There are only two constant things in this world. First, you have change. Second, you have death. While the talks of death may come across as taboo or undesirable for many, this shouldn’t affect one’s decision making regarding its financial aspect.
Let’s face it, having a funeral or simply being dead is expensive. From hospitalization (which can be covered by your healthcare insurance) to funeral needs, it will cause a financial burden to loved ones who will have to pay for it to be fulfilled.
If you want to protect them from such unwanted expenses, one thing you can do to cushion such expensive affairs is to purchase a funeral policy. But, with the overwhelming amount and options available for you, let’s narrow it down to two popular choices. The funeral insurance and pre-need funeral plans.
Funeral Insurance (Burial Insurance)
This life insurance policy is designed to cover the costs of your funeral or cremation when you die. The policy provider pays the death benefits of your policy (the amount will depend on the policy you purchased) directly to your beneficiary who will use the money for its intended purpose.
Let’s look at this example: you have purchased a policy that grants PHP 500,000 for funeral expenses. After your death, this money is given to your beneficiary and the beneficiary will be the one responsible for the disbursement intended for your funeral expenses.
Benefits of Funeral Insurance
Because many of us gets lost in the haziness of work and other priorities, we tend to forget the importance of planning for the future. And, this is not only related to retirement but for our demise as well.
As such, a funeral insurance allows you to protect our beloved family members from unnecessary and expensive payments brought upon by your death. This is a financial support that will provide them with necessary means to cover unexpected expenses.
Pre-Need Funeral Plans
Another protective policy that sets aside funds for your funeral is the pre-need funeral plans. However, instead of outright disbursement of funds to your beneficiary, this funeral plan pays the chosen funeral provider of their services (such as standard funeral home services, funeral merchandise, church services and other services you have chosen).
Pre-Need Funeral Benefits
One of the greatest benefits you get from this policy is that it removes not only the financial burden from your family but removes administrative aspects such as choosing which funeral provider to select, which process to undertake, how the events will play out and more.
With this plan, your funeral wishes are followed through without disturbing your family members with their mourning and grieving process.
It is best to plan out and prepare for this inevitable happening in your life as early as possible. By doing so, you’re making the policy more affordable instead of purchasing at the last minute.
Photos: Pexels.com
