If you yourself are a senior citizen or if you have elderly parents or grandparents who are of retirement age, you may be worried about the expenses involved in a decent funeral. There are varying rates of funeral services and even a moderate funeral costs around 7,500 dollars and it is no laughing matter. It so happens that people do not always have that amount of cash lying around. You might want to start thinking about applying for final expense insurance to pay for all the expenditures of your loved one’s funeral. Sometimes, an elderly person may leave some substantial bills.
It seems funerals cost quite a lot of money. This is why getting an insurance policy sounds like a great idea. Funeral insurance policies are known to be a very affordable kind of insurance policy for senior citizens with chronic health conditions. There are two basic types of final expenses:
1) Standard Funeral Insurance: This kind of insurance is offered by insurance companies as a whole life policy. The left-over money is paid out to the beneficiaries on the event of the death of a loved one to pay for the final arrangements which include:
- Funeral home services
- Opening and closing of the grave
- Transportation Facilities
- Headstone, flowers and obituary notices
The family member of the deceased can apply for some or all expenses or debts to be paid for by the insurance company which include:
- Legal services
- Credit card debts
- Medical bills
- Mortgage or other loans
2) Pre-need Funeral Insurance
This particular kind of insurance policy is provided by life insurance companies and even some funeral homes. In this case, the funds are transferred directly to the chosen funeral home you have decided to rely on instead of a designated beneficiary. The money is paid out immediately after the passing of a loved one.
Pre-need insurance comes in handy when the family members want to save money by allowing them to pay for services with much cheaper rates. However, if you have to pay more than your due, your family members will not be able to receive the difference. For example, if you have taken out 10,000 dollars in spite of the final arrangements which are valued at only 9000 dollars, the funeral home will not provide the family members with leftover 1000 dollars.