Guide for buying a funeral insurance plan for parents

Guide for buying a funeral insurance plan for parents
Photo: Kzenon, Bigstock

For long, final expense insurance has been protecting the family members from the unplanned expenses whenever a loved one passes away. You too can buy these plans for your parents to avoid any financial stress and in this article, you will know why should you buy such a plan, what are the plans available and how can you buy the best one.

Why buy a plan?

This falls among the most obvious questions that one may ask whenever suggested buying an insurance plan. There are some questions that arise in the mind such as why should I buy a final expense plan or how is this different from a life insurance plan.

The main motive behind buying a funeral insurance is providing a financial security to the loved ones against the funeral related expenses. If you have bought a funeral insurance plan for your parents, you and the loved one won’t need to worry about arranging a funeral as the insurance provider will take care of these things.

In many ways, a funeral plan is different from a life insurance plan. While the first one is a dedicated insurance plan to cover all the funeral-related expenses of the insured, the other plan is made to provide an accumulated cash amount to the loved ones after the demise of the insured.

There are some insurance plans that cover funeral expenses as well but not everyone qualifies for such a plan. Moreover, their premiums are more expensive and it’s not a good idea to pay more when there is a cheaper option available.

What are the plans available?

There are different insurance plans available that provide a cover for funeral-related expenses but most of the final expense insurance companies are offering these two funeral plans.

Traditional Plan

Such plans fall under the most common insurance plans and are heavily preferred by the buyers. Under these plans, the insured pays a fixed premium every month and the insurance provider arranges a funeral after their demise. The loved ones don’t need to worry about the arrangements as well as expenses of a funeral and can grieve in peace. The best thing about this plan is that everyone can qualify for this plan regardless of their pre-existing conditions. This means you may get a cover for your parents who are suffering a serious disease, you can easily get a cover for the same.

Prepaid plan

Another popular option is going with a prepaid funeral plan. Under this, you contact a funeral director nearby your place and pay an amount in advance and they will take of the funeral arrangements after the demise of the specified person. You can discuss your funeral preferences with them and they will offer their plans accordingly. From the plans, you can choose a plan that provides the most coverage for the best price. Here, you need to know that there are some products and services that aren’t included in a plan by default and you will have to ask them to add those to your preferred plan.

Also, the prices will rise in the coming years and there are chances that a specified amount might prove insufficient for a funeral after some 25 or 30 years. In such cases, the loved ones will need to pay the exceeding amount.

Also, there are guaranteed plans offered by funeral homes where they promise to take care of all the funeral expenses irrespective of the price hikes in the future and the loved ones don’t need to pay anything for the same.

How to buy the best plan?

Comparing is the best way to find out the best funeral insurance plan for you. You need to shop around to get an idea which insurance provider is offering a plan with maximum benefits. You can get multiple final expense insurance quotes from different popular and reputed providers in your area.

This can be done by filling a small online form on insurance portals. Soon after that, insurance agents for different providers will start reaching you with the best funeral plans. You can discuss your requirements with them and ask your queries about the offered plans. These agents will to you patiently and will explain each offered plan carefully.

Among the offered plans, you can choose one that’s offered at the best plan.