Funeral cover is an insurance policy which usually pays out a relatively
small amount for a funeral upon the policy holder’s death. The policy usually has
a low face value and usually only begins to pay out 6 to 12 months after the policy
is taken out.
Some funeral cover policies are based on average expenses of funerals while others,
especially those sold by funeral homes, will list items and services associated
with the funeral to give a more accurate face value.
An important thing to look out for is whether the policy’s value increases over
time. Some do not meaning that they do not keep up with inflation and the rising
costs of a funeral. Before purchasing funeral cover, compare the cost and benefits
of the plan and if you are unclear on details ask for advice.
Some of the items used in a funeral that can be pre-purchased. These include:
- The casket or urn
- Cremation services
- Embalming if a public viewing is required
- Headstone, mausoleum or burial vault
- Hearse
- Flowers and decorations
- The burial plot
Some traditional funerals involve large receptions before or after the funeral.
If this type of service is required, check that the funeral plan covers this.