There are several types of insurance that help families plan in advance to cover the costs related to the death of a loved one. It is important to understand the difference between the various types of funeral plans, so we’ve outlined a few of the most important differences here. If you have any additional questions, please don’t hesitate to call one of our professional insurance agents. Midgard Life Insurance Services is the authority on final expense insurance coverage. Don’t settle for anything less than you and your family deserve.

First Things First

One very important thing to remember, regardless of how you are planning ahead for your funeral, is to make sure your family knows what those plans are. Many times families won’t discover that there is a final expense insurance policy or prepaid funeral plan until after it is too late. In the case of an insurance policy, expenses can still be recovered. But if a plan has been prepaid for with a funeral home, your loved ones may not be able to recover those funds. So, don’t just tuck your plan away in a file drawer somewhere. Send copies to the people who need to know about it, and make sure they know who to call when the time comes.

What You Need to Know about Funeral Plans

There is a difference between prepaid funeral plans and insurance policies that cover final expenses. Make sure you know which you are purchasing.

Prepaid Funerals

Most funeral homes offer prepaid plans that may sound the same as an insurance policy, but they are not.

  • They let you pay in advance for the expenses related to your funeral.
  • Because you are paying a set fee in advance, what you’ve paid may not fully cover expenses and someone will have to pay the difference.
  • Some plans only pay for funeral home services and may not include expensive things, like caskets or burial services.
  • Payments go directly to the funeral home, not to your loved ones. So your loved ones have no choice but to work with the funeral home if they want to benefit from the previous payments.
  • If you change your mind, you may not be able to make changes to your prepaid plan or to cancel it.
  • If the funeral home goes out of business or changes hands you’ll need to make sure that your plan is still enforceable.
  • If you move, you may not be able to transfer your plan to a different funeral home.
  • If all of the money in your plan isn’t spent, what’s left may not go directly to your heirs.

Final Expense Insurance

Final expense insurance policies, like the ones offered by Midgard Life Insurance Services are very different than plans available through funeral homes. The biggest difference is that they are insurance policies, and are regulated and managed as such. Other benefits include:

  • Payments are made within 24 hours of claim approval, so funds are available when needed.
  • You choose your beneficiary and funds are paid directly to them, not to a funeral home.
  • Your family chooses how to use the funds. If your funeral expenses are covered, remaining funds can be used to pay outstanding debt, legal fees or medical bills.
  • Cash benefit plans are available up to $35,000.
  • Policies are easy to qualify for and require no medical exams or complicated application forms.

Other Benefits

While insurance policies to cover final expenses help your family financially when the time comes, there are other important considerations that may mean more to you than possibly saving some money by purchasing insurance.

  • Your loved ones won’t have to suffer undue stress because financial worries can be set aside for the time being.
  • Any family drama that could end up damaging sibling relationships can be avoided when people don’t have to worry about who has to pay for what.
  • Your family will be able to focus on what is most important, celebrating your life and being there to support each other.

If you are considering final expense insurance or prepaid funeral plans, please give us a call. Our experienced, caring insurance agents are here to answer your questions. It doesn’t have to be expensive or difficult to protect your family and make sure that when the time comes, they don’t have to worry about money. Let us help.