Funeral Advantage Insurance – Funeral Insurance Policy

Funeral advantage insurance, also known as final expense insurance is a policy that covers the cost of a person’s funeral. This type of policy will enable loved ones of the deceased to not have the added worry of paying for the funeral and burial of the deceased. This type of insurance policy is completely different from life insurance policies. Many times these policies are paid directly to the funeral home for services rendered.

Funeral Insurance Policy - Provides Security

The Federal Trade Commission or the FTC enforces a law called the Funeral Rule which was passed in 1984. Under this law, funeral directors are not allowed to take advantage of a grieving family.  The family has certain funeral rights that funeral advantage insurance helps to protect. Funeral homes are required to supply a price list of all services offered. The family has the option of purchasing a coffin elsewhere and bringing it into the funeral home. It is the responsibility of the funeral home to disclose all legal requirements pertaining to the funeral and they are not allowed to misrepresent the legal requirements or add to them. In doing so, they could be investigated and prosecuted by the FTC.

For many, funeral advantage insurance is an excellent benefit to have. It allows for the insured to plan their funeral to their specifications and determine the cost of the funeral. Once they know what the cost will be of their funeral or memorial service, they can then purchase a final expense policy that will cover that cost. Typically, funerals will range in price from $8,000 to $11,000; this does not include the cemetery plot where the deceased will be buried or the headstone to be placed at the grave. Memorial services will generally range in price from $4,000 to $8,000; again, this does not include the cemetery plot or the grave marker.

People from infancy to about age 85 qualify for final expense insurance and the worth of the policy can range from $3,000 to $35,000. Policy owners can put a child rider on the policy; this means that if a child of the insured dies, they too are covered under the policy. These types of policies will build cash value similar to whole life insurance.  There are no physical examinations required to obtain final expense insurance. The insured can add an accidental death benefit rider onto the policy if desired. Most policies are set and the premium prices will not increase or the amount of the policy will not decrease as the insured ages.

While life insurance policies are used to cover the funeral expenses, in reality, life insurance policies are there to help the deceased family survive without them. It is meant to be a supplement for the lost income or support that the deceased provided to the family. Funeral advantage insurance is used strictly for the cost of the funeral or memorial service along with the final disposition of the deceased’s body or remains. Many people will carry both life insurance and funeral advantage insurance to ensure that their loved ones are taken care of financially when they are no longer living.

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Comments (2)

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  1. Maria Lopez says:

    Thank you for your time and review this information.

  2. Ken says:

    You hit the nail right on the head my friend. I tell people all the time…”you need something!” Many people fail to realize the difference between the two. Life insurance is to sustain the living where the Funeral Advantage Plan is for the deceased. Keep up the good work!!! God bless.

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