What it means to have funeral insurance

Funeral insurance is a policy that can help you and your loved ones prepare for funeral expenses. A lump sum will be paid out to the beneficiaries to help them take care of funeral expenses that may arise. The benefit of having such a policy is that it is paid out immediately once you have notified the insurer. You get to choose how you would like to pay your premiums and the amount in which you wish to be covered for either fortnightly or monthly.

The Pros

Comparing your options is always a good way to see if the policy will be suitable for you. It can also let you see if you will be able to afford the premiums over the life of the policy. Some of the benefits that come with having funeral insurance are:

The cons

Not all funeral insurance policies are created the same. Therefore, it is vital to compare your options to find one that is suitable for your circumstances. Some of the pitfalls that come with having such a policy are:

The take home is to compare your various policies by reading the product disclosure statement to see if it will be suitable for your circumstances. This will also show you what is included and excluded within the policy so that there are no surprises when it is time to place a claim.

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