Funeral Insurance ? Avoid These Four Common Mistakes
The first mistake to avoid in purchasing funeral insurance is not getting enough coverage. A much talked about statistic from the funeral industry today is that the average cost of a funeral in the US is around ,000. But, that may not be the case in some areas of the country. The costs can rise sharply in some locations. You may find that ,000 does not cover everything you think it might. If you do not have a burial plot, the cost of that can run quite high in some urban areas. Make sure you have enough coverage when you purchase a burial policy.
The second mistake to avoid when obtaining funeral insurance is getting too much coverage. And this is very possible. Again, many people see the figure of ,000 and think it is accurate. However, there are many ways that it can be too much. Cremation costs much less than burial. Choosing a simpler casket can keep costs way down. If you are paying too much on premiums because you have too much coverage, you will be paying too much. Save the money and leave your loved ones a legacy that should not go to the hands of the insurance companies as premiums.
A third mistake you need to avoid when buying funeral insurance is naming the wrong beneficiary. Naming a beneficiary can be tricky. Many choose a family member as a beneficiary for their insurance. If that person is trustworthy, that is a great option. But, if that person decides to use the money for other things, there is no reason they cannot. Some choose to name a funeral director as the beneficiary in exchange for a preplanned funeral. That would work if you were close to the end of life and knew what was going to happen in the near future. But, illness can bring relocations. And a preplanned funeral may end up being in the wrong location when the time comes.
The final mistake to avoid in getting funeral insurance is obtaining it from the wrong company. Companies come and go in the insurance business. It is important to get a policy from a solid company with a good reputation. You want an insurance company with a good rating. You should check with various sources to make sure the company has a good reputation. When you avoid these mistakes, you are going to find yourself with a solid policy which will go exactly where you want it.