Funeral insurance is an important thing to have, still many individuals do not get it. Also known as final expense insurance or burial insurance, funeral insurance is undoubtedly the cheapest way to protect the family of your final expenses after your death. If you had paid for a funeral lately or know somebody who has, you know how expensive funerals and final expenses are. Being aware of your financial situation, if you know your family can face difficulties while playing your funeral expenses, it makes sense to buy a funeral insurance in NZ.
In this post, we will be sharing with you all the important details you need to know about funeral insurance so that you can make an informed decision.
What is Funeral Insurance?
Funeral insurance covers the cost of your funeral, cremation or burial. It covers medical costs, end-of-life expenses and burial costs. Funeral insurance is a great product for people who do not have another way of paying their final expenses or whose families cannot pay expenses on their behalf.
Funeral insurance is used as a way to arrange the funeral costs in advance so that the burden is not left to the families or beneficiaries. There is no fixed standard type of funeral insurance coverage. The amount of the coverage will depend on how much you want final expenses to cost. The lump sum amount of funeral cover would be paid within 48 hours on receiving the completed paperwork upon the death. The quick payout can help you with the urgent funeral arrangement, to settle any final debts or provide a financial cushion to your family at the time of the need.
How to Apply for a Funeral Insurance Cover?
Applying for a funeral insurance cover is relatively easy and quick. Your acceptance is guaranteed as long as you are a resident of New Zealand aged between 16 to 75. Funeral cover is designed to be paid quickly without requiring to check previous health declarations or review the circumstances of death.
The cover will include a lump sum amount on the death of the life insured
Funeral insurance offers flexible premiums which can be paid weekly, fortnightly, monthly or annually. Depending on the type of funeral insurance you have applied for, you are also entitled to optional covers also, which may include- household expenses, accidental death expenses and accidental serious injury expenses, etc.
Real Life Examples of Funeral Insurance
The sudden demise of the wife of a customer made him spend all of his savings on the funeral. Soon after the incident, he and his family realized the importance of funeral insurance and the man bought one for himself. After sometime, the gentleman also passed away. At that time, funeral insurance helped the ailing family members of the gentleman to meet all funeral costs easily and quickly.
Such incidents make us realize the fragility of the life. If you think your family is not well off to handle the inevitable costs of the funerals, it is a good idea to invest in funeral insurance.
Tips to Buy Funeral Insurance
When it comes to buying funeral insurance for your needs, there are a number of choices to make. Right from selecting the right amount of coverage to choosing a right company to trust the job with, the process can become overwhelming if you do not pay attention to the details. But the good news is, once you know the process, everything will work like a breeze. Mentioned below are several tips that would help buy a right type of funeral insurance.
The first step is to determine your final expenses. It is recommended to figure out how much you will need to cover your end-of-life expense. These expenses may include- your medical bills, living bills, credit card bills, burial costs, etc.
The second tip is to determine how much money you will leave behind to cover the expenses. You can also get in touch with a financial advisor to help you figure this out. If you think you do not have enough funds to cover your end-of-life expenses, invest in buying a right funeral insurance policy for you.
If you get to explore online, you would find that there are different types of funeral insurance policies available. Take time to review the features of each insurance policy so that you are able to decide on the right type of policy.
When you have done all the assessment and have decided to buy funeral insurance, we recommend you to buy from a reputable and reliable company. Do some homework in knowing the reliability of the company before you trust the job with them.
Those were some useful details you need to know about funeral insurance. If you are unaware about the process of buying a policy, you can get in touch with the experienced advisors who can help you find the best funeral cover plans available. The experts will provide you with comprehensive comparison information to make the process of finding the best funeral insurance plan easy for you.