Saving Your Family from the Financial Burden of Your Funeral

It cannot be denied that funerals are expensive. At a time when your family is grieving, you do not want them to worry about all the expenses of your funeral. You can spare them from the financial burden by preparing for your demise. It might sound morbid to some, but it’s a reality that everyone has to face. By preparing for your passing, you can show your family how much you really love them. Getting a funeral plan is recommended. To your advantage, buying an insurance policy or a memorial plan is often less costly when you buy it ahead of time.

funeral homeBasically, there are two types of products you can use to prepare for the financial burden of your funeral. These products are available from various providers. Choose from which products suit your needs and budget best. Also, make sure that you choose a service provider that will render the services or provide benefits as promised even when you are no longer around.

Memorial Plan

A memorial plan is something that you purchase from a memorial home. It is a contract where the service provider is supposed to render the services chosen and paid for by the planholder. This usually includes the viewing, the interment, the documentation, and the handling of the body.

Some plans are paid for in full, while there are those that require the family members to pay for specific items such as the casket and any additional services. Installment options allow planholders to pay for their plans over several years. In case they pass away during the payment term, the full unpaid balance usually becomes due.

The risk associated with a funeral plan is the possibility that the service provider might close down prior to the planholder’s death. Those who are interested in this type of product should check the contract provisions for this type of contingency. It is important to ask questions and get definite answers in matters concerning the extent of accountability of the service provider.

Life Insurance

The second type is a life insurance policy that is intended to cover the insured’s final expenses. Unlike a memorial plan, the proceeds of life insurance offer more flexibility in terms of what it should be used for. The family is free to allocate the proceeds for whatever expenses that arise out of the insured’s demise. Insurance proceeds, however, are not awarded immediately. The beneficiaries named in the insurance policy should file a claim by presenting the required documents.

Final expense insurance requires lower payments. The premium rates of the insurance coverage vary depending on the insured’s age and health condition among others. The insured can choose a coverage that accumulates cash value to add to the benefits his beneficiaries will get. Cash value plans, however, are more expensive than regular plans.

The insured can choose a term life coverage or a whole life coverage. A term life coverage is only in effect for a specific period, while a whole life coverage protects the insured for his entire life. Term is cheaper than whole life, but the insured does not get anything if he is still alive on the policy’s termination date. Insurance products are often regulated and the benefits are backed by reserves as mandated by the government.

The Wise Choice

There are advantages and disadvantages to memorial plans and insurance policies. The choice is yours to make. Decide on factors which you consider to be top priority. If convenience is what you want, a memorial plan would suit your requirement. On the other hand, if you want your family to have a pool of funds to use for various expenses, a life insurance policy would be the obvious choice.