Funeral prices have been rising for the last ten years in Australia, and may continue to climb.¹ Planning a funeral can be a heavy burden on families, and rising costs only makes this more difficult. In many situations, the finances haven’t been sorted and loved ones are left digging into their savings or going into debt to pay for everything. But there are two easy solutions – and they could have many seniors jumping in relief. The solutions are life insurance or funeral insurance, and they can cover the entire cost of a funeral for an incredibly affordable price.
Planning a funeral is hard work. There are countless decisions that need to be made, administrative tasks to complete, a eulogy to write, vendors to talk with, and more. When you add this on to the mourning and the financial burden of a funeral, it can be an incredibly stressful time for families.
The average cost of a funeral with cremation is around $7,420.² The average cost of a burial funeral is $19,000 for the funeral service, headstone, and interment. It’s a lot more expensive than you might think. And this doesn’t include the stress that goes into planning everything.
To make matters worse, funeral costs are continuing to rise. In Sydney, the prices of burial plots doubled from 2012-2017.¹ And there’s no doubt cremation prices will go up due to inflation and increasing labor costs. Also, the economy doesn’t always go up every year, and in times of recession, it can be even more difficult to afford these rising costs. It’s important to be prepared, whether the economy is good or bad.
Fortunately, there’s a great solution to help ease this burden – getting insured with life insurance and/or funeral insurance.
Life Insurance & Funeral Insurance
Life insurance is great because for a small monthly fee, this insurance can cover not only your funeral expenses but can also pass on some wealth to your family. It’s important you make sure you get a good enough policy to cover your funeral however.
Life insurance can certainly help make things financially easier following your passing, and it is definitely something worth getting for most people. In many cases, a good enough life insurance policy can cover the costs of a funeral and more. However, there are some cases where funeral insurance is something you’ll want as well. Why?
1. Term life insurance expires. Most of the time, if you live to a certain age, term life insurance either expires or requires paying a substantially higher premium.
2. Life insurance tends to have strict health requirements. Funeral insurance doesn’t. Often, if your health is not good enough you will either be refused for life insurance or forced to pay higher premiums. Funeral insurance is a different type of insurance so this isn’t something you’ll have to deal with.
3. It’s easy to underestimate the amount of life insurance needed. As mentioned, funeral costs are high, and life insurance proceeds alone may not be enough to cover both a funeral and the needs of your family.
The good news is that funeral insurance policies can be inexpensive, easy to set up, and very straight-forward. You can often get funeral insurance plans for a small amount per month, and they can cover up to $15,000 depending on your selected plan.³ There’s usually no expiration date either.
Important – Do Your Research!
While there are many great benefits to both life insurance and funeral insurance plans, doing your research cannot be understated. Not all plans are equal, and some may have terms you do not agree with. For this reason, it is important to select your policy wisely, and make sure that you understand the terms and conditions of your policy.
Also, make sure you can continue to afford to pay the premiums in the plan you sign up for. If you cannot afford the premiums, you may lose the insurance. Finally, compare offers and plans so you can be confident that you’re getting the best possible insurance for your needs.
Start Now By Looking Online
The best way to get started with finding an appropriate life or funeral insurance plan is to look online. It’s very easy to compare policies from many different providers by searching online, and all of the different plans are easy to filter through. You can usually customize your policy as well to suit your specific needs.
Having a good life and funeral insurance policy can help to provide families with some relief and financial security during a dark period. Not only will the funds be there for a nice funeral – but some of the financial burden will be lifted from loved ones. It makes sense to do some research and find an insurance policy that is right for you.