I spend a lot of time in this space talking about planning for the later stages of your life. I try to at least make you aware of some of the financial (and often emotional) risks, and hopefully teach you a few ways to mitigate those risks, all with the idea that you can help yourself and your family.
I am afraid that I don’t have any solution for dying, and I am pretty sure that a fancy new solution isn’t in the works anytime soon. The truth is that someday, we all will die. That also means that the people who are closest to us will be sad. They may also be forced to plan and pay for a funeral literally a few hours after you die.
I’ve seen it happen, and I am sure many of you have also seen it happen.
Funeral insurance, which can also be referred to as final expense insurance or burial insurance, is a product you buy to help pay for your funeral so that your family and loved ones aren’t faced with a giant funeral bill in addition to mourning your loss.
Like anything else, the cost of a funeral can quickly add up. That is why many Canadians consider buying funeral insurance, which will provide a payout to cover the cost of your funeral when the time comes. It is a smart move.
What is Funeral Insurance?
Funeral insurance is simply a permanent life insurance policy (so it never expires like term insurance, for example) and the premiums that you pay will always stay the same.
The trick with funeral insurance is that because the amount of insurance needed is often much less than a traditional life insurance policy, and therefore, it is also much cheaper than a traditional life insurance policy.
Funeral insurance has a smaller payout and as a result it is less expensive.
As I mentioned, funeral insurance is permanent and does not have an expiry date, so it will be there when your family needs it, as long as you pay the premiums.
How much coverage do you need?
Today in Canada, it is estimated that funerals cost between $5,000 and $15,000, but of course that amount can vary wildly depending on how extravagant you want to be. That is the amount that your surviving family or friends would be forced to pay, if you don’t have funeral insurance in place to cover the bill.
Will I qualify?
Many older Canadians sometimes will avoid shopping for funeral insurance because of poor health, and they think that they won’t qualify. I always encourage them to shop anyway because funeral insurance policies are much easier to get than traditional life insurance because there is no medical exam involved.
You can even get covered if you have a serious illness, although there could be a waiting period in some cases. Very few cases are declined.
How do I buy funeral insurance?
I have been involved in many funerals, and they are never fun. They are even less fun when you have to worry about how much room is left on your credit card while mourning the loss of a dear loved one.
Funeral insurance is cheap, coverage is virtually guaranteed, and you can get it over the phone in about 20 minutes in many cases. There really is no reason not to have it.
If you would like to find out how much a funeral insurance policy would cost, you can get a quote here: GET FUNERAL INSURANCE QUOTE
As always, I wish you health and happiness.
With Gratitude,
Kevin-Barry Henry.
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.