7 things to know before purchasing funeral insurance– Get a quote in minutes

What is funeral insurance for?

“Protecting his family by avoiding paying for his funeral” is the main argument of organizations that market funeral contracts. Indeed, this type of contract makes it possible to provision a capital which will be used to cover the costs of the funeral when the time comes. In addition to the pain related to death, the family does not have to bear this expense, the amount of which is not negligible: on average 3,500 euros.

“Prepare in advance for your exit” is the second argument of funeral insurance since they allow you to define how the burial will take place. Thus, the subscriber can specify in a funeral agreement his wishes for the ceremony: burial or cremation, choice of coffin or funeral urn, transport, flowers … Generally, the subscriber who defines the nature of the services also designates a specialized company of funeral directors to carry them out.

This is one less burden on the family who, in order to respect the deceased, may be hesitant in choosing the benefits or even not have the will to do so. In addition, it is not always easy to find one's way when, for the same product, the prices vary from simple to triple depending on the funeral home and the regions.

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How much does funeral insurance cost?

Buying funeral insurance doesn't have to be very expensive. Especially since it is up to the subscriber to define the capital he wishes to provision. The amount of the contributions depends on the method of payment:

One-off payment : the defined capital is paid in a single contribution. 5000 euros is a good average for a funeral contract. Rather advisable for the elderly.

Temporary payments : we choose to pay monthly payments for a defined period (5, 10 or 15 years). Count around 40 euros per month for a capital of 5000 euros over 10 years. Rather recommended for young seniors who want to build up capital gently.

-Life payments : a capital is defined and monthly payments are made until his death. Rather recommended for people whose age approaches that of death statistics. If you are still young, the risk is of paying more than the defined capital, the money overpaid is dead. Conversely, the risk for the insurer is to pay too quickly a capital which has not been adequately provisioned by the monthly payments. This is why the monthly payments are higher, 50 to 70 euros per month for a capital of 5000 euros.

What are the guarantees of funeral insurance?

The capital raised can be used to finance inter alia the coffin, the ceremony, the grooming and the preparation of the body, the transport of the deceased, the tombstone, but also the announcements, the digging of the pit and the concession – it ie the plot of land rented by an individual to the town hall to bury the deceased. Some funeral companies even offer secondary services such as assistance with administrative and legal procedures, repatriation of the body and financing of the travel of relatives to the place of burial. In all cases, the guarantees provided must be strictly specified.

>> Read also – Funeral insurance: be careful to take out the right contract!

Who are the beneficiaries of funeral insurance?

Funeral insurance is a fairly flexible contract. In the same way that we can define the capital and how to constitute it, the subscriber can specify the beneficiary (ies) in the funeral agreement. He can choose a relative (or several) who will receive the capital, in order to pay for the funeral. If there is excess money, beneficiaries are required to share it.

If the subscriber personalizes his funeral, he generally designates a funeral director as beneficiary. It is to her that the insurer will pay the capital and it is she who will perform the benefit according to the wishes of the deceased. Always if there is excess money, the claimant will then return the amount to the designated relatives.

Do not confuse funeral insurance with death insurance

For the uninitiated it is quite easy to confuse funeral and death insurance. Funeral insurance is linked to the financing of funerals, or even to their organization, while death insurance provides for the payment of a capital or an annuity to a beneficiary (or several) in the event of the death of the insured before the date the end of the contract. In other words, the contract covers a fixed term (10 years, 15 years, 20 years) and an amount to be paid to the beneficiary. These two data, as well as the age at subscription, determine the amount of contributions. If the contract covers, for example, 10 years and the insured dies after 8 years, then the agreed sum will be paid to the beneficiary. On the other hand, if death does not occur after 10 years, the sums incurred will be lost. This contract is rather recommended for people still young who support the home and want to protect their family in the event of death.

Finally, if you want to build up capital for your loved ones, you should turn to life insurance: regardless of the time of death, the beneficiary will receive the capital saved.

What to check before purchasing funeral insurance

It is understood that the subscriber will no longer be of this world to verify that the quality of service is up to his expectations. However, it is possible upstream to check certain key points that make the quality of a funeral contract:

Expenses : In general, pension funds apply payment fees and annual management fees. Please note these costs are deducted from the capital and can be exorbitant (sometimes up to 30% of the capital). So check that they will only amputate the capital reasonably. And also that the rest will be enough to finance the funeral.

Capital appreciation: it is generally very low, while funeral costs have increased sharply in recent years. Make sure that the defined capital will be revalued all the same correctly so that, when the time comes, it will cover the costs of the funeral.

The waiting and payment periods: a waiting period is applied to the subscription of a funeral contract. This means that for a few months (sometimes up to 1 or 2 years) no capital can be paid if death occurs. This waiting period should not be too long, as should the period of payment to the beneficiary at the time of death. Some organizations promise a quick payment (48 hours) but ask in exchange for many supporting documents. This is why it is better to warn your loved ones that they are beneficiaries to avoid them paying the funeral costs and having to wait a long time for reimbursement.

Warranty exclusions: people who commit suicide during the first year after taking out funeral insurance are generally not covered. Just like people who signed a contract after learning of their illness and hiding it from their insurer. Note that death resulting from the use of drugs and alcohol is also excluded from the guarantee.
