Taking out a funeral policy for a parent
by
MoneyShop
Funeral Plans, Insurance
Losing a loved one is a devastating time in any family and one that should not signal you having to worry about funeral expenses. For this reason, taking care of funeral plans in advance, when you are thinking more rationally can spare you the run around.
Typically, thinking of the death of a loved one is not a heart-warming thought and one that most of us avoids. But it is inevitable. Taking out a funeral plan for them, however, can ensure a dignified send off and put you at financial ease too.
Here are a few tips to ensure you make the best decision for you and your loved one:
- Don’t get caught in waiting periods
Especially when taking out a funeral policy for an elderly parent, it is always advised to take note of the potential waiting period. This means that you will have to wait out an amount of time before being able to claim. Waiting periods typically outline a period before you can claim for pre-existing conditions or death as a result of suicide, for example. - What can you afford
Funeral policy offerings differ from provider to provider, and depending on the plan you select you may be saddled playing more than you bargained for. It is vital when taking on an added expense that you look at your current expenses and whether you can afford another. The reality is that emergency expenses will arise, and you do not want to be caught short when they do. - Do not wait for retirement
“Waiting for your parents to near their retirement is one of the most common mistakes people make when taking out funeral insurance. People delay taking up funeral cover for their parents, hoping to only start the process when the parents approach retirement age,” states Lee Bromfield, CEO of FNB Life.
Bromfield further adds that this is risky and usually costs more money as your parents’ risks have increased (age and health). If you can afford the premium, it is highly recommended you start sooner rather than later. - Be clear on your plan
Knowing what it is you are paying for is vital as it will avoid any confusion when the time comes.
In addition, “Funeral cover has evolved over the years, focusing more on providing a cash pay-out, instead of supplying a casket, and other related items. By selecting a pay-out, the family is allowed more flexibility on what they would like to do for the funeral service. The funeral pay-out, if spent wisely, could even cover the expenses after the funeral,” Bromfield explains.
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