There are many types of insurance available that pay out upon your death. Many people have life insurance in order to care for their family after they pass. However, when considering insurance, many people don't think about their final expenses. Purchasing funeral insurance will not only help you pay for your funeral costs, but it also allows you to take away your family's burden, by planning your own funeral.
Funerals are expensive
According to the National Funeral Directors Association, the median price for a funeral is $7,200 and a cremation costs approximately $6,100. There are ways to reduce these costs, but many people find it difficult to cut costs on the funeral for a loved one. Many people pay for this expense out of the life insurance proceeds. So, if you have a $10,000 life insurance policy, most of that policy will go towards paying funeral expenses.
Funeral insurance is a type of life insurance. With this policy, the funeral home is named as the beneficiary. So, you get to select the funeral home that will handle your burial. Since you are preplanning the funeral you can determine how to spend the money.
Make Your Own Arrangements
Funeral insurance is generally sold by a funeral home. When setting up the policy, you can make arrangements for your funeral. You would work with the funeral director who can help you determine the cost of your burial or cremation so that the policy covers all costs.
While planning your funeral may seem ghoulish to some, it allows you to make decisions that might be painful for your family. Family members might have different ideas about which cremation urn to choose or which color to choose for the casket. Since you would have made these decisions beforehand, you will take away some of the stressful decisions your family would have to make.
Make It Easier For Your Family
A funeral insurance policy names the funeral home as the beneficiary. So, upon your death, the funeral home has access to the funds. Since you would have made the arrangement already, your family does not have to worry about these details in their time of mourning.
Arranging a funeral can be stressful, especially if the death was unexpected. If you have funeral insurance, the funeral director will be able to begin making the arrangements as soon as they are notified of your death. By having everything prearranged your family will have one less thing to worry about.
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