Richard Wojcik says families looking for more affordable options for funeral expenses are choosing funeral/burial insurance. Life insurance plans have always been the primary choice when it comes to providing relief and financial security for loved ones, however, with limited funds, funeral insurance have become a good option.
Funeral expenses can spiral, placing a burden on loved ones. Far too often, loved ones realize the true cost of a funeral. And to add to the grief, learning a life insurance policy has lapsed, or will not cover all the essentials add onto the emotional toll. Everything from preparing the body to a memorial service becomes an expensive affair. Wojcik points out how families rarely consider all the expenses of a funeral, until that day comes.
There are three different types of funeral/bural policies:
Burial Insurance: This type of policy has a named beneficiary and that person will apply the death benefits, to the funeral expenses, in any way they deem necessary.
Pre-need Funeral Insurance: Typically, a funeral home will be named and the policy will be paid out to cover the funeral expenses. The policy holder will have already organized, with the funeral home, whether they want cremation or embalming, casket or urn, flowers, burial plot, etc.
Final Expenses: With this policy, a funeral home is not linked and the funds can be used at any funeral home.
Is It Worth It?
At a younger age, it makes sense to purchase a term or whole life insurance policy, because you have more time to spread out payments. However, if you have no responsibilities, like lingering debt, and you’re looking to simply cover the funeral expenses, a funeral policy is a good choice. Funeral life insurance is a policy that can be purchased without a medical examination, which typically appeals to seniors. The plan provides permanent coverage and customers who have health problems can still qualify for a policy. Also, premiums are very affordable, and coverage values are between $ 5,000 and $ 50,000.
According to Forbes magazine, the average cost of a funeral is between $7,000 and $10,000, and this doesn’t include the burial plot. Richard Wojcik says many families are opting for basic, essential services, and from an economic point of view, burial insurance provides an affordable option.
Should You Buy A Funeral Policy?
Richard Wojcik says the need for this type of policy depends on your situation. First, consider your and your family’s financial status. If you do not have any life insurance policy, you have limited funds, and no other way to pay for a funeral, you may want to consider a funeral policy.
It’s also a good way to take control of your funeral and arrange the final expenses to your wishes. Funeral policies can be as low as $5 dollars per month, and according to Wojcik, taking the planning in your own hands can lessen the emotional toll at a time when families need it most.