Is a funeral plan the same as life insurance?

Life insurance pays out on the event of your death if this happens while the policy is in force. A funeral plan helps you to put money aside to pay for your funeral costs. Life insurance will not pay out if the policy has ended, whereas the funeral plan is designed to pay out when you die.

Can you use life insurance to pay for funeral expenses?

Many life insurance policies will pay a lump sum when you die to a beneficiary of your choice. It will pay for your funeral or any other general financial needs of your survivors. The payment is made soon after you die and doesn’t have to go through probate.

Why do I need a funeral plan?

Having a funeral plan in place is important to cushion yourself financially during a tough time. Making financial plans to be able to afford your own funeral, or that of your loved ones, is crucial to ease financial stress during a difficult time of grief.

What is a funeral insurance plan?

Burial insurance is a type of funeral expense life insurance policy designed to cover the cost of your funeral or cremation expenses when you die. After you die, burial life insurance pays the death benefit of your policy directly to your beneficiary who can use the money in any manner.

What does a funeral plan include?

With a standard funeral plan, you pay for your funeral in advance, at today’s prices. While other plans might be more basic and just cover the cost of your burial or cremation. As well as the main costs of the funeral director and coffin, funeral plans might also include – or make a provision for – third-party costs.

Can you pay monthly for a funeral plan?

All funeral plan providers offer pay monthly funeral plan options, usually ranging from 1 to 20 years. Some companies even offer direct debit payments up to 25 years, but this depends on age as usually payments must be complete by the time you are 80.