| Funeral bills will start around $6,000 and rise from there | | | | or on a fortnightly routine. |
| (and this is just a basic funeral). While your family will | | | | • What about inflation? Some funeral insurance |
| want to give you the best they can, they will be helped | | | | policies will provide you with coverage that will grow |
| enormously with financial costs when you have a | | | | with inflation. Be sure that your plan provides this type |
| funeral insurance policy in hand. Unfortunately, you may | | | | of protection. |
| not be able to rely on life insurance to pay your | | | | • Be sure you fully understand the funeral insurance |
| financial bills at the time of the funeral. Since most | | | | plan prior to getting in on it. |
| funerals are paid for at the time of death, or shortly | | | | Ways to Save on Funeral Insurance |
| thereafter, there has not been enough time for a life | | | | To save money on funeral insurance, there are a few |
| insurance policy to pay out (this can take months to | | | | things to do. First, get quotes from several insurance |
| years if there is a problem). | | | | companies to compare what they are offering |
| Coverage Under Funeral Insurance | | | | (especially the amount of cover and limitations). You |
| Funeral insurance provides your family with a payout | | | | will find a large range in pricing for premiums across |
| at the time that you die. The payout is strictly used to | | | | the board. In addition, many companies have higher or |
| pay for funeral costs, including burial costs. There are a | | | | lower cover amounts, which will affect your price as |
| number of different plans available to choose from, but | | | | well. |
| most plans will accept anyone between the ages of 15 | | | | Also, consider an accidental death period. Some |
| to 80 into them. There are no health or blood checks | | | | policies provide a 12 month or 24 month accidental |
| done on you. In addition to this, the overall costs are | | | | death period in which there is no payout for those first |
| low, sometimes a few dollars a week. The amount | | | | months of service. Yet, you should be able to get back |
| paid out can range widely, but most plans pay about | | | | the premiums you have paid in. This will give you a |
| $15,000. | | | | lower premium cost during those years and beyond. |
| The general funeral insurance plan can have various | | | | Don't forget about inflation. Some policies will not |
| components to it as well. For example, some plans | | | | change over time, which means that $15,000 today |
| offer discounts if more than one household or family | | | | may still be just $15,000 in ten, twenty or more years |
| member is on it. Single and family plans are available, | | | | (even though funeral expenses have doubled). Ask |
| with some family plans offering discounts of up to 10 | | | | about a money back guarantee for a limited time if |
| percent for the second individual. | | | | you change your mind. |
| In some funeral insurance plans, accidental death, such | | | | Beware Before Signing |
| as when you are involved in a car accident, can result | | | | Prior to signing the contract for a funeral insurance |
| in more of a payout, up to double the costs of a | | | | plan, do your homework. Know the average cost of |
| standard payout. | | | | the type of funeral you would like and be sure enough |
| Questions for Your Provider | | | | cover is provided. Also, find out what limitations, if any, |
| When talking to your provider for funeral insurance, | | | | are placed on how the funds from the policy are |
| there are a number of questions to ask them. | | | | spent. |
| • How do premiums change over time? Stepped up | | | | Additional Coverage to Consider |
| premiums are common. These start at a lower level | | | | While funeral insurance provides your family with a |
| and as you age will increase. Level premiums start at | | | | way of handling the costs of your funeral directly, it is |
| a higher level but do not change over time. | | | | not a life insurance policy. If your family is dependent |
| • When are premiums paid? Some funeral | | | | on your income at this time, then you should have a |
| insurance companies allow you to choose how often | | | | quality life insurance plan in place which will help them |
| you pay for your insurance. This is often every month | | | | pay their mortgage or other debts without worry. |