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Funeral insurance

Funeral Insurance is otherwise known as Pre-Need Insurance or burial Insurance. Pre-Plan and pre-pay for your final arrangements before the need arises. Imagine how a funeral would be and what kind of service they provide and what kind of coffin you prefer?

Tips in view of Pre-need Insurance:

Check the states law on Pre-need insurance.

Before buying any funeral insurance policy discuss with your family members and attorney. Make sure that it is consistent with your will and your estate plan

Verify the license of the agent, funeral director, or insurance company before doing business.

Before you lock in see if there are any free look laws, which state might review your policy.

Check with Funeral director whether they can provide any price guarantee. Otherwise the money you paid might not be useful for the costs of your funeral.

Do not accept any documents that are incomplete and the document should be signed in your presence.

Make sure the funeral arrangements can be moved to any funeral home at any time. This is important, especially if you move after buying the pre-need plan.

Check all the arrangements, services and products provided as a part of pre-need insurance. Make sure that these services are spelled out in writing.

Make sure that you receive any statement every year containing the status of your policy.

You receive refund for the products and services if you decide to cancel your Policy.

With this policy you can arrange details of your funeral, including products and services, and pay for them in advance.

Funeral arrangement is not a new concept and the funeral costs are very high now-a-days. Among the purchases made by older Americans funerals and burials are very expensive. The average cost of a traditional funeral is $4,600. Add another $1,000 for flowers, obituary notices, acknowledgment cards, burial liners or vaults, and special transportation. Those costs do not include the burial, which can cost an additional $2,400.

The amount paid by you today might not cover the costs of your funeral when time comes. So you need to require beneficiaries from a life insurance or any other source to dip into funds.

Funeral pre-plan is a personal decision. After you choose your requirements and the services insurance agent or funeral director writes a document that cover the following specifications:

A casket or urn

Cremation

Embalming (not legally required unless there will be a public viewing)

Burial vault or grave liner

Grave marker

Hearse and other funeral vehicles

Flowers

Digging and filling the grave

The burial plot

Payment of Premiums for the policy:

In most cases, you must purchase a burial policy in one lump-sum payment. Some policies let you pay your premiums over three, five or 10 years. Payment plans also depend on what options you include in the policy.

If you buy a single-premium policy (and pay one lump sum at the time of application) you immediately have coverage for the full death benefit. People who have a serious health problem can receive a policy with a graded death benefit, which means the coverage amount increases over time.

Caution is needed before buying a funeral policy as you would be spending many dollars on it. Money paid to funeral directors for pre-need funerals belongs to the consumer and must be made available to the consumer upon request at any time.