You’ve heard it before: There a few other guarantees in life other than taxes, changes…and death.

There’s no question that death is a delicate topic, but it’s also an unfortunate reality. But with careful planning, it is possible to plan for final expenses before they are necessary. This can mean the difference between enjoying those final days and dealing with logistics when you’d rather be with family.

If you’re concerned about the financial burden these expenses bring along, you can be proactive by purchasing funeral insurance.

When Disaster Strikes

I once knew a family that lived near my parent’s house who had to deal with the difficult task of burying a loved one. Once the services were over and the burial was complete, I knew this family was struggling to regain a sense of normalcy in their lives. The saddest part was that a few months after the dust had settled they received some rather large bills in the mail. These included hospital expenses, funeral arrangements, and even floral costs.

The eventual end of their story was they went deep into debt to cover the funeral expenses—after wiping out their savings to cover the other bills. We had a community fundraiser to assist them with their needs (they had two small children to care for), but I’m pretty sure that small sum of money raised wasn’t nearly enough to cover the shortage. Had the family purchased funeral insurance, a lot of this disaster could have been avoided.

What is Funeral Insurance?

Basically, funeral insurance is a type of life insurance policy that covers the costs associated with end of life arrangements. These can include everything from caskets and funeral service costs to flowers and burial plots in the cemetery.

You can take out a policy for anywhere from $5,000-$50,000. The money is typically assigned to a beneficiary who will in turn take care of the arrangements as they are set/agreed upon in the policy documents.

Tips for Buying Funeral Insurance

If you’re considering funeral insurance, first do your due diligence to ensure that you’re not already covered under another type of coverage such as your life insurance policy. Once you know what you’ll need to cover, shop around for the best terms and price that will match your needs. One great advantage of policies such as this is that you typically have 30-60 days to review the policy. During this time, you are free to vacate the policy without consequence if it turns out that you’re not satisfied with the terms or the way things have been drawn up.

Deciding to Buy

When you decide to purchase a funeral insurance policy, there are some easy steps to take to ensure there aren’t any issues moving forward for you or your loved ones. First, make sure everything is in writing. This includes all of your wishes, how money should be allocated, etc. Be clear and concise so there’s no room for interpretation. When the documents are drawn up, be sure that the originals are signed in-person.

Would you buy funeral insurance?