Funeral Insurance is a type of insurance in which the person can earn money for their funeral after death. This is one of the best options for the one who wants to self-dependent throughout their lives. The insurance helps them to get the money for their funeral. The insurance is designed in such a way that it can bear all the expenses of the funeral. This way, a person who does not have any kind of their own can also plan and have a funeral of their own. Their disadvantages about funeral insurance that you must know before taking it and some of them are discussed below:
Truths about Funeral Insurance
- Total cost:
In such funeral insurance policies, it is certainly possible that you may end up. Paying more than the final cost of the funeral. Thus, before buying any such policy, investigate properly and if needed, choose the best funeral insurance policy for your loved ones.
Getting funeral insurance is not anything as a part of saving the plan. If for some reason you have to cancel the cover or are not able to pay your monthly obligations, you will lose the money you have paid till date. And this can be financially devastating for many.
- Increasing premiums:
Most of the funeral insurance policies may have increased premiums in the future. The cost of the insurance products of the company may not be locked in. And if you are unable to pay the increased premium in the future, you may have to forfeit the policy completely and may lose the money you have contributed.
- Subject to approval:
You have to tell everything about the person you are taking funeral insurance to the third-party that offers you the insurance. And if the insurance firm gets to know anything you didn’t disclose in the beginning, you may have breached a term and thus at risk of not receiving any benefits.
- Premium is based on the cause of death:
There is only accidental death covered in the ‘moratorium’ period, nearly for two years. If one dies from the natural cause of by your hand, some companies will pay back to you with only a mere interest.
- Lower Cash values:
Even after paying the premiums for 30 years, many of the cash market value policies net you only three percent return. There are more safe and beneficial options for investing in life insurance rather than funeral insurance.
Thus, it is always suggested to first take a regular life term policy before taking any burial or funeral insurance. Funeral Insurances are one of the best ways to get money for a funeral even when you are not alive. This way, the family does not have to depend upon others for your funeral. So it is at this moment recommended that you all should do this insurance so that your family does not have to beg after your death.