Financing your funeral: funeral insurance
Financial crisis requires, subscribe to a mutual health to preserve health expenses is no longer sufficient. It is also possible to predict the costs of his funeral and take care of it before even the situation requires it: this is precisely what allows a funeral insurance contract.
What is funeral insurance?
A funeral insurance (also called a “funeral agreement”) is an agreement whereby the insurer agrees to finance the funeral of the insured in return for a premium insurance to be paid periodically. In simpler terms, it is a provident contract that allows the insured to secure capital for the organization and coverage of his funeral expenses upon his death.
It is ultimately a lifetime life insurance policy, so it lasts throughout the life of the subscriber.
What is the purpose of a funeral contract?
Since death remains a delicate subject for the person concerned as well as for the loved ones of the deceased, this insurance gives the insured two things:
- To pay in advance the funeral by means of a capital contract;
- To organize his funeral in the smallest details and according to his wishes through a contract called “in benefits”.
It’s also a great way to protect the family from further concerns:
- Logistically: disagreements between relatives on the type of burial, or choice between burial or cremation etc. ;
- That financially: since the death of a loved one is already a particularly difficult test in itself, it is often welcome not to have to pay in addition to a bill sometimes very difficult to assume for some.
Good to know
It is important to distinguish funeral insurance from death insurance which have absolutely no purpose. See here to understand the differences.
The benefit contract to anticipate the organization of his funeral
Whatever the reason, many people wish to anticipate the organization of their funeral.
Funeral insurance is a useful tool at their disposal to plan everything. They will not only unload their loved ones from the cost of the ceremony, but will save them from organizing.
There are three main reasons for people to plan their funeral.
- Their desire to have funerals corresponding to their vision of death and their philosophical and religious ideas. By organizing everything, the person does not risk seeing his last wishes ignored or distorted.
- Their concern is to relieve their loved ones of all the often painful steps for families in pain.
- The concern of people without families and loved ones to know that everything will be planned and that they will leave as they wish and not according to the will of a distant heir with whom she had in the relationship.
The different contracts meeting this objective
The market offers two types of service contracts to satisfy this desire to organize everything.
Standardized benefit contracts: these “block” contracts offered by insurers only offer you a limited choice of options. Most of the benefits are imposed on you and you have no possibility to change what is planned. These contracts are often disappointing, because the imposed benefits of not offering little choice except between burial and incineration and that of a civil or religious ceremony. In addition, these formulas are often summarized by a commercial name and their content varies with the years, which will not necessarily correspond to the wishes expressed several years before …
Good to know
This often controversial formula tends to be abandoned by insurers.
Individualized benefit contracts: in this type of formula, the choice is infinite. You are totally free. You describe your needs, your choices are quantified and the corresponding amount is retained as the sum insured in the contract.
An estimate detailing all the services chosen is attached to the contract and will serve as a basis for the preparation of the ceremony on the day.
Today, it is this type of high end contract that should be favored, so you can predict everything, choose everything, down to the smallest detail so that everything is according to your wishes.
What happens when the insured dies?
Whatever its use, the capital is delivered to beneficiaries upon the death of the insured. It is therefore imperative that they are aware of the existence of such insurance before their disappearance.
Thus, at the presentation of a voucher, the fund will be released and the capital donated to whom it is entitled. The time may vary depending on the insurance company, but generally count 48 hours worked to receive the full capital.