How Does Funeral Insurance Work?
Laying a loved one to rest can be a costly experience, even with the support of the right Funeral Director. The average cost for a cremation in the UK is just under £4,000 and a traditional funeral comes in at just under £5,000. In some instances, this can leave families out of pocket and unable to fulfil the needs of the deceased. One of the best ways that you can support your family is to invest in life insurance. In today’s blog, we’ll look at how this form of financial protection works.
What Is Funeral Insurance?
Also known as a funeral plan, funeral insurance allows you to bank away money every month in preparation for your death. The lump sum you collate is paid to the beneficiary upon death and is used to cover the funeral expenses. This insurance can be used for other means, including settling bills or debts of the deceased.
What Are the Advantages?
Funeral insurance allows you to provide financial support for your loved ones in the event of your death. It allows you to be confident that outstanding debt and bills will be paid, without these causing more distress to the members of your family. Funeral insurance is also inflation-protected so there will be no need to pay the difference and, as an insurance policy, it won’t count towards an estate.
With most types of funeral insurance, there isn’t a threshold that needs to be met before the payout is made. And, many policies could help you to get a more cost-effective funeral, even if you live in an expensive area.
How Much Does Funeral Insurance Cost?
The exact monthly fee and the lump sum will depend on how much you pay into your funeral insurance. However, these covers are designed to suit average funeral prices and normally equate to between £3,000 and £5,000. There is always the chance that insurance companies will increase premiums if you spread the costs over a long period but the risk is generally worth it for the peace of mind that this cover gives.
At Wallace Stuart Funeral Directors, we are on hand to support you as you make your way through the funeral planning process. If you would like to speak to a member of our team for more advice, let’s talk.