The costs of a funeral can be quite a shock for a grieving family right after the death of a loved one. That’s why it is understandable why most people like to take out funeral insurance to pay for all final rites or a part of them. With help of funeral insurance, your family doesn’t need to borrow money from somewhere else to pay for final expenses. This type of life insurance is one of the best ways to protect your loved ones or family from paying your funeral costs.
What is funeral insurance?
Funeral insurance is a way to pay for your final rites during your life. Buying a funeral insurance policy, you are agreed to pay a specified sum of money, and then the insurance provider covers your funeral costs when you pass away. And if you die before paying the whole sum, your loved ones may need to pay the remaining money of the funeral bill. Most insurance companies offer such plans to 50 years older people. But some policies are designed for younger people as well. Funeral insurance is a great way to ease financial stress for those left behind after your death.
5 Ways funeral insurance can benefit you and your family
Below are some of the advantages you should know about funeral insurance and how it will benefit you and your family.
Financial support
Funeral expense helps your family deal with the grief of your permanent absence instead of worrying about arranging money for your final rites. The coverage provided by the insurance company is totally tax-free and is the best way to financially protect your family. By buying a funeral insurance policy, you have taken the very first step to protecting your family from financial stress. While your family may be going through the validation process and waiting for their portions from your estate, the plan can cover almost all the expenses related to your funeral.
Avoid rising funeral costs
Funeral expenses have been rising continuously for the past 20 years. The average cost of a funeral in the United States is $5000 to $ 7000. If funeral costs are much more expensive right now, think about what they might like in years to come.
When you buy funeral insurance, the insurance provider will make sure you are guaranteed the funeral services you want. And your family will be able to perform your final rites without looking at the costs of funeral and memorial services.
You can use installment plans
Oftentimes, paying for a funeral is hard for families and can cause a financial crisis as well. But buying funeral insurance providers you the flexibility to pay for your funeral in advance even in easy installments. This is the best way to take the future stress off your family without disturbing your monthly budget as well. With help of this insurance policy, you can finance your own funeral in advance without breaking the bank. Paying insurance premiums in smaller installments makes advance funeral financing the best option to choose.
No health checks or rising premiums
Life insurance is usually hard to get when you are 80. Because of health and aging issues, life insurance is difficult for people who are 50 plus. This is where funeral insurance comes into play because there are no health checks and examinations to buy one. It is usually available for anyone. Furthermore, there are no rising premiums that help you save money on funerals as well.
Free from inheritance tax
The funeral is one of the unavoidable expenses. When you want to prepay your funeral expenses via a funeral insurance policy, you are going to manage costs without having an effect on your retirement income. The amount of money paid towards funeral insurance premiums will not be considered part of your assets. The coverage obtained from the insurance provider won’t also count as part of your estate. This will help you reduce the tax amount as a result.
Final thoughts
Death is an inevitable fact. And paying for your funeral via funeral insurance in your life is one of the best ways to keep your family from financial strain when they are dealing with the grief of your death. Prepay your money for the funeral right now and go back to spending your money on living.
