Funeral Insurance for Seniors: Important Information to Know

Posted on October 6, 2018

If you're hoping to be buried in Canada, the expense can cost up to $10,000. As we all know, the end of every life is inevitable and therefore, funeral costs are also an unavoidable part of life.

When planning for your own funeral, you need to think of the costs of everything from burial to transfer of remains and the service.

As we all age, it's important to think about how we'll fund such a funeral without leaving the financial burden to our loved ones who are left behind and grieving.

A funeral is a time where you're being remembered. So, it's important to put some money away to make sure this day is a good representation of your life.

Funeral insurance for seniors is a great option to ensure there is money available for this sad occasion without putting the strain on your relatives.

By purchasing insurance, it's possible to ensure arrangements are taken care of so that your family and friends can grieve without worrying about money.

Let's take a look at some important information you should know before investing in your own funeral insurance for seniors.

1. What Exactly is Funeral Insurance for Seniors?

Firstly, before we look at why it's worth spending money on insurance, it's worth learning exactly what funeral insurance is.

You may have heard of, or you may already actually have life insurance. Essentially, a funeral insurance is a version of this insurance which is more specific.

But, what exactly does funeral insurance cover? Of course, depending on the premium you purchase, this can change.

Funeral insurance can cover everything from:

  • Cremation of casket costs
  • Burial costs
  • Staffing fees for the formal ceremony
  • The hiring of cars and a hearse.
  • Transferral of body costs
  • Death certificate costs
  • Service requirements
  • Funeral reception food
  • And even travel for close relatives from out of town who attend.

Often, your relatives will be given a lump sum of money from the insurance company which will be specifically for covering the costs of the funeral.

2. Who Qualifies for Funeral Insurance?

In theory, absolutely anyone can qualify for funeral insurance. However, the title of such insurance is regularly known as an over 50s plan or product.

Don't be fooled, if you're unwell, you may not be able to qualify for life insurance. However, funeral insurance is very different from this and there are products which you can still qualify for. You may be facing a slightly higher premium, but this isn't necessarily always the case.

Of course, it's worth finding the best insurance company for you by asking how much money the lump sum is and by reading the small print. But, funeral insurance isn't off the table even if you're facing an illness.

In fact, purchasing such insurance can even make your last few months on Earth a little more comfortable as the worry of financial burdens on your family is taken away.

3. How Much will Funeral Insurance Cost Me?

As a retired senior, it's important to think about money and not waste cash on things which aren't required.

So, how much does funeral insurance cost? As with everything there are many variables which change the cost.

Factors which need to be taken into consideration include:

  • How old you are - if you're younger, it'll be thought that you have longer to pay and will have less of a monthly overhead.
  • Whether you're male or female - of course, on average, women live longer than men.
  • What you want to be covered at your funeral - for example, whether you want to be buried or cremated.
  • Any illnesses will also be taken into consideration in your application but shouldn't hinder you.

When you've worked out these answers, you could be facing a monthly price of anywhere between just $30 to $140. Paying an annual charge may be cheaper.

4. There's Always Lots of Small Print to Keep in Mind

This is potentially one of the most important pieces of information to pay attention to when you're considering buying funeral insurance. That is, the small print.

There are many different small print variables to pay attention to. These may include:

  • Restrictions on where you travel - many funeral insurance plans won't cover you if you died while visiting a country they've deemed "dangerous".
  • Check the length of your premium - many plans may end when you reach a certain age. For example, 101 years old. It's better safe than sorry with such an ongoing expense.
  • When you pay - is it cheaper for you to pay in a lump sum every few months or even annually compared to paying monthly? This could help you save a large amount of money.

If you're feeling uncertain about reading the small print alone, it is worth hiring a professional to speak to. By doing this, the one-off expense may not be cheap but it could save you a lot of money in the long-term.

5. Our Top Tip to Consider Before You Buy Funeral Insurance

Of course, our journies through life are all different and, therefore, so are our funerals. But, before you even start spending any money on insurance, you should definitely work out exactly what you want to happen at your funeral.

Plan everything precisely. You may even consider getting quotes in advance from the place where you'd like your service to be held. Ideally, you'll choose a funeral insurance which is able to cover everything you want to happen down to the last cent.

Although it may feel unnecessary or distressing to discuss funerals with loved ones, it's an important topic to bring up.

If you can't bring yourself to speak about your funeral with your family, then leave instructions either with a lawyer or with someone else that you trust and can talk to.

This way, when you eventually die, your loved ones will know exactly what you want from a funeral when the time comes. They will also find that you have funeral insurance to cover your wishes.

Bear in mind that you can't pay for an expensive monthly or annual overhead, cremations are a lot cheaper than burials.

6. Plan Your Funeral in Advance - How Much Will it Cost?

Of course, in order to plan your funeral, you need to know roughly how much everything costs.

Let's have a look at a quick rundown of funeral averages to help you get an idea for how much you need to save.

  • Cremation in Canada costs around $600
  • Burials can cost anywhere between $5,000 and $10,000
  • Service costs vary depending on the region of the country that you're living in. But, expect to pay up to $4,000 or even as little as $1,000
  • Death certificates cost around $22 (again, this depends on where you live and the hospital)
  • Body preparation can cost up to $600
  • From these figures, it's clear to see why the average cost of a funeral is around the $7,000 mark. Amazingly, only 10% of Canadians are prepared to pay for such costs and are leaving this huge financial burden up to their families.

7. How Should I Start Paying for Funeral Insurance for Seniors - Brokers or Captive Agents?

So, you've decided that funeral insurance is for you? Well, now you may be wondering how you go about procuring or paying for funeral insurance.

There are two main options for you. But, the most popular option is to choose a broker to do the work. This professional will explore insurance products which suit your needs.

They will help you go through the small print and find the right funeral insurance for you.

However, it's important to find a broker who is competent and has been recommended. If you find the right person, they can provide you with a great rate which is affordable and specific.

The second most popular option for those who don't want to pay a broker is to do the work yourself and go through a captive agent.

A captive agent works within an insurance company. Therefore, they will only be able to tell you about the prices and products which are available within this one specific company.

You should do your research to find an insurance company which offers you everything you need and read the small print before arriving or speaking to a captive agent.

But, once you've done all of this, the agent will be able to very quickly set you up with a plan.

Funeral Insurance is a Great Idea for Everyone - Especially Seniors

As we've seen, funerals can cost a lot of money. If your family is facing a burden of $10,000 and then finds out that you have funeral insurance, they'll be greatly relieved.

But, make sure to let them know that you have money available for this occasion before you die. Funerals are an extremely emotional time and any way to remove some of the pressure from the day is always desirable.

It's extremely important to work out whether funeral insurance is right for you. Make this decision as impartially as possible.

You can begin by searching for the lowest insurance rates in Canada on our website by getting a quote for funeral insurance for seniors today.

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