Is It Smart to Have Funeral Insurance?

funeral insurance

Unless you have recently been involved in burying someone you most likely have no idea how much a funeral actually costs. Depending on the choices one makes, a funeral can cost anywhere between $5,000 and $20,000. Personally I know that the coffin we purchased to bury my mother was $7,000. And that was just the beginning of a very expensive process.

We all know that one day we too will need a funeral of some sort. Of course some are more elaborate than others. Have you put any thought into your funeral, such as whether you will be buried or cremated? If you will be buried, which cemetery will you be laid to rest at? The cost of all of these choices adds up pretty quickly.

You have several options available to you to help you deal with your funeral costs.

Prepay for Your Funeral

Many years ago my parents and grandparents spent some time preplanning and prepaying for their funerals. They wanted to make sure that they would each have the type of funeral that they wanted and that they would all be laid to rest side by side in the cemetery.

While it seemed creepy to us kids at the time, having all of these details sorted out upfront, allowed us to grieve their passing without having to worry about all of these financial details. One of the other advantages of prepaying is that it guarantees the cost of the funeral. Once all of the products and services have been paid for, the funeral home assumes the responsibility for all price increases between today and the day you die.

Life Insurance

If you are not able to prepay for your funeral, or do not want to prepay for your funeral, you most likely have the option of using a portion of your life insurance to pay for it. When you purchase your life insurance policy make sure to take into account the cost of your funeral as well as the amount of money you would like to leave to support your family.

Your will should include all of the instructions on how you want this to be handled on your behalf.

Funeral Insurance

Funeral insurance can be a very affordable alternative. Again, it assists your loved ones when the day comes and they need to sort out your finances and pay for your funeral expenses.

You can pay monthly premiums for your funeral insurance, just like you most likely do for your car insurance.  In some cases funeral insurance can also be used to pay off additional medical expenses or any other costs that were incurred before and after your passing. And if you purchase more then what your funeral actually costs, the balance of the money will be paid to your designated beneficiary.

You will always see stories about someone that dies suddenly and his or her family is left penniless because the person either didn’t believe that they needed insurance or never got around to buying insurance to cover their expenses and provide for their loved ones. Don’t make the same mistake with your family.


    • Corina Ramos

      Corina Ramos 08/30/2013 7:01 p.m. #

      Gosh...this one got me to thinking about our final arrangements. Just the thought of having to discuss it and make the decisions feels weird but it's something we have to do at some point.

      My grandmother didn't have all her final arrangements taken care of and I remember my mom having serious talks with my aunt and uncles. It was hard on them.

      It's something we hate to have to discuss and do but we have to make sure we don't leave such a heavy burden on the loved ones we leave behind.

      Great post my friend!

      • Sicorra

        Sicorra 09/02/2013 11:41 a.m. #

        It is a difficult thing to do, but very important. If we leave the decisions for others to make it may not be what we wanted and it can, as you mentioned, be difficult for the family members left behind.
        If they are left to sort things out on the funeral should be done, they may not agree, and then that can cause bigger issues.

    • Christy Garrett @ Uplifting Famiilies

      Christy Garrett @ Uplifting Famiilies 08/30/2013 9:07 p.m. #

      Great information. This is something I haven't really thought about at this point.

      • Sicorra

        Sicorra 09/02/2013 11:42 a.m. #

        It is hard to thing about, but you just never know.

    • pauline

      pauline 08/31/2013 2:11 a.m. #

      I would hate to be a burden to my family. I have funeral insurance with my credit card, but a burial service where everything would be taken care of would be even easier.

      • Marissa @ Finance Triggers

        Marissa @ Finance Triggers 08/31/2013 10:10 p.m. #

        I feel the same way, Pauline. We can lessen the pain we give them when we die by having enough money for our funeral expenses.

      • Sicorra

        Sicorra 09/02/2013 11:44 a.m. #

        Yes, having it all pre-arranged is easier on everyone. That is good that you have coverage through your credit card too.

    • krantcents

      krantcents 08/31/2013 8:17 a.m. #

      My Mom prepaid for her funeral expenses and it was the best thing she did. Beyond the financial implications, it makes it far less difficult for the survivors. It is never an easy task, but it is more difficult at the time of the funeral.

      • Sicorra

        Sicorra 09/02/2013 11:46 a.m. #

        It does make things so much easier. The person has things exactly the way they wanted and the other family members do not need to make any decisions.

    • Michelle

      Michelle 08/31/2013 9:25 a.m. #

      Funerals are very expensive, so having insurance would be very helpful for your loved ones.

      • Marissa @ Thirty Six Months

        Marissa @ Thirty Six Months 08/31/2013 10:08 p.m. #

        That's true, Michelle. That's why we all have it.

      • Sicorra

        Sicorra 09/02/2013 11:47 a.m. #

        Every piece of a funeral adds up quite quickly. Most people do not realize that.

    • Hadley

      Hadley 09/11/2013 12:43 p.m. #

      It's a good idea to plan ahead for the inevitable so we don;t leave our family with the financial burden of paying for our final expenses. Although funeral insurance plans can be affordable options, you may want to consider life insurance, which allows your family to use the proceeds to pay for all of your final expenses, and they can use any left over as they see fit. Just explain to the beneficiaries who gets how much, and what portion of the death benefit goes to pay for your funeral and burial expenses.

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