Nobody likes to even think about the cost of funerals. Being as it means that a loved one has passed away. Yet, many are most vulnerable at this time. Many end up paying horrendous prices trying to make sure that they have honored their loved ones with what they call a decent funeral. It is their last opportunity to give their loved one the best. Therefore, many people tend to overspend on the funeral in its totality. There are many that cannot afford to arrange for what would even be considered to be a conservative funeral. This is one of the reasons why many are now looking at life insurance to at least cover the costs for this.
Buying Life Insurance Just to Cover A Funeral
Many individuals do not want to financially burden their loved ones with the cost of their funeral. To avoid this, they may look at buying life insurance that will have enough value to cover the costs that will arise from this. This can come with some challenges;
- There are many different types of life insurance. Which one is the best to buy for this purpose?
- How much insurance should the life insurance shopper buy? How do they estimate what the cost of the funeral is going to be?
- Another challenge that comes with this is that some buy their life insurance policy and pay on in for many years. The cost of funerals goes up each year. Is the policy bought now going to be enough to cover the costs in the future?
- How does one make sure that the life insurance policy is going to be spent on the funeral expenses?
Using an Insurance Calculator
There are some simple ways to try and estimate how much insurance one needs. Not just for the funeral expenses but for other expenses that may be a burden on loved ones. These are insurance calculators. They will list the most common expenses and give an estimate as to what these expenses could amount to. Then the user of the calculator can choose the figures they feel are most applicable to them. The calculator will add all these up and give a close estimate as to the amount of insurance that should be bought.
Guaranteed Death Benefit Insurance
Many of the Canadian Life Insurance Policies offer insurance that includes a guaranteed death benefit. They will each have their unique names for this type of insurance product.
Universal Life Insurance
For insurance that is going to give you a guaranteed death benefit, you will want to choose permanent life insurance. Which is Universal life. There are some good benefits with this type of insurance.
- Your death benefits remain in place for the life of the policy.
- A portion of your premiums in invested.
- You have the opportunity to grow your savings.
- Your beneficiaries will receive the full amount of the value of the policy.
- There is an opportunity to borrow against the savings of this life insurance policy. While you are still alive.
Term to 100 Life Insurance – Permanent Life Insurance
If you want just basic life insurance then a term policy that goes to the age of 100 may be cheaper and a more realistic type of insurance. That is if you don’t want the additional benefits that come with Universal life insurance.
The Basic Arrangements for an Average Funeral
1. Arrangements have to be made with a funeral home to pick up the deceased if they have died in the hospital, nursing home, or sometimes from their home.
2. Directions have to be given to the funeral director. There will be many decisions to be made.
- Is it going to be a burial or a cremation?
- A choice will have to be made for a casket or urn depending on the type of interment.
- The size of the funeral will have to be estimated so the funeral director can arrange for the proper sized room.
- Memorials will need to be chosen such as a guest registrar or memorial cards
3. Depending on the deceased’s faith a minister, clergyman or rabbi or some other religious authority will have to be contacted. They are responsible for the eulogy
4. The final resting place has to be decided upon. Arrangements have to be made with them. Including a headstone or marker.
5. Arrangements will have to be made for the pallbearers if it is a casket burial.
6. Flower arrangements have to made.
7. Music has to be arranged for during the service.
8.Transportation to the cemetery which is usually a service the funeral director provides.
9.A gathering after the funeral
- Some will book a hall for this. Or some funeral homes now have additional rooms to accommodate this need.
- Some type of refreshments will have to be arranged for.
10. The obituary is usually arranged through the local papers. Which gives the date, time and location of the funeral.
Each one of these adds to the overall cost of the funeral which can eventually add up to over $25,000.
Shop Carefully for Your Funeral Coverage Life Insurance
You are going to need to give some careful thought to this type of life insurance. If your main focus is on having enough funds to cover your funeral expenses. Funerals in Canada can range from $2,000 up to $25,000 or more. Things you will need to consider when deciding on the amount of coverage:
- What type of burial you are going to have. Normal a ground burial is more expensive than cremation.
- The cost of the plot where you will be buried.
- The increase in funeral expenses as they rise each year.
- Whether you want a simple private funeral or a more elaborate one.
Then finally you need to decide as to where you want to buy your funeral life insurance from. One of the easiest ways to make this decision is to get some online life insurance quotes. This way you have some choices. You can compare cost as well as a policy value. It will allow you to determine how much the premiums are and how these will fit in with your budget.