When you retire, one of the things you will have to address is what will happen when you pass on. While no one would wish to pass on, the reality is that death is inevitable. When death happens, loved ones are usually left with emotional pain and heartache because of losing someone. However, if you are the breadwinner of the family, the pain will extend beyond emotional to touch on finances.
The best gift you can leave your family when you are gone is a secure financial future. One of the expenses that you family will have to contend with is arranging for your funeral. Funeral arrangements are usually expensive and can drain the financial resources of the family. You can however ensure that your family does not suffer by taking a funeral insurance plan early in your life.
What is Funeral Plan Insurance?
A funeral insurance plan is a cover that is meant to relieve your loved ones of the financial constraints that come with having to arrange a funeral. The cover provides a specified payout, depending on the policy you took, and some additional benefits. For example, some insurance companies can provide both a funeral payout and a loss benefits to your next of kin.
Depending on the insurance company that you take a cover with, you can specify the uses of the funeral payout you are leaving your family. For instance, if you still have kids in school, you can indicate that part of the payout be used to pay their college tuition. This way, you will be guaranteeing the education of your children even when you are not around.
Before you sign up for a funeral cover, it’s important to know some details. For example, you should find out how much premiums you will have to pay, the frequency of payment, how much payout your loved ones will be entitled to, what funeral activities will be covered by the insurance, who will be in charge of the payout you leave among others.
It is also important to compare the funeral compensation policies offered by different insurance companies. A quick search on the Internet can help you identify the fees to pay and extent of cover of various plans offered by insurers. If you are not sure which insurance company to sign up with, consult your financial adviser.
Buying funeral cover insurance is the best way of ensuring the financial security of your family when you are gone.