Funeral Plans

Funerals are one of the few certainties in life we are all going to have to consider some time in our lives. People have many different ideas when considering or discussing funeral plans and below we have considered some of the options on how to fund these funeral plans.

How to pay for your funeral plans

Funeral Insurance plans are an affordable way to ensure you have enough money to pay for your funeral plans at the time of your passing. These policies are designed to pay the estate very quickly. Once the funeral cover claim form is completed and all the required information supplied it is normally settled within 48-72 hours. Funeral insurance plans, or funeral expenses insurance covers the life insured for accidents only in the first 12 months, following this time it is for any type of death worldwide.

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Affordable funeral plans

Taking out a life insurance policy is also generally a very affordable way of covering your intended funeral plans. Life Insurance policies generally cover people for a lot more than a funeral insurance policy and the levels of funeral cover can be as small as $20,000, up to the value of $5,000,000 worth of cover. Funeral Insurance Quotes Funeral insurance quotes and life insurance quotes differ between life insurance companies, so make sure you do your research.

One great aspect that a number of insurers have built into their life insurance policies is a ‘funeral advancement’ or ‘funeral expenses benefit’ into the policy free of charge. How this works is when the life insured passes away there is a treating doctors report completed by the attending doctor at the time of death. This report, along with the completed claim forms is enough to have the insurer pay out this benefit.

Generally the level ranges between insurers but it is usually in the range of $10,000 to $20,000 worth of the benefit. Then once the death certificate is provided the balance of the policy is paid out to the estate or beneficiaries. This feature ensures there is enough money available to cover those instant funeral costs which are due very soon after death.

Prepayment of your funeral plans

If you have the funds available some of the funeral providers will actually allow you to pay for your funeral plans upfront. This is often a bit difficult for two reasons; firstly, can you get $10,000 or so to pay for the funeral upfront, and secondly how long will it be before you are required to use this money? It could be the case that in twenty years into the future your chosen funeral provider may no longer be in business.

Funeral Bonds

These are very similar to prepaying your funeral costs however they can accumulate annual investment bonuses and while they are very small in initial value they do add up. Generally funeral bonds are not refundable should you need the money back.

Funeral plans are never the easiest things to talk about and can often be a touchy subject at the family dinner table. Despite this, it is always best to have some type of funeral plan ready to meet your needs or that of your loved ones.

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Published: June 4, 2013

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