What is Funeral Insurance?

Have you given any thought to who is going to be picking up the bill when it comes to your funeral?

If you are fifty plus, why not take the initiative and start saving for that inevitable expense by purchasing an over 50 insurance policy? By paying a modest monthly premium, you are assured of a death benefit settlement when you die that may help to pay the costs of your funeral.

Although the death benefit may be used by your surviving relatives or other beneficiaries for any other purpose, this type of insurance is widely used to help cover funeral costs – and is therefore also known as funeral insurance.

By taking some responsibility for meeting your funeral costs, you lift at least some of the burden off the shoulders of those relatives and friends at a time when they are already likely to be struggling with the grief of your passing.

 

The principles

The principles of over 50 insurance or funeral insurance are simple, straightforward and well-established. Even the Romans ran similar schemes – through early “burial societies” – to ensure that individuals were accorded the respect of a decent burial. The same concept was behind the growth and widespread appeal of the many friendly societies which sprang up in nineteenth-century England.

Perhaps one of the principal attractions of today’s forms of funeral insurance is its affordability. Premiums may be as low as just a few pounds a month, and the guaranteed death benefit is payable whenever you die. The cost of those monthly premiums is fixed for the remainder of your life, so you never need to pay more than the premium you agreed at the very start of the cover.

Unlike many other types of life insurance, you do not need to complete any medical declaration, and the success of your application is guaranteed for anyone aged fifty plus, up to as old as 75 or 85 years of age (depending on the insurer).

Premiums are payable monthly – a commitment you make for the remainder of your life or, with some insurance providers, until you reach the age of 90 – and the benefits are payable after the first one or two years (depending on the insurer) from the commencement of your cover.

The majority of such funeral insurance plans also pay an additional benefit if your death is the result of an accident and some may include an optional funeral benefit payment (specifically to cover the costs of your funeral).

 

Bear in mind

You might want to bear in mind that, because you are paying funeral insurance premiums for the remainder of your life, there is the possibility that you may have paid more in total premiums than the value of the final death benefit.

You might also want to take into account the effects of inflation on the death benefit guaranteed by your over 50 life insurance plan. Funeral costs are increasing all the time, and the sum that might once have covered the lion’s share of those costs may no longer pay for as large a proportion of the expenses when you eventually die.

As a somewhat more expensive alternative to funeral insurance, therefore, you might also want to consider a prepaid funeral plan.

 

 

 

 

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