Taking the time to determine how to pay for one's funeral is usually put off. No one wants to talk about it and it always seems like there will be a better time than today to think about the finances after one passes away. But, in reality we all know that there is no better time than today to make sure our funeral expenses are taken care of so our living family does not have to suffer twice: an extra financial burden along with our loss.
Planning on how to pay for one's funeral expenses can be taken care of quickly when one knows how they want to go about doing it. In the time it would take to bake a cake or clean out the garage, one can have their funeral expense plan in place so they don't have that worry sitting in the back of their mind for another day. The key to getting it done quickly is researching ahead of time what financial planning tool one wants to use for their funeral expenses.
The most popular choices for funeral expenses or a memorial fund are: a small whole life insurance policy, a preneed life insurance policy, or a larger traditional life insurance policy.
When you hear someone say they have funeral insurance or burial insurance, they probably have purchased a small life insurance policy to help cover their final expenses. These smaller life insurance policies help loved ones leave a small amount of money after they have died to help their families pay for any needed expenses including funeral expenses.
Since larger insurance companies traditionally don't offer smaller life insurance policies, if one would want a smaller life insurance policy for their funeral expenses they would need to check into smaller life insurance companies, such as Colonial Penn, for these types of policies.
Most small whole life insurance policy companies that offer life insurance policies for funeral expenses or memorial funds offer guaranteed acceptance polices which means there are no questions to answer about one's health and therefore the life insurance policy applicant is guaranteed to be accepted.
Preeneed Life Insurance Policy:
Some prefer a
preneed life insurance policy over the above option of a small whole life insurance policy for their funeral expenses. This is because
preneed life insurance policies are bought directly from a funeral home and cover specific services and expenses the
insured chooses.
Another popular reason that many choose a preneed life insurance policy is because that in many states the funeral home director is the beneficiary and the funds are usually available immediately after one's death. Therefore the funeral home director can take care of all the funeral expenses and insurance issues and the living family does not have to worry about that need on top of grieving for their past loved one.
A Larger Traditional Life Insurance Policy for Funeral Expenses:
Many want to leave their loved ones with more than just enough to pay for funeral expenses. With a large,
traditional life insurance policy there would be enough money available to take care of additional financial needs besides the funeral expenses. Medical bills, an unpaid mortgage or any other unpaid debts can be taken care of with a traditional larger life insurance policy.
Sometimes many avoid a larger traditional life insurance policy for their funeral or memorial expenses since the other options of a preneed policy or a small life insurance policy are generally guaranteed acceptance. This can be a valid choice for those with a lot of health problems but for those who don't have any serious health issues, it may be a better decision to look into a traditional larger life insurance policy for their funeral and final expense needs.
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