Is Funeral Insurance A Good Investment Option?
Funeral insurance is a great way to ensure that your expenses are covered for when you pass on and you don’t want to have your loved ones be burdened by making arrangements and paying hefty funeral costs. This includes everything from medical bills, burial expenses, and any other small service that went into the whole process, including paying for the casket. Here is why it makes for a very good investment option.
Permanent Life Insurance
This is one type of life insurance that does not expire but is more expensive with every unit of coverage. The life insurance policy is for a speck of time period after which it becomes inactive. On the other hand, permanent life insurance stays active for as long you keep paying the premium amount.
Assignment of the Insurance
The proceeds to your installments towards the insurance policy go directly to the funeral place where the funeral’s cost is covered. The best thing about the procedure is that the money which is left out goes to the benefactor. Before you sign the papers, make sure that you have taken this into consideration and have talked to the representative of the service to confirm that they offer this.
You Can Go for the Plan that Fits Your Budget
The thing with funeral insurance is that there is no standard rate; you can choose the budget for which you would like to be covered for. You can decide the figure by looking at many factors in your current life situation. For example, if you go for a permanent policy, it might not be the best idea for you as that means your family will be able to spend less money every month, defeating the purpose of doing the whole thing for their convenience.
In the same way, you can’t go for an insurance plan that you find is too much for you to manage. You spend more on expensive policies which may not benefit your family at all. The flexibility to fit it in your budget is one of the great benefits offered by funeral insurance plans.
Tax Benefits on Each Plan
When you purchase permanent life insurance, some of your premium amount goes into a cash value account. This amount can grow based on your policy dividends, earnings and interest. Every policy is different, which is why it is important for you to make sure that you know the particulars before you sign on. The major advantage here is that you get to borrow from the cash value that is built by your insurance policy for education, buying a house, or spending it on retirement as that is where tax will be exempted.
There is No Time Limit to it
Unlike many other investment options, with a funeral insurance policy you are meant to be covered till the end no matter whether you signed up for the policy when you were in your 20’s or right before you retired.
Sources:
https://www.policygenius.com/blog/is-final-expense-insurance-worth-it/