With the worsening of the global COVID-19 pandemic, many people continue to be concerned about the future, their health, and, unsurprisingly, what kind of legacy they may leave behind them for loved ones. While no one wants to spend a lot of time thinking mortality and preparing for a future in which you pass away, this type of planning has huge benefits for the loved ones currently in your life.
Burial insurance is one way for people to start thinking about their future and how they would like to prepare friends and family for a life without them. It’s got the benefit of easing the burden of funeral costs, something many people don’t think about. However, the average funeral is a little over $5000, without even working in casket or cremation costs. Getting some insurance ahead of time will be of great help because it eases the financial burden away from family at a difficult time. However, there are three things to think about when looking at burial insurance to make the experience go more smoothly.
Even when someone has a preferred cemetery or site for cremation in mind for funeral arrangements, the time and location of passing away are far from guaranteed. It sometimes occurs that someone passes away while traveling to another country. This now necessitates a return to the country of origin to continue with whatever funeral wishes, if any, have already bee set into place.
For extra peace of mind, think about putting in some transport expenses into your burial insurance. This way, if something occurs while traveling to another part of the country, or another country entirely, there is financing already in place to help facilitate transport back to the preferred destination.
For people that want to plan, pre-need insurance is a more specific, detail-oriented form of burial insurance. With this type of insurance policy, the holder of the policy takes control of everything ahead of time, selecting a coffin or cremation facility, paying for funeral services, and all other associated expenses.
This provides two significant benefits. Costs are now “locked-in” and paid for, meaning inflation is no longer a factor. More importantly, perhaps, the family doesn’t have to decide how to proceed with funeral arrangements, as everything is already done.
Typical burial insurance is just “cash on hand” in the event of death. This is a better option for those that would like to leave some of the choice available to surviving family members. Because it is burial insurance, the amounts involved are smaller than large scale insurance policies, such as life insurance. However, this also means that the money can only be used for funeral arrangements, nothing else.
This allows for more flexibility if you don’t want to lock everything ahead of time. The costs can’t be used for anything else. However, this way, family members still have some discretion of the funeral choices if you feel leaving the choice up to them is more appropriate.
If you’re thinking of planning for funeral costs, we can help. Contact us, and we can go over your burial insurance alternatives and other options.