Insurance related to your funeral and the final expenses of your life is different from other types of insurance. Other forms of insurance are to help financially if a future event occurs. This is true even for life insurance. Term life insurance is for specific period of time, and if death has not occurred, the policy expires. With funeral insurance, you are paying for an event that will occur. In fact, this type of insurance has some attributes of a prepayment.
There are many advantages to this type of insurance. If you die before you have accumulated enough money to pay for everything, it is covered by the policy. However, if you were to make your payments long enough, eventually you will have paid for everything. Another advantage is that your loved ones will not have to worry about the specifics of a funeral. You can plan everything ahead of time. Surviving loved ones are too bereaved to make many of the decisions necessary after your death, but by having everything planned ahead of time, you can provide relief to them at this time. You also can get what you want and not what others will choose for you.
You can decide on the method of burial as well as where you want to be buried. This includes burial or an interment in a mausoleum. You can also choose to be cremated. In some cases, you can lock in certain prices for part or all of your funeral expenses. This is important because the cost of funerals keeps climbing and having funeral insurance is the best way to keep the cost down.
There are some people who choose to buy a small life insurance policy instead of funeral insurance, and to be certain, this is a better idea than doing nothing. However, life insurance will only pay up to the amount of the policy, and this may not be enough. Even if it were enough, there is still the issue burdening you family with all of the details of the funeral, and they may not know what your wishes are.
There are different types of funeral insurance to consider. Some are available from national insurance carriers that have contracts with a local funeral business near your home while other funeral companies may sell insurance directly from their local funeral business.