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What happens if I die and don't have funeral insurance?

What happens if I die and don’t have funeral insurance?

Article by George Pettit

Death is inevitable and something that more and more people are planning for with funeral insurance. What if you are one of those who didn’t plan ahead? What happens if you die and don’t have funeral insurance? Depending upon your circumstances there are number of ways things can turn out.

Best case scenario, you or a family member are wealthy and don’t have to worry about the high costs associated with a funeral and all the financial details it includes. It would have been a good investment to purchase a funeral policy in the long run, if you had done a little research, but still you haven’t hurt anyone, so it turned out fine.

A bit farther away from the best case scenario, you and your family have a little money put back that you were saving for a rainy day, but it is just enough to cover the funeral costs. After paying for the funeral, your spouse and family are left with no savings whatsoever. They’re not facing severe financial dramas, but they don’t have a safety net should something else unforeseen happen.

Best worst case scenario, your family can pull the funds for your funeral together by getting a loan and maxing out their credit cards, but they are put in a financial bind and great debt which will fill their lives with stress. Their finances just can’t support such a load. If you had just gotten that policy when you looked into it, instead of deciding to wait until a later date, then your family wouldn’t be in this dire situation.

A bit more towards worst case scenario, your family can’t afford your funeral and have no means to borrow the money so they have to work hard by getting a second job or putting together a fundraiser on your behalf. They are embarrassed to ask for help, but are able to pull off a simple funeral.

Worst case scenario, your family is not in any way able to help with your funeral, so they advise the coroner’s office to conduct a destitute burial in a pauper’s grave. This means there will be no service and no funeral; it is the government’s policy that you will be buried along with five other strangers whose families had no means with which to give them a proper funeral and burial.

These last scenarios paint a very harsh and sad picture of what it might be like if you die without funeral insurance, but each one is a reality for many families every day. Funeral insurance is not required and is optional in Australia, so if you haven’t purchased it, you haven’t broken any laws. However, a funeral insurance premium is but a very small price to pay so that your family doesn’t have to struggle financially, bear the burden of your funeral costs, or worse yet–leave you to be buried by strangers.

About the Author

George Pettit is a journalist and financial specialist from Australia. He writes for several magazines about topics such as real estate, investments, funeral insurance, currency trading and much other which attract attention of many readers.