Why Pre-paid Funeral Plans and Funeral Insurance are Different?

Funeral plans are always confusing. No one wants to neither think about nor buy it. But lately people understand the importance of Funeral policies. Traditionally, any funeral expenses can be quite over burdening the families with expenses reaching $15000. For that purpose, Insurance companies have come up with idea, which can ease your funeral expenses. Funeral policies come in two types pre-paid funeral plans and funeral insurance

Prepaid Funeral plans:

These are like tailor made where in you can select and personalize your day however you wish in detail. Over the decade, the cost of funeral has gone up. This plan gives respite to the family members and loved ones who can bid you farewell without thinking about the cost factor.

Funeral Insurance:

Funeral Insurance is the cost paid for funeral or burial paid in lump sum to cover the funeral expenses in return for a premium paid half yearly, yearly or quarterly.

What is different?

Pre-paid insurance works like a normal insurance, except that it is purchased in advance. Funeral Insurance can be purchased for the amount and from the funeral house of your choice, for a yearly premium.The advantage of pre-paid insurance is that family members are relieved from the cost of funeral and the person who takes the insurance can plan the funeral according to his specification.

However the downside of pre-paid funeral plan unlike funeral insurance is that, you get the sum what you agreed to. For example, if you agreed pre-paid for $10,000 and the expenses surge to $15000, then $5000 has to be paid for your pocket. Funeral Insurance is different in a way that you get the amount on the face value provided all the premiums are paid on time. With Funeral expenses, the beneficiaries usually get the money claimed. And they have more coverage for the expenses incurred like medical, prescription drugs, travelling expenses and other debts.

Plan for your funeral, when you are alive, the way you had always wanted. Die with dignity. Death is inevitable, so choose your plan – either pre-paid or funeral. Both have their pros and cons.