Cremation insurances compared — Which one is best for your needs?
When you pass away, do you wish for your body to be cremated?
Do you have end-of-life insurance?
While cremation planning is certainly a territory no one feels particularly comfortable talking about and dealing with, it is an important decision to make ahead of time.
The fact is that by having the cost of incineration or funeration/ cremation insured, you can save your loved ones from an unexpected financial loss. But how do you know what type of cremation insurance is right for you? We explore the basics of cremation plans and what services and products are covered by typical insurance policies for cremation.
What is prepaid cremation plan?
A prepaid cremation plan is a contract with a crematory or funeral home in which the cost of a cremation is paid upfront at the current market 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. Therefore using a prepaid plan reduces the risk of financial loss for survivors that otherwise could face higher prices caused by inflation.
It is important to carefully read all the details of this type of cremation insurance coverage so that you know exactly what services it covers, limitations, and guarantees. Furthermore, find out if it offers the assurance of 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 final expenses of cremation at the time of death is known as cremation insurance.
Insurance companies, funeral homes, and crematoriums 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 right away.
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.
What does a typical cremation insurance policy cover?
Just as all types of insurance policies vary, same is true regarding cremation plans. Every insurance policy for cremation will cover specific items that are going to fluctuate depending on the individual’s particular needs. When signing onto a cremation insurance policy, be sure you review all the specifics of what your particular plan covers and what it does not. The following items are typical services often included in cremation insurance policies:
- Memorial or service arrangements
- Confidential advice for personal matters
- Transportation of the body to the crematorium
- Cost of the cremation fees
- Cost of urn
- Doctor’s fees if applicable
- Funeral director’s fees as applicable
- Obituary notice
- Cost for flowers if desired
Compare cremation insurance quotes before signing onto any policy
Thanks to the convenience of the internet, you can shop for cremation insurance quotes right from the comfort of your own home. Get pricing estimates from several insurance providers and compare costs before signing up. Because this can be a particularly stressful decision to make, it’s best to take your time and explore all your options before making any commitments.