When a loved one dies, you are already dealing with a lot of emotions. Then, you have to add on those things that you need to do next, such as planning their funeral. Funerals are very expensive, which is why there is a need for life insurance and pre-need service. But what’s the difference between these two options? Which one is best for you? This will help you navigate these things so that you can make an informed decision on which is the best solution to reduce the financial hardship on those left behind.
Life insurance is actually a very broad term that can cover quite a few different types of policies, such as burial insurance. If you have burial insurance, this will cover any funeral or cremation costs that you may be facing. This can be a relief to you since funeral costs can cost you at least a few thousand dollars. In order to prevent this stress on your family, doing your research to find the right life insurance policy for your needs. In a lot of cases, you can get a life insurance policy that includes a death benefit that can payout up to $20,0000. After you die, this money gets paid out to the beneficiaries of your policy to pay for any medical bills, funeral expenses, or anything else that needs to be paid when you die.
Pre-need insurance is very similar to life insurance, in the fact that you are setting aside money for your funeral expenses. This will help reduce the financial hardship on your family after your death. It also has term life policies or permanent policies like life insurance policies. The biggest difference between life insurance and pre-need service is that the money from a pre-need insurance policy gets paid out to the funeral service provider of your choosing immediate, rather than to your beneficiary. This is a predetermined amount that the funeral companies are paid based on the funeral costs at the time of purchase. Should inflation increase the prices, your prices are locked into this lower amount. Another difference and major benefit of pre-need insurance are that once you have paid off the total cost of this plan, you keep it for life.
These are both options that you can purchase while you are alive to make sure that you reduce the financial hardship of your loved ones after they die. They are already mourning the loss, they don’t need to worry about how they are going to pay to honor the person that they love. There are benefits to each of these options, but you need to take a close look at what your individual needs are to see which of these options is the best choice for you. It can be a good idea to talk to a knowledgeable professional to make sure that you get something that will best benefit your loved ones. You should always be prepared for when the time comes and having the right insurance policy in place is the best thing that you can do.