What Is A Preneed Or Funeral Insurance?

Death is a topic that people often try to avoid. After all, it is not exactly the most pleasant conversation topic and everybody has this secret wish to dodge it even though death is a certainty that everyone would have to go through at one point or another. So instead of running away from the topic, don’t you think that it is best to prepare for it instead? After all, like they say, everything in life is only for now except for 3 things – bills, paying tax and death. The question is, how exactly do you prepare for death since you do not know exactly when it will happen? Well, you are not the first person to ask that question and that is why preneed insurance is now available for you.

What is a preneed insurance? It is sometimes called funeral insurance. You may wonder why in the world you would need to get one. The reason why people get it is not really for their own sake but for the sake of their family and loved ones. If you think that you are spending so much now while you are alive, then brace yourself because the truth is that even death can be very expensive. For people who do not want to burden their loved ones when they pass away, they pay for their own funeral cost while they are still alive. In this way, when the hour comes, their loved ones will be spared from all the stress and the financial obligations.

So what are inclusive in a preneed insurance? Well it all depends. Some of the funeral products that it usually covers are the cost of cremation, the casket or the urn (depending on your choice), flowers and even embalming. Should you opt to be buried, then the burial services can also be covered in the payment. That usually comes with the burial plot, the vault, the grave liner, funeral vehicles, grave markers and everything else that is used during the ordeal.

The next question that you would usually ask is, how much will it cost you? Again, just like any other insurance, the cost will vary depending on the kind of service that you go for. The more comprehensive your preneed insurance plan is, the higher it will cost you in your monthly premium. The simpler it is, the lower the cost. Again, this will all depend on your choice of policy and your budget for it.

Purchasing a preneed insurance is pretty simple. There are insurance companies that offer this kind of service as well as funeral homes. You simply have to visit their office or even just go online to do your research. At the end of the day, you know that you are doing your family a favor when you get this kind of insurance policy.

Who Is An Insurance Beneficiary?

Many people get insurance because they view it not as an expense but as an investment. As an expense, getting insurance could really cost you a lot. As an investment, however, you think that every penny that you are paying is very much worth it even it means extra financial responsibility on your part. So why do people get an insurance in the first place? Naturally it is not because they can afford to spend more on a monthly basis. The reason is that they are spending today for needs that may arise in the future. They invest on one because of its beneficiary.

The question now is what is an insurance beneficiary? As the word suggests, it is the person who benefits from the insurance. In certain insurance claims, the insurance policy holder himself or herself is the beneficiary. In others, it is a family member or a loved one. To make things clear, let me set an example. If you invested on a health insurance, that means that you are paying for it now while you are healthy and well because in the future, you might get sick and your income may not be so high anymore. As a beneficiary, when that day comes, you know that you need not bother your family or friends nor worry about where to get money for medication. Your insurance policy will take care of it.

As mentioned earlier though, there is another kind of insurance policy and that is one that involves your family. Let’s say that you decided to invest in a life insurance while you are still well, when you pass away in the future leaving your family behind, they benefit from the insurance that you invested in because they need not worry about the financial obligations. The insurance policy has that covered. In fact, the beneficiary that you stated in the document will even get money upon your death. That way, you can still take care of your family even when you are no longer around.

As a beneficiary, there are certain things that he or she should know. To begin with, he or she should know the benefits that he or she is entitled to. That is why if you are a policy holder, you have to make sure that you spend time with him or her so that they are aware of what you are securing for them.

Another thing that a beneficiary should be aware of is how to go about getting your benefits. What is the point of having benefits if you have no idea how to get hold of it? Again, he or she should be aware of the company’s policies and procedures so that they can avail of the benefits that are rightfully theirs.

Who Is An Insurer?

Are you planning for your future and wanting to make sure that you’ve got everything covered? Well, one of the best ways (or perhaps the only way) to do that is to get insurance. You may be on top of your game now but when the time comes that you need help, who will you turn to? Do you want to bother your friends and family members for your needs or would you rather prepare things way in advance while you are still capable of doing so? I opt for the second option and the same goes to a lot of people. Hence, it is time for you to start looking around in search for an insurer. That way, you can prepare for your future and rest assured that you will be alright.

However, before you set out and look for an insurance agent, you first have to know what an insurer is. Simply put, an insurer is the person whom you will talk to, if you want to plan for your future and get an insurance policy. They are the ones you open up to in order to discuss your needs, your budget and what your expectations are, for the insurance company to do for you. They are also the ones who can custom fit your insurance plan. After all, it is not exactly a “one size fits all” deal. They are the ones who will draft the contract until you sign it the moment that you are pleased with the offer.

Generally, an insurer can either work independently or work in an insurance company. Regardless, however, there are certain qualities that they should have. These qualities are not negotiable because your insurer must be someone whom you can trust. Otherwise, it is best to just forget about the whole idea of getting insurance.

First, an insurer has to be trustworthy. Again, you have to make sure that they are legitimate. Believe me; it has happened in the past wherein clients were fooled to make their payment for the insurance only to discover that it is a scam and a fly by night insurer. You definitely do not want that to happen to you. After all, we are talking about your hard earned money. So before entrusting your cash to that person or even before you sign the contract, check first if the insurer is a legitimate one. You can do this by asking to talk to his or her past clients.

Second, an insurer should be willing and able to customize your insurance policy according to your needs. They should not force you to pay more than what you can afford and neither should they shortchange you in terms of services. That is why it is best to deal with several insurers at one point and then decide from there which one you shall go with. Remember, you and your insurer must be on the same page.