As a responsible adult, it is a good idea to plan for your own funeral and to pre-pay its related funeral expenses. By doing so, you will not only be able to make sure that your wishes and preferences are put into place, but you will be able to remove the burden of those decisions from your loved ones. Fortunately, there is more than one way to do so.
A standard life insurance policy typically pays to the people you have listed as beneficiaries while your pre-need insurance policy will usually do otherwise. In 2012, the average cost of an adult funeral was more than seven thousand dollars, so taking care of your own final arrangements is no small thing.
How Well Do You Understand Your Life Insurance Policy?
One common mistake that many people make today is assuming that their life insurance will automatically transfer payments to the funeral home of their choice, when it becomes necessary, However, the fact is that most insurance companies must first have an arrangement in place with the funeral home before approving an up-front payment and that is rarely something that can be done quickly.
Since immediate payments are not always an option, your friends and family members could find out at the worst possible time that alternative arrangements need to be made. Fortunately, your life insurance policy will probably list what their policy is for approving payments directly to a funeral home. In addition, your insurance agent should be able to provide you with a list of the funeral homes with whom they directly work.
Do You Have Pre-Need Insurance?
Pre-need insurance is one example of whole-life insurance. It is provided by funeral homes and your payments are made to a participating insurance company. It is important to note that this type of life insurance provides immediate payment to the funeral home, without the delays that are so common with more typical life insurance policies.
Pre-need insurance is also known as funeral insurance. You can still make whatever final arrangements you prefer, including the casket, urn, vault, etc. as long as the total cost is still within the total amount of your policy.
In conclusion, planning for the execution and payment of your final expenses can be seen as a final, merciful gift to your loved ones. By doing so, you can make your death a little easier to cope with and provide them with peace at an emotional time.
Share13 August 2015
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