Unlike most other insurance, funeral insurance (sometimes called 'burial insurance' or a 'funeral plan') covers an event that will definitely take place. Whereas other insurance protects the policyholder and pays compensation in case something happens, Funeral insurances provide for the funeral expenses that will have to be paid when we die. By taking out funeral insurance in the form of a financial package or a funeral plan, it's possible to think ahead and enable important benefits for you and your next of kin:
When you take out funeral insurance, you are buying a financial product and paying in advance for your chosen package of funeral arrangements. With funeral costs rising (typically faster than inflation since the 1980s), the financial organisation will invest your advance payments to ensure that the future cost of your funeral can be met. And of course, in return for having the use of your money, the insurer guarantees to provide the funeral that you have specified.
Whatever your funeral wishes, it's essential to research potential funeral insurance providers carefully and make sure your chosen company can provide everything that you want.