What is Funeral Insurance?

After funerals at funeral homes in Tallahassee, FL, if you have funeral insurance, your family will be able to use that policy toward payment of final expenses. Funeral insurance is easy to purchase, since the policies do not require a health examination as part of the approval process. Some policies are guaranteed-acceptance, which means you won’t be required to answer any health questions at all.

Although the death benefits of funeral insurance policies are moderate, they offer a very affordable way for everyone to have some or all of their final expenses covered. This can give you and your family peace of mind after you die.

While you can buy funeral insurance at any age, the targeted age group for funeral insurance policies is between 50 and 85. Death benefits usually range between $5,000 and $25,000 (the higher the death benefit, the higher the monthly premium will be). Death benefits are paid to the beneficiary listed on the policy. That person will then be responsible for putting that money toward your final expenses.

While you can purchase standalone funeral insurance policies, some insurance companies may allow you to convert a portion of an existing insurance policy that you have with them into a funeral insurance policy. This is most typically done when you have multiple policies with an insurance company, and one of those covers the purchase price of your home.

After you’ve been paying off the purchase price of your home for several years, you may not need the full amount the policy covers. Under the policy conversion plan, you can take the extra that is no longer needed and convert that to a different kind of insurance policy, including a funeral insurance policy.

Not all insurance companies offer this option, so be sure to check with your insurance agent to see if your insurance company does. This is an easy way to get a funeral insurance policy in place with very little hassle.

Because funeral insurance is a whole life insurance policy, it has no term – or end – to it (which means that premiums won’t go up in predetermined increments of time) and it is in effect for as long as you live. Most funeral insurance policies are considered paid in full when the policy holder reaches 100 years of age.

There are two types of funeral insurance plans: standard and preneed.

A standard funeral insurance plan is a whole life policy that is paid out to the beneficiary you name after you die to help pay for final expenses. Your beneficiary is free to work with the funeral home of their choice and they can choose whether to apply the death benefit toward any of the expenses you owe when you die, including medical bills, legal bills, credit card debt, or mortgage loans, auto loans, or personal loans.

A preneed funeral insurance plan differs from a standard funeral insurance plan because the death benefit is paid directly to the funeral home you choose instead of to a beneficiary. Preneed funeral insurance policies pay out shortly after your death.

When purchasing a funeral insurance policy, the best type of premium you can get is a leveled premium, which is locked in for life as soon as you purchase the policy, so you never need to worry about premiums increasing as you get older.

If you want to know more about funeral insurance policies at funeral homes in Tallahassee, FL, our compassionate and experienced staff at Lifesong Funerals & Cremations can help. You can come by our funeral home at 20 S. Duval St., Quincy, FL 32351, or you can contact us today at (850) 627-1111.