Making arrangements to have funds available to your family to cover your funeral is a smart decision. It allows you to make sure your family is not burdened with having to find the money to pay for your funeral and the other expenses that often accompany the end of someone’s life.
Did you know that for the same amount of money you pay for a funeral plan you could get a life insurance policy offering not only cover for funeral expenses, but also a much higher pay out figure normally ranging from $100,000 to $1,000,000 in benefits?
The death of a loved one is always traumatic, without added financial burden. Having insurance in place means there is one less stress at this sad time.
A funeral plan can be the first option thought of when you’re looking for this type of cover. Its very name suggest that it is the best option for covering your funeral. However, a funeral plan isn’t the only option, or necessarily the best.
Getting the funds from a Life Insurance policy to cover the costs of a funeral doesn’t have to be a long process like many people assume it will. Many Life Insurance policies now have an in built funeral benefit included, where funds will be paid out to cover the cost of the funeral within 48 hours of receiving the death certificate.
Below is a comparison of the premiums and cover amount available with the two options for a 40 year old male, non-smoker:
• Funeral Plan – $15,000 cover with monthly premiums of $34.08
• Life Insurance – $425,000 cover with monthly premiums of $34.17
As you can see, the premiums are near identical, however the amount of cover is significantly different.
The funeral plan covers just that; the funeral expenses and this of course is a great help to your loved ones at a terrible time. But there is no substantial benefit to your family over the long term, where they may need the most financial support.
With the significantly higher amount of cover you can get with a life insurance plan for nearly the same amount of money you pay for a funeral plan, choosing life insurance over a funeral plan could mean a huge difference to your family’s wellbeing in the future. With a life insurance pay out, you can know that you are taking care of your family over the long term, not just the immediate need of a funeral. It can provide the money necessary to continue to pay the mortgage, kids education costs, car payments and everything else you provide for them.
Not having the money for all of these things to continue their current lifestyle can place a lot of unnecessary stress, burden and changes on them at an already distressing time.
Wouldn’t you rather spend your money on covering your funeral and also leaving extra money to your loved ones to pay off any debt or to set your children up for their future?
To find out just how easy it can be to organise Life Insurance to look after your family when you’re gone, talk to the experienced Advisers at Make A Difference Insurance.