The average cost of a funeral in Canada ranges between $8,000 and $10,000. However, the total cost can be double that, depending on a number of factors.
Your loved ones will be facing enough at the end of your life, so why leave them strapped with thousands of dollars of funeral costs as well?
By signing up for a funeral insurance policy now, you can save yourself and your family money. You'll pay for the funeral years in advance so that when your time comes, your family can focus on mourning your loss rather than coming up with cash for your funeral.
Keep reading to find out more about how having burial insurance can help save you money.
What Does Burial Expense Insurance Cover?
Before we jump into the ways having funeral insurance can save you money, let's take a look at exactly what it covers. Knowing what it covers will help you plan for the future and be prepared to help your family avoid surprise expenses.
Keep in mind that all insurance companies will have their own coverage options, so not all of these are necessarily covered by every company and policy. Be sure to ask about your options to make sure the policy you're getting is what you want.
Here are a few things that most funeral insurance policies will cover:
Funeral or Memorial Service
This is the service held by your loved ones to honor your life. You will likely need to pay to rent a location and for a minister to perform the service. Other expenses surrounding the service include flowers, decorations, and memorial cards.
Burial or Cremation
Deciding how you want your body handled after your death can help you save money. Whether you want a traditional burial, cremation, or another option, this cost will be factored into your insurance policy.
Burials are more expensive than many other options because you also have to buy the plot of land in which you're to be buried. This is another cost that will be covered by insurance.
Other End-of-Life Expenses
There are a number of expenses that can pop up unexpectedly at the end of your life. This includes paying off debts or other assets, medical bills, and more.
For the family members that you're leaving behind, this can be a huge financial burden. That's why most funeral insurance policy includes extra money for these unexpected expenses.
Now, let's go through some of the ways burial insurance can save you and your family money.
1. Lock in Current Prices
The most significant way you can save money by having funeral insurance is by locking in current prices for everything from the casket to the burial lot. When you buy now, you save money on inflation.
The younger you are, the more money you'll save by buying now. When you consider how expensive funerals are now, imagine how much they'll be 50 or more years from now!
2. Make an Unemotional Decision
Grieving family members tend to make poor decisions. They want their lost loved one to be honored, and don't consider the price tag on anything while planning the funeral. This can end up costing hundreds or thousands of dollars more.
When you plan your own funeral far in advance, you're not going to make any rash decisions based on how upset you are in the moment. Instead, you'll be able to carefully weigh out what's going to be the most cost-effective option for you.
This also gives you time to look into all of your options for funeral locations, burial options, and so on. You're not leaving your family to quickly go with the closest funeral home to them that only offers expensive packages.
3. Pay Over Time
Rather than having to pay one large lump sum, having burial insurance allows you to pay an affordable monthly rate. How much you pay depends on several factors:
- Your age
- Funeral options
- Insurance company
However, you may find yourself paying as little as $10 per month for funeral insurance. By paying into the policy every month, it will ensure that there's money there for your funeral.
Even if you have fewer years to pay into your policy, you'll still pay far less by paying every month instead of your family needing to pay everything all at once.
4. Lower Interest Rates
This is another area in which making a fast, emotional decision can be costly. If your family is faced with an overwhelming number of funeral expenses, they may need to take out a personal loan or use credit cards to cover the costs.
This results in high interest rates when paying back the debts. Your family may then be stuck spending an additional 20% above and beyond the initial cost of the funeral, and that's assuming they can pay it back fairly quickly.
Most insurance policies, on the other hand, will have significantly lower or no interest rates. This allows you to only pay for the funeral, and leave you with more money in your pocket to enjoy the time you have left with your family.
5. Compare Insurance Companies
When you have plenty of time, you can compare funeral insurance companies and the plans they have to offer. This allows you to pick a policy that's cheaper and will work with you so you can plan the funeral you want.
Often, life insurance companies work to provide funeral insurance as part of a package. This can help you save even more money by rolling your life insurance and funeral insurance into one policy.
Ready to Get Your Own Funeral Insurance Policy?
Now you know how having a funeral insurance policy can help you save money. By giving yourself more time to decide exactly how you want your funeral to go, you can then lock in current prices to save yourself or your family money.
If you're ready to purchase an insurance policy for yourself, get a free quote today. We'll give you a list of companies that provide funeral insurance so you can start shopping for a plan.