Funeral or burial insurance comes in different forms and is a type of insurance that?s intended to pay for the cost of your funeral when you die. So is there ever a chance that you will be excluded from having funeral insurance??
One of the benefits of funeral insurance is that is does not require a medical to be conducted in order for approval to be granted, so you should be able to get coverage. It?s important to note that you do need to declare any health issues when you apply for a policy; failure to do so may result in a refusal to pay out when you die. If you do have a health condition then you may be restricted by a provider and you may need to research another provider that can help.?
?What type of funeral insurance can you get?
There are a few different types of funeral or burial insurance that you can apply for.?
Preneed funeral insurance is paid in installments and is linked either directly, or indirectly, to a funeral provider. The premiums that you pay for this type of insurance are usually relatively high.?
Final expense insurance is not linked to any funeral provider and the premiums you pay are generally not as high.?
Burial insurance is simply a small lump sum that is paid out to your dependents for them to spend as they see fit.?
If you wish you can combine the organization of the payment of your funeral costs with the organization of the funeral itself. This is often a big help to those you leave behind when they are already dealing with the grief of losing you.?
Will there be any exclusions or restrictions relating to the payment?
If you fail to declare any health information when applying for the insurance then the insurance provider may refuse to pay out when you die. It should be noted that even when a payment is made it may not be enough to cover the cost of the funeral.?
Funeral insurance is not inflation proof so you need to keep an eye on the cost of funerals. You?ll be surprised at how much funeral costs can rise and you may need to add your policy. You can do this, if you need to, as long as the policy is in place. If you don?t do this then after you die those left behind may be left having to find enough money to pay the shortfall.?
If you apply for funeral insurance then you should usually be accepted but you should declare any health conditions up front. You should also make sure that the policy will pay out enough to cover the full cost of your funeral. When you are taking out a policy you should also take note of any exclusions which may be applied for things such as the cause of death. There are some policies that restrict pay out if the insured person commits suicide. You are probably not planning to do this but it may be worth considering the policy carefully just in case.?
