Providing for Burial Costs with a Funeral Plan

by Allia Vidmer on June 9, 2010

A lot of people think a funeral plan policy is unnecessary. They even think the expenses for funerals can be easily met with alternative arrangements and such plans are quite frivolous. Many times loans have to provide for one`s funeral and this is not the right thing to do. If one does some research on this, he can quite easily see that these policies are imperative to give peace of mind to the loved ones and family so that they have the funds to meet funeral expenses.

One may often wonder if the funeral plan is necessary when there is a life policy that provides for the death and funeral expenses. However, an insurance policy covers only last expenses on real estate and other financial burdens like duty, tax and mortgages. They do not cover the entire costs of the deceased services and most times there are such clauses in the life policy which abstains from meeting funeral expenses. However, after all the expenses are paid there might be very little left for the burial expenses. So, it is better for one to provide their loved ones with an additional policy which can provide for burial expenses completely.

Many times the funeral plan is a guaranteed amount and cannot be refused when claimed by one`s loved ones or beneficiaries. There is, however, a trade off of higher premium payments for the holder. So, before taking a plan, ask the insurance company three very important questions. Does one need to take a medical exam for the policy? What premium amount one will have to pay at the present age and physical condition? What type of policy is it; possibly a guarantee policy?

Not everyone has a tidy amount kept aside for one`s funeral. Or when one thinks that available funds can provide for one`s funeral then it could well be a mistake. This is because the situation is usually an emergency and one cannot look for funds at the last moment. There are so many expenses for the family: Expenses of transportation of the deceased to the grave site, embalming and preparing of the remains, rental of funeral parlors, flowers and other memorials, payment to the officiating person at the service, cost of the casket, vault, etc.

Calling a funeral plan by the name burial insurance and final expense insurance is not incorrect although the provisions in each are different. Burial insurance indicates a written amount appropriate for covering an average funeral service. While final expense insurance is meant to cover all the expenses that are left behind by the deceased like credit card debts, mortgages, estate duty or taxes and any legal expenses.

One`s final analysis leads to a decision that one should get burial insurance. It is wiser to contact many insurance companies to assess what benefits there are with each and which type of plan is the most convenient one by costs or benefits. If it costs more but gives less benefits then this type of a plan is to be left out. Select a plan which meets funeral expenses and is also affordable. Perhaps, one can assess and gauge the importance of a funeral plan and why it is necessary to make one`s own provisions to ease the burdens of his loved ones.

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