Financing your funeral: funeral insurance

Financing your funeral: funeral insurance

Financial crisis requires, subscribe a mutual health to preserve health expenses is no longer sufficient. It is also possible to predict the costs of his funeral and take care of it before even the situation requires it: this is precisely what a funeral insurance policy allows.

What is a funeral insurance?

A funeral insurance (also called “funeral agreement”) is an agreement whereby the insurer undertakes to finance the funeral of the insured in return for an insurance premium to be paid periodically. In simpler terms, it is a provident contract that allows the insured to secure capital for the organization and coverage of his funeral expenses upon his death.

It is ultimately a lifetime life insurance policy, so it lasts throughout the life of the subscriber.

What is a funeral contract for?

Since death remains a delicate subject for the person concerned as well as for the loved ones of the deceased, this insurance gives the insured two things:

  • To pay in advance the funeral by means of a capital contract;
  • To organize his funeral in the smallest detail and according to his wishes through a contract called “in benefits”.

It’s also a great way to protect the family from further concerns:

  • Logistically : disagreements between relatives about the type of burial, or choice between burial or cremation etc. ;
  • That financially : since the death of a loved one is already a particularly difficult test in itself, it is often welcome not to have to pay in addition to an invoice sometimes very difficult to assume for some.

Good to know

Funeral insurance should be distinguished from death insurance, which has absolutely no purpose. See here to understand the differences.

The benefit contract to anticipate the organization of his funeral

Whatever the reason, many people wish to anticipate the organization of their funeral.

Funeral insurance is a useful tool at their disposal to plan everything. They will not only unload their loved ones from the cost of the ceremony, but will spare them the organizational steps.

Various motivations

There are three main reasons for people to plan their funeral.

  • Their desire to have funerals corresponding to their vision of death and their philosophical and religious ideas. By organizing everything, the person does not risk seeing his last wishes ignored or distorted.
  • Their concern to unload their loved ones from all the often painful steps for families in pain.
  • The concern of people without family or loved ones to know that everything will be planned and they will leave as they wish and not only by the will of a distant heir with whom she had no relationship.

The different contracts that meet this objective

The market offers two types of service contracts to satisfy this desire to organize everything.

Standardized benefit contracts : these “block” contracts offered by insurers only offer you a limited choice of options. The majority of the benefits are imposed on you and you do not have the possibility to change what is planned. These contracts are often disappointing, because the benefits imposed do not offer little choice except that between burial and incineration and that of a civil or religious ceremony. Moreover, these formulas are very often summarized by a commercial name and their contents vary with the years, which will not correspond any more necessarily to the wishes expressed several years before

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