Everybody has the deep-rooted thought of not being a burden to our loved ones when our time to leave this world arrives. The need to provide those we love with the means to carry on undisrupted despite our absence is a natural inclination which is why some of us take up some form of insurance. There are many forms of insurance that cover a range of uncertainties such as life insurance, disability insurance, unemployment insurance, accident covers, fire insurance and the list goes on. The primary objective of insurance generally revolves around being able to cover costs when the undesired and the unexpected transpire.
Given this fact, and as strange as it may seem, many of us somehow overlook the cost of funerals which can be financially burdensome due to the hefty cost of a decent funeral that could cost anywhere between $10,000 to $20,000 in Australia. Thus, owning a funeral insurance policy would be in effect one of those things that we could do in order to reduce the financial burden that our passing would place on our family. Nevertheless, as it is with any other insurance investment, careful consideration must be given when it comes to selecting an appropriate and reliable insurance provider who will meet your expectations even in your absence.
The benefits of funeral insurance are vast and cost effective, however there are still some things you need to consider before taking out a policy. The most crucial element that needs to be considered during the decision-making process of choosing the right funeral insurance provider is reputation. Doing your homework by running a background check on how long the funeral insurance company has been active and their respective reputation for being able to deliver on promises is very important. The second most crucial element is the funeral insurance policy. Be meticulous about the offerings made within the policy, be critical about the underwriters, be certain about the waiting period and last, but not least understand and note the exclusions before deciding.
Another factor that you should peruse to ensure that everything that takes place smoothly with regards to the insurance is the claims process. Examine the company’s PDS (product disclosure statement) thoroughly as it will indicate what actions need to be taken and what will be required from beneficiaries for claims. Everything from the duration taken for claims to be processed to the structure of the company’s customer service has to be looked into prior to choosing them.
Most funeral insurance plans require premiums to be paid until the time of our passing arrives, hence consider the premium amount and add them up for ten or twenty years, they might add up to much more than the $10,000 or $20,000 your funeral would cost. Take into account that funeral costs will not be the same in ten years compared to now, and also take into account that some policies have premiums that are floated which increase as you age.
Funeral insurance plans from different providers come in different configurations and therefore shopping around diligently could make a huge difference towards what you ultimately leave behind for those you care about most.
