Importance of funeral cover
Funeral cover is also known as burial insurance, and it provides financial support for the funeral-related expenses of the policyholder. Just like a traditional life insurance policy offers financial support to the family members of the policyholder, funeral insurance offers support to the family members after the death of the policyholder. Some insurance providers and funeral homes even provide extra benefits such as pre-planning funerals like the freedom to choose burial and funeral products and services before the death of the policyholder. Read further to discover more interesting facts about the funeral cover and how to obtain the same.
The history behind the funeral insurance
In the ancient days which date back to the Roman Empire, social clubs were comprising poor citizens and military people. These social clubs were collecting funds to pay for the funeral expenses for the people in that club. These funeral clubs which were known as Fratres was gathering required funds from the members during the festivals to continue their memberships. In case of the death of any member of the group, the family members could place a claim for burial expenses.
What are the benefits of funeral cover?
The overall functioning of the burial insurance policy is the same as that of traditional life insurance or a term insurance policy. Just like a whole life insurance policy, after the death of the policyholder, the beneficiary gets the full cover insurance amount which he/she can use for any purpose. Burial insurance can pay for all the expenses related to the funeral of the policyholder. Extra services such as pre-funeral planning can also be accomplished with the help of such funeral cover. This means that family members of the policyholder no longer have to go through a stressful situation of managing and collecting funds for the funeral expenses after the policyholder’s death.
What are the necessary qualifications to be eligible for funeral cover?
Unlike traditional life insurance policies, the person intended to get funeral cover need not go through a critical medical examination. But he/she has to answer certain questions regarding his/her medical history and background about medical ailments. Some insurance companies even provide expiration terms in some cases. Insurance companies limit the insurance benefits up to a certain age say up to 80 years. After that age limit, if the person lives, then the insurance benefits are diminished.
What is the primary coverage and cost of buying a funeral insurance cover?
Funeral insurance cover usually has a little face value as compared to conventional life insurance and term life insurance policy. The face value for life insurance policies can go up to $100,000 and more. But the face value for burial insurance cover can only go up to $5000 to $50000. Some funeral homes and insurance companies provide premium payments of $2 to $3 every week. You need to be very careful while selecting the funeral cover for your requirements. Choose only those funeral cover policies which provide maximum coverage at minimal investment.