A lot of people are uncomfortable talking about or even thinking about death; however, it is a sure eventuality that we all need to face sooner or later. It's a good idea to prepare for your death as early as possible, and one way to do this is by procuring funeral insurance or burial insurance, also known as final expense insurance.
- Check on reputable insurance providers. When doing comparison shopping among rates for funeral insurance, it's an efficient time-saver if you limit your options only to reputable institutions and insurance agents. After all, you would never want to invest your hard-earned money on something that would just dissolve before you need to cash in. The bottom line is, you have to put your trust in something that would definitely deserve it.
- Appraise the amount of insurance that would adequately cover expenses. It's not a good idea to go overboard on insurance coverage; the key is to calculate for typical costs of a funeral and burial (which would depend of course on your preferred method of interment). You could get current estimates from different funeral services provider - include such elements as cemetery plot, the actual funeral service, limousine service, etc. Remember to factor in inflation while computing for funeral costs. Aside from the physical requirements of a funeral and burial, also allot estimates for medical bills (for those not covered by your medical insurance), debts, and taxes. Double-check whether your existing life insurance policy covers burial expenses - if it's already covered, then you won't need to purchase an additional policy. From here, you could start doing comparison shopping for funeral policies that equal the amount of coverage that you have calculated a need for.
- Important things to look out for. When choosing among different funeral policies, the first thing you'd need to do is to double-check with the company as to what the total funeral coverage is: does it strictly cover funeral expenses only, or does it extend to other important expenses such as medical bills and taxes? As has been mentioned, if your current insurance already covers burial and medical costs, then perhaps a strict funeral policy (even one that is payable directly to a funeral services director) is just what is necessary for you. Know that generally, burial insurance is more versatile than what is referred to as funeral insurance. Check with the insurance agent for more details. Other things that comprise a good funeral insurance policy include affordable and permanent premium rates; a cash value that increases over time; full and easy benefit pay-out to beneficiaries upon the policy-holder's death; and tax-free benefits.
- Get an idea of current funeral insurance rates. It's important to get an idea as to how much funeral insurance premiums and coverages are. You could choose first to do comparison shopping online through online insurance companies. Some of these sites include jefc.co.za, insuranceline.com.au, dotukdirectory.co.uk if you live in the UK, insuranceshoppers.ca if you live in Canada, and hbf.com.au if you live in Australia. Remember that there are still so many sites that could help you out; ideally, you should do comparison shopping among 5 or more funeral insurance companies.
There you have it! Make sure that you study the coverage, premiums, face values and other important factors before you decide on your funeral insurance. Good luck!