Insurance Policy v Pre-Paid Funeral Plan

Posted by on Dec 16, 2013 in Pre-Paid Funeral | Comments Off on Insurance Policy v Pre-Paid Funeral Plan

Insurance Policy v Pre-Paid Funeral Plan
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There are many different types of insurance policies available in the marketplace. Not all of these are designed to pay for your funeral after you have died. Most are arranged to provide your family with a source of income when yours is no longer available, most likely after you’ve died.

There are specific insurance policies that are designed to pay out a certain lump sum of money to pay towards your funeral. They do not guarantee to cover the cost of your funeral, but they pay-out the specific amount that is guaranteed from the day you arranged the policy.

When inflation increases the cost of funerals, you might be faced with a funeral that costs more than your insurance policy is designed to pay out.

One of the disadvantages of purchasing an insurance policy to cover your funeral expenses is that you might end up spending more in monthly premiums than the cost of the funeral, if you live longer than you expected.

An insurance policy will work to your financial advantage if you die early in the life of the policy because your claim will be for more than you have paid in.

A Pre-Paid Funeral Plan provides certain guarantees that an insurance policy lacks.

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