Funeral insurance is a low-cost alternative to term life insurance which provides specific cover for the expenses related to your funeral. People are often surprised by the costs and expenses they incur when a loved one dies, and the charges arrive at a very difficult and painful time, often well before an estate can be settled.
Your funeral could cost from $5,000 to over $15,000, depending on whether you choose to be buried or cremated; what kind of service your family would like; and whether there are any other costs such as outstanding medical expenses. The costs can include a burial plot and a coffin or casket; hire of the funeral venue and celebrant; as well as refreshments, flowers and catering.
All these expenses add up and could place an enormous financial strain on your family or friends. Funeral cover protects your family's savings and offers you a way to spare them the added anxiety of having to pay for your funeral while they are coming to terms with losing you.
Funeral plans can be popular as they offer a simple and economical way to protect your family against these specific costs. However, many term life insurance policies do offer an immediate advance payment to cover funeral costs, as well as protecting your family's long-term financial future. A comprehensive term life insurance policy may be a better choice if you want to make sure your family will be properly taken care of even after you are gone.