Commons questions about prepaid cremation and cremation insurance answered

Life insurance is one of those things that can be hard to talk about or plan for. Nobody wants to think about what is going to happen to their body or their family after they have died.

The grim reality is that none of us will be here forever. If you prefer cremation for your final arrangements, you should cover these expenses ahead of time by purchasing cremation insurance or by paying for cremation in advance.

When you plan ahead, you can choose the type of cremation services that are the best fit for you. Furthermore, you will enjoy the peace of mind that comes from knowing that all your final expenses will be covered, and that this cost will not become a burden on your family members.

As cremation becomes a more popular choice for final arrangements, lots of people are purchasing cremation insurance plans and prepaying for cremations.

While looking at insurance for cremation, some questions unfold. What is prepaid cremation? What is cremation insurance? How does cremation insurance work? Below you will find the answers to these commonly asked questions.

What is prepaid cremation?

A prepaid cremation is a contract with a crematory or funeral home in which the cost of cremation is paid upfront at the going rate, and the services will be rendered at the time of death. Considering the fact that cremation expenses are rising, this option saves money because the price of cremation is locked in.

It is important to carefully read all the details of this type of agreement so that you understand which services will be covered. Furthermore, find out if there will be a full or partial refund in case you change your mind at a later date.

Also check if the agreement will follow you if your location changes. These types of agreements are called “portable” and they can be transferred to other facilities or funeral homes.

What is funeral or cremation insurance?

A small-value life insurance plan that has been designed to cover the cost of cremation services at the time of death is known as cremation insurance. Insurance companies, funeral homes, and crematories offer these types of final expense insurance policies. The policy covers the anticipated amount for cremation and related expenses.

How does cremation insurance work?

If you choose to take out a cremation insurance policy you will pay a small monthly fee for the coverage. The policy will be effective almost immediately after you have signed up. Additionally, at the time of death, it pays out immediately.

Final expenses will be paid out to the crematory or funeral home by the company. In the event that the expenses are less than the amount that has been insured - the designated beneficiary is paid the balance. Likewise, should the final expenses be higher than the amount insured - family members are obligated to cover these additional expenses. Because of this degree of uncertainty, many people are choosing to prepay for their cremation services.