Today’s topic has nothing to do with creative, art or designs but it is more about lifestyle choices. This topic came up when I did a coaching session with one of my clients and we talked about the different type of insurances that are important to us, such as Health Insurance, and Life and funeral insurance.
So do you know what is the different between Life and Funeral insurance?
A lot of people assume funeral insurance is the same as life insurance since both result in a pay out at the time of death. This huge misconception has led to many people making wrong decisions when opting for an insurance plan.
Both funeral and life insurance are great options if you want to provide benefit to people dependent on you after your death, or if you would like to be financially stable even when suffering from a terminal illness. Both of these products offer numerous benefits, and that is how you know which policy to choose.
Life Insurance
Life insurance is when your beneficiaries receive a lump sum amount which they can use to their benefit while you are no longer there to support them. The premiums for life insurance are usually a lot more affordable as compared to those paid for funeral insurance cover. People who opt for life insurance policies don’t have to deal with any paperwork; they simply have to enlist their beneficiaries when they opt for a plan.
However, there are some things that you have to consider about life insurance that you may not necessarily like. Coverage can be expensive if your health condition is poor at the time when you opt for the policy. You will also have to go through a tedious medical examination. If you are an elderly person who can’t make it, this can be a huge let down for you as well.
Funeral Insurance
Funeral insurance is the money paid out to your family at the time of your death so that they are not burdened with the expense and cost associated with arranging a funeral. Benefit payment is processed once your claim is approved.
You usually do not require to undergo a medical examination. As a result, it is well-suited to a lot of folks who suffer from health issues, those who may find it difficult to come across affordable life insurance, and those who cannot afford it at all.
With a funeral plan, you are able to ensure that the cost of your funeral is fully covered, no matter when you die. This gives you a peace of mind.
The only drawback for some people with funeral insurance plans is that they may opt for it and live up to a ripe old age, only to find that they have spent a fortune on the insurance cover, which would probably cost less if someone paid the funeral expenses from plain old savings.
Problems regarding choosing either insurance type over the other are present as well. For example, if you do not opt for a funeral benefit along with your life insurance plan, your loved ones still have to save money for your funeral as the life insurance money will only be paid out after the funeral. In the same way, the drawback of adding funeral insurance is it can be super expensive on its own as funeral plans have typically higher premiums than life insurance premiums.
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