An Essential Guide to Funeral Insurance

Funeral insurance has become increasingly popular as a larger portion of Australian society reaches retirement age. Baby boomers are recognizing their families may not be in a position to pay for unplanned funeral expenses. Purchasing funeral insurance is a way the older generation can ensure that they won’t leave their loved ones in debt.

Candidates for Funeral Insurance Coverage

Essentially everyone is a good candidate for funeral insurance coverage since everyone will die sooner or later. It doesn’t matter if you are young or old, in poor health or good health, purchasing funeral insurance can give you peace of mind. Funeral insurance coverage will help ease the financial burden from your family in their time of grieving.

Standard Coverage

Make sure that you purchase enough coverage. The cost of a simple funeral is around $8,000 and your coverage may cover only the basic funeral necessities. You should invest in enough coverage by purchasing a funeral expenses cover and not just the minimal basic insurance.

Funeral Costs Not Generally Covered

Many funeral insurance policies will pay out a lump sum upon the death of the policy holder. Make sure that if your policy doesn’t, that your funeral coverage will include embalming, flowers, the service, cemetery fees, transportation and cremation. Otherwise, these may be counted as extras. Be sure to factor in inflation because just like everything, the cost of a funeral will rise over time.

Cost of Coverage

Your funeral can be exactly how simple or extravagant you want it to be. Decide if you want to be cremated or buried in the cemetery. Will you have a small graveside service, or a larger church service? What you decide will determine the cost of your insurance. Your funeral will pre-paid and pre-planned when you buy the funeral insurance premiums and make the payments.

Additional Coverage to Consider

Many individuals who take out a funeral insurance plan also get life insurance coverage as well. This will give your family members financial support after you are gone. If you are married, get additional coverage for your partner on your funeral insurance plan and add additional life insurance coverage, this way you are both provided for when one of you passes.

There are many additional types of valuable insurance coverage that can be added to your funeral and life insurance coverage, such as: Accident insurance, cancer insurance, disability insurance, and serious illness cover.