Funerals can be one of the heaviest expenses you incur in life, and it can become a burden for others after one has passed. If you hope to get yourself an affordable insurance cover, there are several things you need to look at. Choosing your preferred plan is assuring future financial stability for your surviving members of family who will have to arrange the final send-off, and transition to a new life after that.
You can choose between $5000 to $15,000 cover. This will be paid back to your chosen beneficiary upon death. The exact price of funeral insurance depends upon your personal unique situation. The best way to approach your insurance policy of choice is requesting a quote. You should do your research to get the right policy at the most affordable price. However, bear in mind that insurance is a highly regulated product and you will not find any ‘deals’.
Avoid uncapped funeral insurance premium
Ensure that the insurance policy you purchase or apply for has capped premiums. This means you will not have to keep paying premiums for the rest of your life, premiums cap at a certain amount, and then you stop paying. A cap is a mark of a good value policy. Some insurance policies feature age caps that cap out a certain age limit, for example 90 years of age. Be wary that with some policies, the total amount of premium paid can be twice as that of the actual amount insured.
Stepped and Level premiums
The premium paid each year is recalculated on the amount of benefit and the applicable premium rate at the time. Stepped premiums usually base rates on age when a cover is first taken; older ages will have higher premiums with this cover. Stepped premiums are the most common.
Your other option is leveled premium that is based on the amount you choose at the start of your cover. The premium rate does not change with your age and, therefore, will become cheaper at older ages.
Get the best value for your money
We‘ll give you tips to identify the most affordable insurance policy.
- Look for discounts with insurance policies. An example is joint policy (with your partner) which can offer a discount of 20%.
- Insure that you are considering the long run when going for a policy plan. You can get fixed premium policies that ensure the cost never goes up.
- Get policies with value guarantees. These guarantees ensure that you do not end up paying more in premiums than the original amount you have insured.
- Check around online for the cheapest funeral insurance quotes. Find and purchase a policy that fits with your preferences. Also, ensure the policy you are going for has all the benefits you want.
Try not to take funeral insurance too young. Although death is a certainty, it remains a major oblivion as to when one will actually die. Do take the steps we have highlighted for you into account, it will help you save a lot and gain the benefits.