Without a doubt, losing a family member is very difficult. However, things will even be more challenging when those left behind. They might be forced to deal with the financial responsibilities involved with the death of a family member. If you do not want your family members to suffer more when you are gone, the best solution is to get final expense insurance.
To understand how this insurance can help your family if the inevitable happens, continue reading below for more valuable information.
Understanding Final Expense Insurance
A final expense insurance will protect those who you will leave behind against financial burdens such as funeral costs and existing taxes, debts, and mortgages. It can also be designed to cover other costs, such as legal fees.
The most common expense during the death of a loved one are the following:
1. Cremation Expense
Direct cremation in Canada can cost around $600, but it gets more expensive if you factor in other costs such as viewing, obituary notice, service, flowers, etc.
2. Burial Expense
The average cost of a traditional burial in Canada can be between $5,000 to $15,000. This includes a modest casket, cemetery plot, grave marker, etc. The cost can even be more expensive in some cases, depending on the service duration and other additional costs.
The expenses mentioned above can be covered by final expense insurance from your provider of choice. On top of that, the government will be providing a lump sum of up to $2,500 for these expenses if you qualify under the Canada Pension Plan.
The Benefits of Funeral Insurance
Aside from protecting your loved ones against financial burden, here are the other benefits of funeral insurance:
You Can Plan Your Burial/Cremation
The nice thing about having funeral insurance is that you can plan the details of your cremation or burial. This will also allow those that are left behind to know your final wishes.
Immediate Pay Out
Most insurance providers immediately release the benefit after 24 hours of the claim. This will allow the family to make the necessary preparation for the burial or cremation of their dead loved ones.
Can Anyone Get Funeral Insurance?
Anyone can avail of funeral insurance for an accredited insurance provider.
However, for the Canadian government funeral expense benefit, they are eligible if they made contributions to the Canadian Pension plan. The contribution must be at least ⅓ of the calendar years of the CPP contributory period. Or, the deceased has made a contribution worth 10 years.
Getting a final expense insurance will help you feel at peace, knowing that you are not leaving behind any financial problems. Some of you may think that this is unnecessary insurance. But remember that you never know what will happen, so it is best to prepare for the worst-case scenario.
Are you interested in getting final expense insurance any time soon? Speak to one of our advisors or sign up below to get a quick quote.