Funeral Coverage For Elderly Parents in 2023 (Don’t Get Stuck With A Big Bill)

The passing away of a loved one can be a very overwhelming experience. Keeping emotions in check and navigating the sea of unexpected expenses placed on us can be significantly stressful. Funeral coverage, often known as burial or final expense insurance, is a crucial aspect of financial planning that many families overlook.

funeral coverage

What Exactly Is Funeral Coverage?

Funeral coverage, also known as funeral insurance or burial insurance, is a type of insurance policy specifically designed to cover the costs associated with a person’s funeral and burial or cremation expenses.¹ It is a financial product aimed at helping individuals and their families plan for and manage the costs of end-of-life arrangements.

What Should You Consider When Taking Funeral Coverage?

Purpose: The primary purpose of funeral coverage is to ease the financial burden on the deceased’s family or loved ones when they have to cover the expenses related to the funeral, memorial service, burial, or cremation. These costs can include the funeral home services, casket or urn, cemetery or crematory fees, transportation, and other related expenses.
Coverage Amount: Funeral coverage policies typically provide a specific amount of coverage, often referred to as the death benefit or face value. The policyholder pays premiums, and upon their death, the designated beneficiary receives the death benefit, which can be used to cover funeral expenses.
Simplified Underwriting: Funeral coverage policies often have simplified underwriting processes, meaning they may not require a medical exam or in-depth health questionnaire. This makes them accessible to individuals who might have difficulty obtaining traditional life insurance due to health issues.
Fixed Premiums: Many funeral coverage policies offer fixed premiums, which means the premium amount remains constant throughout the life of the policy. This can help with budgeting and planning for the future.
Funeral Home Choice: Some funeral coverage plans allow policyholders to specify a particular funeral home or provider to ensure their final wishes are met.
Pre-Planning: Funeral coverage can also be used for pre-planning funerals. In this case, individuals arrange and pay for their own funeral in advance, specifying their preferences and locking in current prices to avoid inflation-related cost increases.
Final Expenses: While funeral coverage is primarily designed for covering funeral expenses, beneficiaries are generally free to use the death benefit as needed, which may include settling other outstanding debts or expenses.
Beneficiary Designation: The policyholder designates a beneficiary who will receive the death benefit upon their passing. It’s crucial to keep the beneficiary designation up to date to ensure the funds go to the intended recipient.
Policy Terms: Funeral coverage policies can vary in terms of coverage amount, policy term, and flexibility. Some policies may have limited coverage amounts, while others provide more comprehensive coverage.
Funeral Trusts: In addition to insurance-based funeral coverage, some individuals set up funeral trusts, which are accounts specifically designated for funeral expenses. These trusts can be funded during one’s lifetime and are managed by a trustee.

Cremation or Burial Coverage?

Cremation has been growing in popularity in the United States over the past few decades, and it has surpassed traditional burial in terms of popularity in recent years.² Here are some key points regarding this trend:

Increasing Cremation Rates: Cremation rates in the U.S. have been steadily increasing for several reasons, including changing cultural attitudes toward death, environmental considerations, and cost factors. Cremation is often perceived as a more affordable and flexible option.
Cultural Shifts: While traditional burial has strong cultural and religious ties for many Americans, some people are opting for cremation due to a desire for simplicity, mobility, and environmental concerns. Cremated remains can be scattered, kept in an urn, or incorporated into various memorial options.
Cost Considerations: Cremation is often seen as a more cost-effective option compared to traditional burial, which involves expenses like purchasing a burial plot, a casket, and a burial vault.
Environmental Factors: Cremation is often viewed as a more environmentally friendly option, as it does not require the use of land for burial and does not involve the embalming process, which can introduce chemicals into the soil.
Geographic Variation: It’s important to note that cremation rates can vary significantly by region within the United States. Some states and regions have higher cremation rates than others, influenced by factors such as cultural norms, demographics, and availability of cremation facilities.
Religious Considerations: Religious beliefs can play a significant role in individuals’ decisions between cremation and burial. Some religions and cultures have specific burial traditions, while others may permit or even encourage cremation.
Changing Funeral Industry: The funeral industry has adapted to the growing popularity of cremation by offering a variety of memorialization options, including cremation urns, memorial services, and scattering gardens.

Get The Right Funeral Coverage Now

Choosing funeral coverage online offers convenience and accessibility in a time when many consumers prefer to manage financial matters from the comfort of their homes. Through online platforms, individuals can easily compare funeral insurance policies from multiple providers, review plan details, and obtain quotes, all at their own pace. This digital approach empowers individuals to make informed decisions about their end-of-life arrangements, ensuring that their preferences are met while staying within their budget. Additionally, the online environment often provides access to a wealth of resources and customer reviews, helping users gain insights into the reputation and quality of service offered by different providers. However, it’s crucial to exercise caution, verify the legitimacy of online providers, and carefully read policy terms and conditions before making a commitment to ensure that the chosen funeral coverage aligns with one’s needs and expectations.

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