What you Need to Know about Funeral Insurance

Funeral expenses can add up to several thousand dollars whether you choose burial or cremation, leaving a burden on your loved ones after you pass away.

As many people work to pre-plan their services, they also take into consideration the variety of funeral insurance policies that are available to them. These plans can serve two purposes: 1) some plans lock in the cost of services and materials to protect you and your family against inflation, and 2) all plans ensure that your loved ones won’t be burdened with the cost of service when they’re already grieving. Funeral insurance can be a valuable component of preplanning.


Burial Versus Preneed Insurance

There are two kinds of funeral insurance policies; burial insurance and preneed insurance. Burial insurance policies are most commonly offered by life insurance companies and can be purchased as a part of a whole life or term life insurance plan.

The premium depends on the benefit amount and other factors, and an average policy is in the $5,000 – $15,000 range but can be taken out for $25,000 and sometimes more, if requested. These benefit dollars are paid to your primary beneficiary upon death and he or she can use the funds to cover the cost of the service and burial or cremation as well as other end-of-life expenses, like outstanding medical bills.

Preneed insurance policies work in almost the same way. You choose the amount you would like paid out to cover the cost of expenses and pay the premium while you’re still living, and upon death, the benefits are paid directly to the funeral home you’ve chosen. If you’ve preplanned your services, this strategy alleviates almost all of the burden from your family and allows them to focus on grieving, healing, and supporting the rest of the family through the loss rather than ironing out details and paying bills.

To better prepare for end of life and ease the discomfort for those you love most, contact Mountain View Funeral Home and Cemetery today. We’re standing by to help make this deeply personal task a little easier for you and those you cherish.

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