Funeral Insurance

Summary List Placement 
Funeral and burial insurance is a good idea if you are on a fixed income and do not want to bother with a medical exam.
Life insurance pays the funeral home first, causing a delay before your beneficiaries receive the payout.
If your beneficiaries are relying on your life insurance for regular living expenses, this delay can disrupt their livelihood. 
Funeral insurance will cover final burial expenses while allowing your beneficiaries to get an immediate payout of your regular life insurance policy. 
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The loss of a loved one is emotional and traumatic. Making funeral preparations while grieving adds another layer of stress. Finances and the availability of funds compounds the issue. Typically, a life insurance policy will pay the funeral home and cemetery before disbursing funds to the beneficiaries. That means that your beneficiaries will have to wait a few weeks before receiving funds.

If those funds are needed to handle the mortgage or other expenses, regardless how large of a policy you selected, they will not have access to those funds for a while.

This is where having funeral insurance comes in handy. Your beneficiaries can use the funeral policy to handle all of the funeral expenses and receive an immediate payout of your other life insurance policy to cover bills and other necessities. If you already have life insurance, you should consider adding funeral or burial insurance, also known as “final expense” insurance.

Pre-need and burial insurance are different products 

There are several types of life insurance products. You may have heard burial and funeral insurance used interchangeably. Basically, funeral and burial insurance refers to products that cover final expenses, like funeral service or crematory costs. However, this should not be confused with pre-need insurance.

When a person works with a funeral home to decide exactly what they want and they pay for everything in advance, that coverage is called pre-need life insurance, Les Masterson, managing editor of Insure, told Business Insider. 

We do not recommend pre-need insurance because the beneficiary is the funeral home and coverage is specific to the chosen funeral home. Should the funeral home go out of business or you move out of state, you may not have coverage and that defeats the purpose of pre-planning. Additionally, according to the

Source:: Business Insider

      

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Even if you have life insurance, funeral insurance is a good supplemental policy — especially if beneficiaries are relying on you

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