Caring For Your Family Even After Death

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Protecting your family from financial damage after you are gone is still your duty. The only way to make sure that this happens is by getting some funeral insurance. With almost every type of insurance, you talk of probability. However, with this particular one, you talk of what happens next after death occurs, since it is certain that it will occur.

There are various categories in this type of insurance. Listed below are three of those categories.

1. Whole life insurance

This category is sub-divided into two parts - the insurance part and the investments part. Therefore, anytime you make payments every month, a certain amount will go to the insurance part to keep it active and the other amount goes to the investments. Upon your death, the invested money and benefit from the death insurance goes to the beneficiaries. The beneficiary to cover funeral expenses and other expenses as well can use this money in any way they find fit. However, this type of insurance does not demand that the beneficiary uses the money specifically for funeral expenses.

2. Term life insurance

This type of insurance does not deal with investments. It just deals with insurance on either monthly, quarter a year, half a year or yearly basis. In the case that you die before the time allocated, then the benefits go to the beneficiaries. However, in case the death occurs after the term indicated then nothing goes to the beneficiaries and the benefits go to the drains. This point makes this type of insurance a big disadvantage. What makes this insurance better than whole life is the fact that the premiums in this case are lower.

3. Pre-need insurance

Pre-need insurance is not anything like term life or whole life insurance. It is it structured in a way that it is covers specifically the funeral expenses. Whole life and term life opt that you name a family member as your beneficiary. Pre-need insurance opt that you name your funeral director instead as your beneficiary. The family member could spend the benefits in a way they wish. A funeral director signs a contract that sees to it that everything is done as planned before the death. The major disadvantage in this type of insurance is that it does not cover anything else apart from funeral expenses. In case you left behind mortgage, then it is upon your family to deal with it.

Ensure an agent does not lie to you that these are the only existing types of funeral cost insurance. Getting quotes from different companies about these types of insurance will ensure that you do not go wrong.

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