Funeral insurance, also called burial insurance, is a small life insurance policy that covers funeral costs and other final expenses. By planning ahead, you spare your loved ones a financial burden at an already difficult time. Instead of worrying about bills, your family can focus on saying goodbye.
You choose a coverage amount, usually enough to pay for a funeral, burial or cremation, and related costs. Then you pay a fixed premium. When you pass away, the insurer pays your beneficiary a tax-free lump sum. In addition, your beneficiary can use any money left over for other final expenses, such as outstanding bills.
Many plans ask only a few health questions, and some ask none at all. However, plans with no health questions usually limit the payout during the first two years. We’ll explain these terms clearly, so there are no surprises. For more on how life policies work, see the Financial Consumer Agency of Canada’s consumer guide.
A pre-paid plan with a funeral home locks in specific services with that provider. By contrast, funeral insurance pays cash to your beneficiary, who can use it with any provider. As a result, your family keeps full control over the arrangements. Some people also combine the two approaches.
Funeral insurance suits people who want to cover final costs without a large policy. For example, it’s popular with seniors, people who can’t qualify for larger coverage, and anyone who doesn’t want their family to dip into savings.
Our experienced consultants can help you with every step:
Don’t leave your family with unexpected funeral costs. Contact Nova Star Insurance Consultants today to discuss your funeral insurance needs. The conversation is free, with no obligation.
Send us a message! We’d love to hear from you.
