Funeral Insurance: An Overview

As funeral costs creep toward the five-figure mark, the benefits of preneed insurance have never seemed more appealing to those reluctant to place the burden on their beneficiaries.* Though considering your mortality can put a damper on retirement planning, keeping family in mind as you prepare for the inevitable can lend peace of mind to a period of well-deserved rest and relaxation.

Covering the cost of funeral parlor fees, interment, and burial vessel, funeral insurance pays your premium directly to the funeral provider, circumventing any familial responsibility or delayed return on investment. The policyholder typically makes monthly contributions until the plan’s value is satisfied, safeguarding their beneficiaries from unexpected costs in their absence.

Policy specifics and costs will differ based on your chosen provider and many insurance companies may offer single-premium policy deals, which can be cheaper overall, but require an initial lump-sum payment instead of monthly installments. Consider what best suits your budget and consult with your lawyer before rushing into a policy. Many life insurance plans incorporate funeral costs, so impromptu policy acquisition can result in paying twice for the same benefits.


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Your funeral home of choice may also have its own list of particulars, so make it a point to discuss your plans with a funeral director and determine if they’ll honor your prospective policy or provide assurances on price. It can’t hurt to be overly cautious when selecting a policy and a funeral home. Make sure that your plan meets your needs and financial ability and allows your family to reap the benefits after your passing.

* Anonymous, (2019). 2019 Breakdown of Average Funeral Cost. Lincoln Heritage Life Insurance. Retrieved September, 2019