A Funeral Plan Financially Protects the Family
Article by Jeremy Smith
The average cost of a funeral in Australia is ,000 to ,000, and that average seems to be escalating every year. Planning a funeral is not on anyone’s priority list. Everybody wants to go heaven, but no wants to go today, sums up the general attitude about dying and funerals, so people tend to procrastinate when it comes to developing a funeral plan. However, there are ways to plan without commiserating over the details of the event.
No one wants to burden family members with the expense of organising a funeral, so there are options, and one is preplanning. Most life insurance companies offer a feature called end-of-life planning, which promotes a benefit that will pay for all of the expenses associated with dying and burial. In most cases, these companies will automatically accept anyone between the ages of 55 and 65, without a medical check-up. They offer coverage from ,000 to ,000 for a monthly premium, but most policies will payout a triple benefit if the death is accidental. A ,000 policy, for example, would payout ,000 when the death is accidental.
Premium amounts are usually set for life. There is no worry about them increasing as the insured ages, plus the total amount of premiums paid will never exceed the amount of the coverage. Death by any cause is covered after the first 2 years, and that includes existing medical conditions. In addition, claims are usually settled within 48 hours once documentation is received.
Some companies stop accepting premiums after the age of 60, and still keep the full coverage intact. The payout can be used to cover funeral costs and any other expenses and obligations. The beauty of this preplanning is rooted in financial stress-relief for the family, at a time when cash flow can be tight or not flowing at all.
Some Term Life Plans Accept a Lump Sum PaymentMost policies are set up on a monthly basis, but some insurance companies may accept a lump sum for a funeral plan. Those lump sum payments can be partial payments, which means other payments can be made at a later date without a penalty. The total amount of the policy is assured when the total premium is paid.
Once the payout is made, the beneficiaries have complete control in terms of where the money is spent and how. There are not pre-arranged funeral services or funeral homes, unless there is a clause in the policy that was initiated by the insured. Most Aussies believe preplanning is the only sane solution for a very touchy subject.
About the Author
Author writes about a variety of topics. If you would like to learn more about a Funeral plan, visit http://www.aussie.com.au/.