There are three main types of Funeral Insurance Plans: term, whole life, and medically underwritten. The first type, term, may be cheaper than the other types, but you have to choose a term period to get a benefit. Typically, this period is either 10 years or 20 years. If you want to renew your policy, you may have to pay higher premiums, and the monthly benefits are not guaranteed. Also, there are some drawbacks to prepayment plans, such as the limited benefit amount.
How to Choose Funeral Insurance Plans
The second type of Funeral Insurance plan is known as a whole life Funeral Plans Company. These plans are more expensive than term insurance, but the benefit is guaranteed. Once you die, the policy pays out. You can choose to leave instructions for who should receive the payout and how it should be handled. In most cases, you can choose between whole life and term plan, and you can choose a monthly or yearly premium. You can also choose whether or not you want to pay the premiums monthly or yearly.
The cost of Funeral Insurance Plans can be very expensive, but a prepaid policy can give you peace of mind. It covers your funeral expenses regardless of who dies and can be assigned to a funeral home. A pre-need plan allows you to choose what your beneficiaries will receive. A prepaid plan pays for the cost of the service and is generally paid out within two or three business days. While this isn’t as convenient as a prepaid plan, it can help your family make final arrangements without having to make difficult financial decisions.