A Guide to Cheap Funeral Insurance

It seems a little morbid to talk about your death when you are whole and healthy. However, can you imagine the pain your family will go through if they are left with no finances after your death? This is why getting funeral insurance is extremely important when talking about buying your family a safety net to fall back on, in case of your untimely demise.

Nowadays, a funeral doesn’t come easy, especially on the family of the deceased, in terms of the financial costs attached. It costs around $11,000 to set up a funeral. So, when it comes to buying cheap funeral insurance, you have three choices:

  1. Preneed Funeral Insurance
  2. Final Expense Insurance
  3. Burial Insurance

To cut it short, final expense is the cheapest amongst the three. Following are the three policies explained in detail:

Funeral Insurance

Preneed Funeral Insurance

This insurance policy is linked to a funeral house and can last from 1 to 10 years. All the expenses are given to the funeral house and they are the ones who take care of the wake. The policy remains in effect, as long as the premiums are paid.

Final Expense Insurance

The reason why this is a cheap funeral insurance policy is because it is not related to any funeral house. Bought from an outside party, you are able to set your own limits and then spend it as you see fit. This policy allows you to plan a funeral within your budget and acquiesce to the wishes of the deceased. The best thing about final expense insurance is that you do not need to show your medical records. The earlier you buy, the better the rates you will get. Moreover, you can lock in the premium rates or go with fluctuating economy.

Burial Insurance Policy

With funeral expenses still on the rise, burial insurance policy does not provide much death benefit. The highest death benefit paid is $10,000, which does not cover the expenses as mentioned above. In case the funeral exceeds the amount of the policy, the beneficiary will have to pay for the expenses. This is why the death benefits are given to a blood relative, who can use it in any manner.

Benefits of Final Expense Insurance

  • It’s up to you to choose how you want to be put to rest and through which funeral house. It gives you the opportunity to create a list on what should be included in your funeral services from the obituary, to the flower arrangement, the food and who will give the eulogy.
  • The funeral home can be paid directly while your family makes the arrangement.
  • If the premium on the cheap funeral insurance policy increases, so does your chances of getting a high cash out. This means that your funeral will be done in a lavish manner.

Now that you have gotten an idea on how different types of funeral insurance works, you need to choose one based on your needs. Remember, purchasing a policy at your earliest allows you to pay lower premiums. In some cases, companies offer a cash back guarantee if the person is not able to pay the premiums in future.

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