What is Funeral Insurance?
A Funeral Insurance Policy gives your loved ones a lump sum to pay for your funeral. Like any other insurance, you fix the amount of cover and then pay regular premiums (either weekly, fortnightly, or monthly)
What are the Pros and Cons of funeral insurance?
- Immediate cover (watch out for exclusions and exclusion periods)
- Payments are broken down into regular premiums – helps with budgeting
- You keep paying for funeral insurance until you die
- Funeral Insurance can cost a lot more than what your family will receive
- If you stop paying your premiums, your insurance will stop, and you will probably lose all of the money you have already paid
- As your income changes, you may struggle to pay your premiums which will continue to increase
- Be careful what you sign up for – read the terms and conditions carefully – all policies differ, and many have many exclusions
- Your loved ones may not receive the money straight away – this will cause unnecessary stress