Does Your Life Coverage Cover Funeral Costs?

Life Insurance To Cover Funeral Expenses

Check out your life policy to see if the funeral expenses are covered and if it is the best plan for you. In Australia, you will have to check a number of options to cover the expenses of the funeral. A funeral cost, however, is not the same for all funerals and differ with the type of funeral and the culture and requirement of the funeral.

Will My Life Coverage Cover Funeral Costs?

If you are looking for your life insurance to cover funeral expenses you should know that some policies cover basic funeral expenses. Your life insurance may or may not cover all your expenses so you should make sure you have looked into all the options.

How Will my Life Coverage Pay for my Funeral Expenses?

When you file an application for life insurance, you are given many options to select from according to your own situation. You will have to consider all the obligations that you need coverage for in case of your death. These include:

Any Mortgages
Outstanding Rents
Food Expense
Bills to Pay
Outstanding Loans
Any Taxes
Medical Bills
Education Cover for dependents
And your funeral costs

When calculating this amount, the policyholder could also look for funeral expenses and look for the coverage option. This way you may set aside some funds to cover your own funeral with the policy and do not burden your family to bear the expenses of your funeral.

Can Life Insurance Provide More Benefits to Cover Funeral Costs?

A Funeral Expenses Benefit plan allows the insurance company to offer you an early benefit payment to cover the funeral expense. This amount will be taken from the total sum coverage.

The Terms and Conditions of the Funeral Expense Benefit

The terms will differ from one policy to another. An example of this case is;
If a policyholder dies during the tenure of the policy, he will be entitled to a payment of up to 10% of the policyholder sum-coverage and $25,000 will be released to his family to cover the funeral expenses. A death certificate is required by the insurance firm, and the payment will be deducted from the policyholder life coverage policy.

Terminal condition benefits

Many insurance companies offer terminal illness coverage by offering advance payment to the policyholder. This coverage is applicable in instances where the policyholder is diagnosed with the terminal condition and has 12 or fewer months to live.

To get these benefits you will have to hold the diagnosis in the period of the policy and provide all medical proofs and documents to the insurance service.

So why Apply for a Simple Funeral Coverage?

For people who are looking only to cover the funeral expenses, this is a good policy to have. For those people who are classified as high risk, the policy is a secure option to hold.

Check all the terms of the policy and understand how the premiums will be deducted. A good plan is one where the premium has a cap after reaching a certain amount.

You should be aware of the blueprint of your policy and how much the insurance company will pay for your funeral. Meanwhile, it is a good idea to do some preparation for the funeral costs and make some saving as at times the funeral expense may go beyond your coverage.

For more than 30 years, we have helped West Australians comprehend protection so they are more arranged for what’s to come. Stress less and live more by being better prepared for tomorrow. Take your first step by requesting a free consultation from Precept Financial Services.

Any advice in the article is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters.

Please see our Financial Services Guide for more information.

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