Today, most people would have bought a life insurance policy. In most cases, the prime reason is to loosen financial burdens on their loved ones after their death. However, funeral insurance plans are something different from typical monetary insurance policies. Funeral insurances are solely specific to serve the sudden burial/funeral costs of the one who has bought the plan. As elders, many would want to have an insurance policy that can soothe the sudden expense of their demise.
Not just that, today, accidental demise and medical illnesses are soaring rapidly. A recent survey states that four Australians die every day due to road accidents, and around 90 get seriously injured. Earlier, the options were limited, and there did not seem to be a better policy than a life insurance plan, although one did not have other needs. Luckily, today most renowned financial companies offer a specific funeral insurance policy for those who want financial assistance for their family only for their funeral.
How Does a Funeral Insurance Policy Work?
Funeral insurance is one of the most uncomplicated insurance policies one can buy. All you have to do is fill in an application form which will include a few medical questions. And once the plan is approved, you can proceed with the policy and start paying your monthly premium fees. However, in some reputed firms, you get to choose your plan and even decide how much you will pay per month.
Some others offer flexibility to switch between policies and even cancel one anytime. And when it comes to retrieving the money, each firm will have a stipulated cooling period. This means, only after the completion of this period, your family can reclaim the fund. On the bottom line, funeral insurance assists your family financially while they make funeral decisions. Primarily, they cover all unexpected expenses at the time of your death which may include medical expenditures, legal funeral costs, etc.
Benefits of Buying a Funeral Insurance Policy
One significant benefit you will enjoy from a funeral insurance plan is that you need not go with a life insurance plan if you do not need one. And if you are concerned about the burial expense/after-demise costs, a funeral insurance policy is the most affordable option. So, here are some other benefits you will enjoy from such plans:
1. Easy Availing
Unlike most life insurance policies, a funeral insurance policy is easy to buy and requires fewer qualifications to get one. Meanwhile, most insurance policies involve tedious application processes and other qualifying segments. In such cases, there are higher chances that your application to a life insurance plan can get rejected without the appropriate papers.
However, funeral insurance plans do not even require a medical exam. In most cases, it involves a questionnaire with a few medical-related questions. So, funeral insurance applications have lesser possibilities of getting rejected. In some other instances, you can avail of funeral insurance over the phone or get the proceedings done online!
2. Comparatively Inexpensive
Comparing life insurance policies which involve paying a hefty amount per month, funeral insurance can be bought for a minimal amount depending on your requirements. The figure roughly lies between $5,000 to $15,000. Thus, your commitment is minimal, and you can have such policies serve your family without investing more. You can also look out for plans that involve no entry or exit plans, offering tax exemptions and other bonus benefits to save some extra bucks.
3. Reclaim Cash When the Policy Is on
In cases of emergencies, funeral insurance policies allow you to pay ahead of time and get the services arranged earlier. As a result, you can also claim for the fund when the policy is still active, and this is one main benefit you can enjoy over other insurance plans.