Death is an unfortunate inevitability that we all must face. No one likes to think about a time when their loved one will no longer be around. It’s a very sad, emotional time. Not only will the family have to grapple with your loss, but they’ll also have to deal with the cost of a funeral. The average funeral in the United States costs between $7,000 and $10,000. This price tag can add a significant amount of stress on top of grief. Life insurance is one way to provide financial security for your family after your death. Not everyone needs a traditional life insurance policy though. For some, a funeral insurance policy is enough. Here is why you might want to consider a funeral insurance policy over a regular life insurance policy.
The Difference Between Life Insurance and Funeral Insurance
Both life insurance and funeral insurance are ways to provide your family financial support after your death. A traditional life insurance policy is meant to provide money for a funeral as well as help your family pay for other major costs such as a mortgage, car payments, and the like. It acts like an income replacement for a while as your family heals from your loss. Funeral insurance, on the other hand, is specifically designed to help your family pay for your funeral and other associated costs.
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You’re Older Now
Your age plays a major role in the how much you’ll pay for any type of life insurance, whether regular life insurance or funeral insurance. The older you are, though, the more difficult it can become to secure a traditional life insurance policy. Funeral insurance is aimed at older individuals. Still, you shouldn’t wait to take out a policy. The older you are when you apply, the more you’ll pay.
You Don’t Have Dependent Children
A regular life insurance policy is designed to help provide a replacement income for your family. If you have younger children, you want to make sure that they’re well taken care of. If you’re older, and your children are financially independent, the amount of money a life insurance policy is meant to pay out may not be necessary.
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You Don’t Have Many Significant Debts
Again, a regular life insurance policy is there to help your family continue to stay afloat financially while they recover from your loss. If you have significant debts, such as a mortgage, car payments, and young children to care for, this can be incredibly difficult when your family goes from two incomes to one. If you don’t have the same financial obligations, your house is paid off and you don’t have car payments or a significant amount of other debts, a funeral insurance policy will help to provide your family with what they need to pay for your funeral and still remain comfortable.
There’s No Medical Exam
Certain health issues can significantly affect your life insurance rates, or even result in your denial of coverage altogether. When it comes to regular life insurance, most providers require a medical exam, so these health issues can’t be hidden. There is no medical exam for funeral insurance. Instead, you’re only asked a series of questions. If you have more significant health issues, this makes it much easier for you to get a funeral insurance policy.
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Funeral insurance will help you to provide financial peace of mind for your family following your death. Before you purchase a policy, make sure that you determine what your family’s needs are so that you can provide them with the best protection possible.
