Funeral insurance seems a different kind of insurance and the main purpose to take up this insurance is to ensure that the family does not suffer any kind of financial problems when you have passed away. However, one needs to be extremely careful while going in for such insurance because it might not be all that beneficial and it is important to thoroughly read the document before you sign up.
Many a time it has been observed that the amount you get as cover is actually less than the premiums which you have paid in all the years. The wise decision would be to go in for prepaid funerals, life insurance or funeral bond as it seems they are going to be more advantageous.
Also, the age at which you take up your funeral insurance is important because if you plan to take it up at say age 65, then you will find that the premiums are so expensive that it will in turn pay for four funerals if you were to live till 91 which is certainly not a good indication.
Prepaid funerals might either pay for full or part of the funeral process and usually takes into consideration today’s price. You can fund your prepaid funerals either through the funeral service by contacting the particular funeral director but you must be aware that the funds for the same will depend on the funeral services chosen by you. There is the choice of pre-purchased products wherein which you can choose to pay for the cemetery plot or the memorial garden depending on your choice. The prepaid funeral plans depends on the type of funerals which you choose and accordingly you can either pay the money in full or you can even pay it in installments over a particular time frame.
The next option is that of the funeral bonds which is given out either by insurance companies or friendly societies and they also offer the option to pay premium either as lump sum or as installments, however, you should understand that the money which you pay towards this insurance cannot be retrieved for any other purpose. You can purchase funeral bonds either in your name or you can even create joint funeral bonds with multiple names and in the joint scenario, benefits of the same is incurred on the death of the first joint owner.
Apart from this, there is the funeral insurance in which you are required to pay premium until the age of 90 and after that age, the time cover continues for free. The benefit amount for the same can be either fixed or it can increase with time depending on your requirements.