Funeral Insurance: Is It Worth It?
As we get older, it’s natural to want to start exploring ways we can alleviate pressure on our families. Funeral insurance is available, with the idea that the funds will be used to cover your final send-off expenses – making one less thing for your family to worry about. It also gives you the opportunity to plan ahead, and make sure you receive the type of funeral service you want.
However, before you sign up for a funeral insurance plan, it’s important to be aware of the downsides. Here are some problems commonly associated with funeral insurance, and alternative options available to you.
The risks associated with funeral insurance
Funeral insurance is often marketed to seniors as being easy to get and relatively inexpensive. Unfortunately in most cases, it turns out that funeral insurance isn’t worth the money you put in. Here’s why.
You could end up paying more in premiums than the cost of the funeral
The money you pay in premiums (the monthly fee required to keep the insurance going) could total more than the cost of your funeral, unless you pass away within around 5-10 years of taking out the insurance.
You may not get your money back if you cancel your insurance
As you get older, your expenses can increase – for medical bills, for example. If you can no longer afford to pay the premiums, many insurance providers don’t offer refunds, which means you’ll either lose the money you already put in, or have to keep paying.
Your premium may increase as you get older
Quite often, funeral plans are structured as a “stepped” policy, which means premiums increase as you get older. Be aware of this and make sure you’ll be able to manage increasing payments.
Why a prepaid funeral is a good alternative
Your passing will be a hugely emotional time for your family, and it makes sense to take action to lessen the burden in whichever way you can. There are options you can explore instead of funeral insurance, such as taking out a separate savings account or pre-planning a funeral.
Arranging your own farewell can feel overwhelming, but a prepaid funeral means you get to decide on the style of service you want, and you can plan for the funeral costs. We’ll talk you through your options such as choosing between a burial and a cremation, and assist with making a will if you need us.
At Fry Bros, your Funeral Arranger will openly discuss costs with you, and can help you explore your options if you’re concerned about being able to afford your funeral. You get to practise more control over the cost of the service, and can feel assured we have the professional expertise to assist you and your family when the time comes.
Contact Fry Bros
We’re here to help you plan ahead when it matters most. Call Fry Bros for a conversation, and we’ll be happy to answer all of your questions. You can reach us on 0249336155.