective. You have multiple types of policies available to you, which means you can find a policy that fits your budget and offers the coverage you want.
Many believe that having an insurance policy to cover the costs of a funeral is unnecessary. Unfortunately, this can leave grieving loved ones with expensive bills that many will struggle to pay, which only adds to the challenges of this difficult time. Having a policy in place for the costs of your funeral gives loved ones peace of mind and relieves them of any financial responsibility.
Even if you're young and have your whole life ahead of you, it's never too early to start thinking about your future. Having a funeral insurance policy can put your mind at ease, knowing that you can still take care of your loved ones even if you pass unexpectedly. Additionally, funeral expenses will continue to rise, so locking in a policy early means spending less than you would if you waited.
The finality of death is a source of stress for families. However, aside from grieving the loss of their loved one, families will face the ever-increasing costs of funerals, viewings, and burial expenses. Why not take care of your loved ones even after your passing by relieving them of these financial responsibilities?
With the right funeral expense insurance, they’ll have the coverage for a burial or cremation that honors your life and helps them move through the loss. Funeral policies also have the option for add-ons that can further help your loved ones during the grieving process.
Don’t spend hours online looking for the right policy—let Insurdinary do the hard work for you to narrow the thousands of available options. We've partnered with the top insurance providers so we can provide you with affordable quotes from reputable companies. Contact us today to learn more and find your ideal funeral insurance policy!