If you are thinking about purchasing funeral insurance then you are the type of person that should be commended because you are the type of person who is obviously concerned about others. Most people who go through the process of retirement planning do it with the goal of having enough funds to last until the end of their life.
Retirement planning, though beneficial, often however, does not consider the fact that extra funds may be required to complete a person’s affairs after they die.
People who consider this type of insurance are ahead of the game but they may be confused on which type of insurance policy to purchase. What makes the issue even more confusing is that funeral types of insurance have their own language. This short article will provide some basic information on the steps necessary to help you make the best decision.
Funeral insurance is simply a life insurance type policy that will pay for your burial, funeral, and other related expenses. It is also known as final expense insurance, burial insurance, and pre-need insurance. Each of these type of insurances are similar but there are a few differences.
Some of the things that you will want to consider before purchasing burial insurance are things such as if you actually need it, how much coverage will you need, what type of policy can you afford, where should you purchase it, and making an estimation of the amount of money that you will need for your final expenses.
The first step in your final expense insurance decision should be whether you actually need it or not. People who believe that they will not have adequate funds at life’s end to cover all final expenses might then consider it advantageous to purchase a pre-need insurance policy. Also, even if you think you that you will have enough funds to cover expenses a burial insurance policy is advantageous because it will ensure that your family receives your entire estate.
The second step before purchasing a funeral type insurance policy is to estimate your final expenses. Obviously, there will be the expense of the actual funeral but there may be other expenses including legal costs, credit card bills, medical bills, or living expenses, just to name a few. Once you have determined the approximate cost of your final expenses it then will be necessary to determine how to obtain that money.
Next, decide on which type of final expense insurance you prefer. There are different types of funeral insurance policies such as guaranteed issue policies, level benefit policies, modified benefit policies, and simplified issue policies. A reputable insurance agent or online insurance company will be able to provide you with all of the information you need so that you can make the right decision.
Finally, decide if you are able to afford the monthly payments for the insurance policy. Policy rates will vary from state to state and policy to policy. If you cannot afford to pay the quoted rate then you do have the option of reducing the cost of your funeral or reworking your funeral plan.