Are you familiar with the term - 'Funeral insurance'? If not, let's get a basic idea by going through this post. The funeral insurance actually refers to the insurance policy which provides coverage for the cost incurred to the funeral expenses of the insured person. Though the funeral is not a joyous event, ensuring the expenses for this event will help the close ones to bid goodbye without any unexpected hassles. So, if you are thinking to avail any of the funeral insurance, you should be aware of some basic things at first.
Which parameters need to be considered before purchasing funeral insurance?
You may think that why I include to heading in this post rather entering directly into the key benefits, risks of the funeral policy. The answer is so simple, it is to prevent you from incurring unexpected losses. Sometimes, it is found that the paid premium for the funeral insurance is significantly higher than the coverage cost. Apart from this, the other unexpected scenarios include the sudden hike in the premium rate, cancellation of policy in case of non-payment of premium etc. So, just go through the following tips to know how to choose the best funeral insurer:
• At first, you have to estimate the funeral expense. Choose the insurance policy which pays a descent level of coverage cost. Otherwise, it will be a loss for you.
• Rather than choosing an insurance policy with 'stepped' premium payment method (premium rate is increasing every year), it is better to choose an insurance policy which offers 'level' premium payment method (Fixed premium rate till the end of the life).
• Option to increase or decrease the cover amount at any time.
• 30 days money back guarantee from the date of purchase.
What are the benefits of funeral insurance?
Purchasing funeral insurance can provide you different benefits. Some of them are discussed in the following:
• A wide range of cover amount which not only allows you choose the perfect coverage amount but also gives you the opportunity to select the premium type i.e. stepped or level premium. It not only helps you to be free from paying taxes but also provides coverage against funeral cost, debts as well as other expenses too.
• Early payout in case of terminal illness: Being an insured person, you will get the full cover amount before your death if you are suffering from any terminal illness. The terminal illness should be certified by a register medical officer.
• Hassle free claiming: Most of the certified funeral insurers provide easy as well as fast claiming process. It takes mostly 2 working days to pay the entire cover amount to the family members of the insured person.
• Extra benefits for joint policy: Sometimes, you may get extra discount on the premium rate while purchasing a joint policy from any of the funeral insurers. This will surely be a value for money purchase for you.
Risks included in the funeral insurance:
Apart from several above-mentioned benefits, funeral insurance has some risks too. The risks are as follows:
• In the case of stepped premium - Sometimes the insured persons find it difficult to pay the increased premium amount. Stopping of the premium payment may result in the cancellation of the policy.
• No outline of the increase rate of the premium which purchasing a funeral insurance with stepped premium payment mode.
These are the basic things which one should know before purchasing a funeral insurance. If you have any doubt regarding this, leave a comment in the comment box.
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