Did you one-third of Canadians had challenging end-of-life conversations in 2020? Plan ahead and talk to your loved ones about funeral expenses. If you’re considering getting a funeral insurance plan, we’re here to help.
This guide will explain why you might want to begin researching funeral insurance companies. You’ll learn why people get insurance coverage and who it benefits.
Ready to learn more? Keep reading.
What Is Funeral Insurance?
Funeral insurance helps your family make decisions about funeral arrangements without worrying about costs. Basic funerals still cost thousands.
Funeral insurance will cover the cost of end-of-life expenses. Your insurance provider will cover the costs of a funeral, for example. You could get an insurance plan for a certain amount.
You’ll pay a recurring expense or small premium for your policy. Like keeping your homeowner and car insurance in effect, you’ll do the same with funeral insurance.
What Will Get Covered?
Funeral insurance is a kind of permanent life insurance. The traditional permanent life insurance policy gives your family income replacement. A funeral insurance policy covers specific end-of-life expenses.
Funeral insurance will often have smaller amounts paid out compared to permanent life insurance. It’s going to cost you less, as a result.
Sometimes, people won’t apply for the insurance because they think they won’t qualify. These policies are a lot easier to get compared to traditional life insurance.
A funeral insurance policy will get used to cover end-of-life expenses. This could include a memorial service in a funeral home. You could also use it for viewing or cremation. Also, it could cover medical bills.
The amount you choose will determine what it can cover. If you select a few thousand dollars, it will cover a cremation. But if you pick a more significant premium, like 10,000, you could have a lovely memorial service.
Why Should You Get Funeral Insurance?
Funeral insurance doesn’t have a high monthly premium, and you won’t need to get a medical exam. Also, the policy’s permanent and can last your lifetime.
Some drawbacks include if you end up living longer than you expected. You could end up paying more in premiums than the value of your benefit.
You can choose an affordable plan. Some people will pay as little as a few dollars each week early on in life.
You could also get funeral insurance later on in life. You can pick a policy geared to an older audience if you get older.
Your final burial insurance cost will hinge on if you will get a medical exam. You can get burial insurance without a medical exam but will pay more money. You will also answer some health questions.
If you show insurance companies you’re healthy, you could get a better rate.
You Could Get a Standard Life Insurance Policy
A standard life insurance policy, also known as term life insurance or traditional life insurance, offers funeral insurance in Canada. You will need a medical exam and answer a health questionnaire.
If you don’t have pre-existing health conditions, consider this option.
What About Simplified Life Insurance?
Do you have a pre-existing health condition? You could look into applying for simplified life insurance.
You won’t need to go through a medical exam to get funeral insurance in Canada with this insurance. You will still need to answer a medical questionnaire.
The death benefit will end up being smaller. Also, a lot of simplified issue plans will have a waiting period. If you pass within the two years, the death benefit won’t go to your family.
Look Into Guaranteed Issue Life Insurance
Do you have a severe medical condition? Don’t worry; there are options available. Consider applying for guaranteed issue life insurance.
You won’t need to answer a medical questionnaire or undergo a medical exam. Anyone will qualify for this kind of insurance and funeral insurance. Yet, you will have to pay high fees and have a smaller coverage.
There’s a two-year probationary period. If you die within two years of getting this policy, your claim won’t get paid.
Even if you were declined life insurance before, you would remain eligible for this plan. You can take control over financial decisions for your future. Take care of final expenses like funeral costs or medical bills.
What to Consider Before Getting Insurance
To get excellent insurance and funeral insurance, try to remain in good health. Non-smokers will get a better deal, and so will those with a normal BMI.
Know what your funeral expenses will amount to so you buy the right coverage. Make a plan. Otherwise, there could end up being high costs. You don’t want your family to get stuck with these expenses.
Also, if you qualify for the Canada Pension Plan, you might also receive other benefits. Check out the death benefit for more information.
If you’re in good health, look at applying for traditional health insurance. These insurance policies tend to be more affordable.
You could work with an insurance broker. Brokers will be able to access different policies from various insurers. The broker will end up shopping around to find the best insurance policy.
Start Applying for a Funeral Insurance Plan
Consider investing in funeral insurance so you can protect your loved ones down the road. We hope this funeral insurance plan was helpful. If you want to get burial insurance, talk to a local provider in your region.
You should think about what kind of funeral you would like, so you have enough coverage.
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