As you can probably imagine, we get calls pretty frequently asking for “end of life” financial advice. Recently, it had us thinking, “How prepared are people for the inevitable?”
We know this might not be the most comfortable topic, but it’s important. How will those you leave behind handle costly funeral expenses? Funeral or burial insurance, technically known as pre-need insurance, is becoming more and more popular. Most life insurance companies and agents sell this insurance as a type of life insurance.
There are actually two different types of funeral insurance plans. The first is a single-premium policy, in which you pay for the entire benefit upfront and have full coverage from this point on. There is also a graded death benefit, in which the amount of coverage increases over time. This means it may start at 20 percent the first year and increase to 100 percent by the fifth year.
All policies will detail exactly what they cover, but for the most part, these policies will cover some combination or most of the following:
- A burial plot and care by the grave site
- Urn and Cremation
- Funeral flower arrangements
- Grave marker
- Hearse and transportation
We hope this information helps. If you know of someone else it might help, please feel free to pass it on.