Funeral Insurance- The What? And The How?

Funeral Insurance or Funeral Cover is a policy that helps you plan your funeral expenses beforehand. This can be a personal insurance or for anyone in the family. The most common procedure is that the insurance company asks you to provide the details of the kind of funeral you want, followed by choosing the scheme that will such cover the costs. The funeral cover is created to remove the pressure one's family might face in planning a funeral at the time of their death.

Cover Amount:

The cover amount is usually between $5000 and $30000 and depends on the person who is planning such a policy. It also differs from country to country. It is usually advised to plan for a slightly higher amount than the actual predicted cost. This extra money can later be used to pay any debts, or in cases where the extended family of the deceased needs to travel from elsewhere at such a short notice.

Procedure:

A funeral cover is one of the simplest policies and one need to fill up the form with the basic details. The insurance company doesn't need any details about the health issues of the client, even in the future, however, one should be consistent in paying the installment money. When the insurance bearer dies, payment is made within 48 hrs. Of producing the necessary evidence. The money is paid to the beneficiary mentioned at the time of insurance nomination.

How to spend the money:

Once the money has been deposited in the beneficiary's account, the money can be spent in any way they want. The insurance company isn't responsible for the money that is sent to the beneficiary. However, one should have a talk with their beneficiary stating their wishes for the funeral and trusting their judgment while organizing the funeral services.

Types of Benefits:

Certain insurance companies provide various types of benefit which covers the different aspects of the funeral.

1.Memorial Benefit: 

This amount is paid for the headstone and the amount is usually a set price. This will be paid one year after the death of the main member.

2.Repatriation Service:

This involves money to transfer the body of the deceased from the place of death to their resting place.

3.Grocery Benefit: 

A family member is paid a defined sum of money for six months after the death of the insurance bearer.

Insurance companies provide free advice via a certified adviser. The job of the adviser is to take a note of the insurance bearer's wishes and financial status and suggest the best funeral cover. The bearer should be able to pay the installments without compromising their basic lifestyle. The adviser also instructs the bearer with the entire procedure, the paperwork that needs to be filled and the installments they need to make after particular time intervals. Decisions regarding funeral cover must be taken after consultation with the family, the beneficiary and the insurance company. This will ensure that the right amount is received when the bearer dies and the funeral rites are performed without any issue.