people sitting on the bench

 Funeral ceremonies form an integral part of our culture. The costs of funeral right can be a serious burden to low and medium income families in the society. This is the type of insurance policy that offers protection to the members of the family by providing whole life insurance cover for members of the family for the costs of funeral right following the death of any member of the family. It is equally funeral insurance or burial insurance or final expenses insurance.

In most cases, the minimum age for the buying of this policy by the principal policyholder is at minimum of 18 years and the maximum is 60. Furthermore, the minimum buying age for parents is 33 and maximum is 60. And while that of the children is minimum of 15 years and maximum of 25 years.


When death occurs, the benefits are payable to either the beneficiaries or to the legal representatives. In the event the principal policyholder dies first, the death benefits are payable to a specified beneficiary. Also the spouse of the principal policyholder equally reserve the discretion continue with the payment of the premiums on the policy within six(6) months from the date of the principal policyholder’s demise.

It is equally worthy of note that with a single premium, both the principal policyholder and his /her beneficiaries enjoy coverage.

Note also that this type of policy do not pay benefits until after a waiting period of about first two or three years in the life of the policy. This is to forestall a situation where everyone would want to wait until they were on their death bed, pay premiums for one month, and have their beneficiaries receive benefits. However, if the policyholder dies during the waiting period, the policy’s beneficiaries will get back the premiums in respect of the policy. 

The points to note here is the following

  1. Funeral insurance also refers to as burial insurance, final expenses insurance, senior life insurance or burial insurance
  2. It consists of various plans by people who want to make sure they provide finance for their dependents before departing this life.
  3. Burial insurance is a form of whole life insurance.
  4. It is often marketed to seniors as something crucial that they should buy to protect their loved ones from big expenses after they’re gone.
  5. Burial insurance is easy to get and does not ordinarily require a medical exam.
  6. The more affordable policies with better death benefits require that you complete a medical questionnaire stating not be terminally ill.
  7. Keeping a savings account for the purpose of funeral or burial costs presents an alternative for people who are older or ailing and want to help their family with final expenses.

Advantages of funeral insurance

  1. Some funeral insurance policies do not require medical examinations or  medical questions.
  2. There is guarantee of acceptance. This is why it is sometimes called guaranteed acceptance or guaranteed issue life insurance.
  3. It is an insurance policy for people who are so sick that they cannot qualify for any other type of life insurance.
  4. The policy is clearly not expensive when compared to universal or term life insurance policies.
  5. It represents a show of love. Burial insurance is one of the most important things you can do to show love for your family so they don’t have to struggle to pay for your funeral and settle your bills.
  6. A funeral insurance policy gives your family a lump sum payment to pay for funeral expenses when you die.

Disadvantages of funeral insurance

  1. The premiums payable on funeral insurance policy can increase a lot over time. For example, there can be big increases after you turn 50 and the rates may become unaffordable.
  1. In the event you cancel your policy or can’t afford the premiums, you’ll probably lose the premiums.
  2. If you live another five to 10 years after buying your policy, you may end up paying more in premiums than the cost of the funeral.
  3. If you die from a terminal illness in the first few years, you may not enjoy coverage
  4. The procedural bottlenecks may not make payment of benefits to your beneficiaries immediate. It can take a while for your family to receive the insurance payout to cover your funeral expenses.

Keeping Savings Account as An Alternative To Funeral Insurance

Since your concern for buying funeral insurance is to ensure that there will be funds for your burial expenses. There is need for you to consider maintaining a savings account and naming the person who would have paid your burial expenses as the beneficiary of the account. This money can be withdrawn immediately if you passes on by your survivors. Unlike funeral insurance benefits that they will have to follow certain procedures to make claims which may not be timely enough thereby defeating the purpose of the policy.

Similarly, you can also consider prepaying funeral expenses at the funeral home. However, this involves investing money in a business that may or may not be viable or well run by the time your family actually needs to arrange your funeral.  Therefore a savings account as said earlier provides the most flexibility alternative.

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