We know this isn't the most cheery subject, but it's important to figure out how you'll cover the expenses associated with leaving this world.
As its name implies, funeral insurance is designed to help pay for a person's final expenses. There is zero requirement for a medical exam during the insurance buying process. There were roughly 440,000 separate funeral insurance policies in force in 2014, with an average face value of $8,859. Although it seems like it would be a simple matter to avoid paying more in premiums than the actual value of the funeral cover, we found that this is not always the case.
- When you get older, your rates may skyrocket, making it difficult to pay for the coverage you need, especially if you are on a defined salary. This is especially true if you have a predetermined amount of retirement savings.
If you stop paying your premium, your insurance policy will terminate, and you will virtually never be eligible for a return of any kind. In 2014, 16.5% of policies were cancelled, with the insurer being liable for the cancellation of one out of every three of these policies due to non-payment of premiums. In total, 16.5 % of policies were cancelled.
- The best solutions are often funerals that have already been pre-paid, funeral bonds, life insurance, or even simply a simple savings account.
- Funerals can be expensive. Peter Tziotzis Orthodox Funeral Directors are here to assist in making the process of arranging a funeral as easy and uncomplicated as possible for you and the people who are important to you.
Therefore, what are all of the available choices?
The advantage of this method is that the weight of the casket is distributed on the shoulders of the pallbearers, and the casket can be lowered immediately to the grave, as the pallbearers will simply walk lengthwise on each side of the grave.
Once a Medical Certificate of Cause of Death has been issued, a body can be buried. There are three choices of burial site: a public cemetery, a private cemetery, or private land. To bury a body on private land, the land must be greater than five hectares in area and the approval of the Local Council must be obtained.
If someone dies without enough money to pay for a funeral and no one to take responsibility for it, the local authority must bury or cremate them. It's called a 'public health funeral' and includes a coffin and a funeral director to transport them to the crematorium or cemetery.
Nobody owns a body – there is no property in a dead body. The person entitled to possession of the body is the person who is under a duty to dispose of the body. A crematorium authority must hand over the ashes to the person who delivered the body for cremation.
The curtains at the crematorium are symbolic and signify the point at which the coffin is committed to be cremated – The 'Committal' Earth to Earth, Ashes to Ashes, Dust to Dust. They signify the finality of the departure of the deceased. Different crematoria will use different methods to provide this symbolic gesture.
If you go this route, you'll have to keep making payments until you're 90 years old, but after that, your insurance will be given at no extra cost. Only during the first few years of the policy are you likely to be covered in the event of an accidental death, and the benefit amount is either fixed at the outset or increases with time. To qualify for health insurance, one typically needs to be between the ages of 18 and 79; the older one is, the higher their premium would be.
The Dangers Of Purchasing Funeral Insurance
- Your premiums may stay the same or go higher from one year to the next; they may also vary by gender and smoking status.
- The amount your premiums will increase by the subsequent years is unknown until you lock them in.
- Insurance premiums might often exceed four times the cost of a burial.
A Rallying Cry For Changes To Be Made To Funeral Insurance
The Consumer Action Law Centre (CALC) and CHOICE were among eleven other consumer and pensioner advocacy organisations who petitioned for changes to Australia's funeral insurance system in 2013. One of the organisations on the call was CHOICE.
In light of this need, Hollard Insurance has created a new policy named "Guaranteed Funeral Insurance," which offers the following assurances:
- Insurance rates are set in stone and will never go up.
- If you keep your policy for a full five years without cancelling it, your rates will go down by 5%.
- If the total premiums paid since the product was purchased are greater than the benefit amount, the latter will be paid. Because of this, the cost of insurance premiums will never exceed the value of the coverage provided.
The director of marketing and communications at CHOICE thinks it's positive that a product is available with better terms for funeral insurance. But we still tell them to shop around for alternatives that might be cheaper or offer more bang for their buck. Preplanning one's funeral expenses, investing in life insurance, or even just setting aside money in a savings account are all viable alternatives.
For this reason, preneed funeral plans are highly recommended because they cover all or a portion of the costs associated with your burial at today's pricing. If you prepay for funeral and burial expenses, your loved ones won't have to worry about them after you're gone. Yet they can be inflexible, so if you move to be closer to relatives in another state, you may want to see if you can transfer your subscription to another service. Peter Tziotzis Orthodox Funerals is ready to help you create a fitting and meaningful memorial for your loved one through funeral and cremation services.
Prearranged funerals can be paid for in a number of ways.
- Individuals can set up a "contribution fund" with a funeral home of their choice to pay for all or a portion of a funeral through regular, small payments. Every single fund has its own set of requirements.
- A cemetery plot, wall niche, or space in a memorial garden are all products that can only be purchased in advance. You can get these things in a cemetery or crematorium.
- Affordable final expense planning: You pay for your own funeral in full from the outset, and you get to choose how it will go. A down payment and subsequent payments over a set period of time are also viable options. Before committing, it's a good idea to find out if you can get a refund if you decide to cancel your plan.
Prepaid funerals may be required to be registered in your jurisdiction; to find out if this is the case, contact the Fair Trading agency in your state.
What Exactly Is Covered By A Funeral Policy?
You want your funeral to be a fitting farewell to your life, loved ones, and friends, but you also don't want your loved ones to have to go into debt to pay for it.
It is a sad reality that many people do not have access to such large sums of cash to cover such final costs. Burial and cremation insurance become relevant in this context.
Funeral insurance requires recurring premium payments during the policy's duration. If you pass away, your loved ones will get a lump sum payment usually within 24 hours of submitting a full claim.
This money can be used to pay for the funeral director's services.
- The casket or sarcophagus
- Funeral home fees, if any, and wake site costs.
- Inhumation with an urn or burial with a headstone
- Catering the wake with food and drinks
What Is The Procedure For Our Funeral Insurance?
Simply put, it's not rocket science to figure out:
The cost of your burial should be calculated. Get a rough idea of how much the funeral will cost, and then start making calls.
So that your loved ones can prepare for your funeral costs in advance, we will make the payout process as simple and expedient as possible.
- Numerous families count on life insurance payouts to cover final expenses. The majority of people who buy life insurance do so in order to cover "final expenses," as defined by a survey conducted by LIMRA and Life Happens and supported by the insurance industry. In fact, this is cited by 84% of policyholders as a primary reason for purchasing insurance.
- Burial insurance is a specific type of life insurance designed to pay for funeral and burial costs. Final expenditure insurance, sometimes known as funeral insurance, is one of several names for this type of policy.
Burial insurance is a type of whole life insurance, however the face amounts are usually rather low, between $5,000 and $25,000. No one with a young family who needs life insurance to pay off a mortgage, fund their children's further education, or replace lost income during their prime working years should consider purchasing one of these plans.
For many people over 60, buying life insurance is all about covering final expenses. The people who marketers of burial insurance for seniors typically aim for are those who are low-income, in bad health, and do not have any other life insurance policies that may be utilised to cover funeral expenses. Peter Tziotzis Orthodox Funerals is a Melbourne-based funeral service provider. Death of a loved one is a trying moment, and you can rely on our staff to be there for you every step of the way.
Burial insurance is not cheap, and you may find better value in other policies.
How Does The Process Of Buying Burial Insurance Work?
Burial and funeral insurance policies typically do not require a pre-existing condition clause or medical test, and the application for coverage may contain simply a few generic health questions, if any at all. Prices are based primarily on age and gender. Burial insurance policies often contain the following types of entire life insurance:
- An easier way to apply for life insurance: There will be no physical examination required, but if you answer "yes" to any of the health questions on the application, you will be automatically rejected. If you are applying for a policy with a simplified issue, you may be asked specific questions about your health or living situation, such as whether or not you have HIV or are a nursing care resident.
- Guaranteed issue life insurance policies do not need applicants to answer health-related questions or take a medical test. The odds of rejection are astronomically high against you.
However, "graded death benefits" are a common policy feature that can be a drawback for such straightforward requests. (For example:) If you pass away within the first two or three years of buying the policy, your beneficiaries will only receive a refund of the premiums you paid, plus some interest, or a tiny percentage of the policy's coverage amount. This holds true despite the fact that premiums have been paid in full throughout the policy's duration. However, deaths that occur as a result of an accident, such as in an aircraft crash, are normally covered in full from the start of the policy.
How Much Does It Typically Cost To Hold A Funeral?
The National Funeral Directors Association estimates that the national median cost of a funeral, including a viewing and burial, will be $7,640 in 2019. The cost of a vault, which is typically required for burial at a cemetery, is in addition to the amount listed above. When a safe deposit box (vault) is included, the average price is around $9,135.
Costs for a cremation without a casket and urn averaged $5,150 across the country. In the United States, the price of a cremation was that much. The average cost of a cremation, including the urn, is $6,645, with the majority of that going towards the purchase of a casket made for the process.
Remember that the estimates do not cover the costs of a monument or memorial, obituary, or flowers.