If you're considering purchasing burial insurance as a means of covering your funeral costs, there are a number of questions you should ask yourself before making a decision. What's the purpose behind burial insurance? Is it really needed? Will it be worth it in the long run?
Burial insurance, while, can be helpful for some individuals, is not necessarily the most appropriate option for all of us. What is funeral insurance (uitvaartverzekering vergelijken)? It refers to a coverage designed to pay for funeral expenses, which can come from any source-loss of life, illness, injury or property damage. Often, funeral expenses will also include payment for the funeral preparation, officiant, flowers, the casket, transportation costs to and from the funeral site, and even gifts (if applicable). The vast majority of funeral insurance policies do not require a direct funeral expense donation.
So, what is the purpose behind burial insurance worth to an individual? Does it really provide for family expenses after his or her death? Many of us may recall a time when we had a loved one who passed away, and we spent a great deal of time researching funeral plans and options, if we didn't have life insurance. For many of us, those final expenses might be the most difficult part of dealing with the death of a loved one.
Burial insurance policies are typically taken out by people who are financially able to pay for them. The premiums tend to be quite low for these types of policies, especially compared with life insurance premiums. They can even be paid in monthly installments, with the proceeds going to either a beneficiary or "cash value", which is simply the amount of your policy that is being used at the time of the transaction. A cash value policy is a good choice for some, because it provides flexibility in terms of where the money is placed. If you decide to use it for a particular purpose, this flexibility is allowed as well. Some companies even allow you to choose a particular investment option within the policy, with the proceeds from such investments being used to fund the funeral expenses, or for any other purpose.
One of the things that many families worry about when they are planning their own funerals, is whether they should consider taking out a term life policy, or a whole life policy. Both of these can provide the family with financial protection in the event of the policy holder's death. Term life policies last for a fixed number of years until the policy expires, at which point the outstanding amount on the policy is repaid. A whole life policy, on the other hand, has an indefinite term.
If you choose to take out both a whole and term life insurance policy, you will also need some type of burial insurance to cover costs associated with the burial, as well as the cost of the funeral. This is usually referred to as a payable life insurance policy. With a payable policy, the funeral expenses, including embalming, will be covered by the policy. If the family chooses to use a trust to hold funds for the funeral, then they will need to also take out a life insurance policy, so that the named beneficiary will receive the money. The beneficiary is likely to be another family member or friend.
There are several other options that families may want to consider, including leaving funds for a loved one's estate, or to pay for the funeral costs out of pocket. In many cases, life insurance leads to burial insurance. However, if the family decides not to take out burial insurance on their own, they may run into trouble should their death benefit be paid out before they die. Life insurance can also be a lot of money over time, especially if the beneficiary has a substantial amount of debt. This is where life insurance may not be an option.
In the end, burial insurance is a necessary evil of life. It helps to pay for unexpected funeral expenses, as well as the emotional toll of the situation. If life insurance (testament opstellen kosten) is not part of an overall plan for finances, then families should consider having a final expense insurance policy. Final expense insurance policies generally carry low premiums and can even be paid for monthly. This ensures that the families will not be burdened by the final expenses, and that they will have the money needed to pay them off in a timely manner.