The Wyatt Dowling way

Should I Get Funeral Expense Insurance?

January 22, 2024

Funeral insurance is a type of life insurance to pay for your funeral or cremation costs. You’ll also hear it called final expense life insurance or burial insurance.

The estimated cost of funeral expenses in Canada range from $5,000 to $15,000. Cremation costs can range between $1,000 and $10,000, depending on the services included.

Without funeral insurance or final expense life insurance, you would have to put that money aside to pay for your funeral expenses or your surviving family members would end up paying for your funeral expenses.

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What is Funeral (Final Expense Life Insurance)?

Funeral or final expense insurance protects your loved ones against funeral or cremation expenses.

Once you have your final expense life insurance, the premiums do not increase and the death benefit does not decrease.

Your beneficiaries can use the death benefit to pay for your funeral expenses, such as a memorial service, embalming, casket, or cremation services.

The death benefit can also be used to pay debts, mortgages, or property taxes, which is why it is also called final expense insurance.

Funeral insurance doesn’t have an end date and lasts as long as you do, provided you pay the premiums.

How old should I be to get funeral insurance?

Applicants are usually between 40 and 80 years old.

Your burial or final expense life insurance policy should be large enough to cover the kind of funeral or cremation that you want. To get as accurate an estimate as possible, you should pre-plan your arrangements and calculate any debts.

Generally, funeral insurance is not meant for people who are raising their families and need coverage for financial obligations such as mortgages, childcare, tuition, and income replacement during their working years.

What if I already have an illness?

Typically, you can qualify for burial insurance even if you have a serious illness, although there may be a waiting period on the policy.

Funeral insurance has smaller payouts than most permanent life insurance policies but is also less expensive.

Do I need to get a medical exam?

Funeral or final expense insurance doesn't require a medical exam. You may be asked some medical questions, though.

It can be a low-cost option that will give you and your loved family members peace of mind.

You should calculate your funeral or cremation costs and any outstanding debts to help determine the right amount of coverage for you.

Pros of funeral insurance:

• It covers your funeral or creations and final expenses and doesn’t burden your loved ones.
• Premiums for burial insurance are usually dependent on your age at the time of purchase.

Cons of funeral insurance:

• The amount beneficiaries are paid may not meet all of your final expenses.
• The older and less healthy you are, the higher your rates will be for a given amount of final expense life insurance.

Funeral insurance policies typically have a death benefit amount ranging between $5,000 and $50,000. By contrast, many term life insurance policies include a death benefit of over $100,000.

Funeral insurance is designed to pay for your final expenses.