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.

What Is An Insurance Premium?

If you have availed of insurance in the past, then you are probably aware of what an insurance premium is. For those who are still wondering what it is, let us provide you with the definition. Simply to put, an insurance premium is the amount that you have to pay the insurance company in order to make sure that you are still covered by insurance. Consider this as your basics when it comes to insurance and the financial obligations involved in getting one.

As mentioned above, it is the amount that you have to pay your insurance company. Again, the cost is not the same for all people. It depends greatly on several factors. Firstly is the amount of coverage that you desire, secondly is your health and thirdly is your age. Let us discuss these one by one. Insurance companies offer many packages for their clients. Along with the different packages comes with different rates. The more comprehensive the package, the higher the rate will be. The simpler and more basic the package, the less expensive the premium will be. Now what does our health have to do with it? A healthy person tends to get lower insurance rates for the simple reason that they are considered to be low risk by the insurance company. Let’s say if you are getting a health insurance. A sick person is bound to get higher rates because there is also a higher chance for that person to end up in a hospital. The last factor is age. Age and health are greatly intertwined. An older person is more likely to be sickly than one who is young and in his or her prime.

The insurance premium amount should be clearly stated in the insurance policy where the client and the insurance company signed. That means that the insurance policy holder agrees to the policy and is thus liable to pay for the premium regularly. It is important to note that one must not miss out on paying for it. You might have paid for your premiums for years now but if you miss one deadline (including the grace period), that could mean that you will lose your insurance forever and the money that you have paid for in the past goes down the drain. In short, failing to pay for your insurance period will cost you a lot of money.

If you are talking to an insurance agent and you are worried because you think that the premium is too high, do not fret. You can always negotiate with the price. This could mean that some benefits will be removed from the package but at the end of the day, the important thing is that you have the policy that fits your lifestyle, your needs and the budget that you have.

Who Is An Insurance Policy Holder?

Are you planning ahead of time and thinking of your future now? That is a very smart move that more and more people are starting to take. After all, times are hard and no one knows what the future holds. It is always best to face it prepared than to be caught without any preparation at all when the time comes. That is why a lot of people are now aiming to be an insurance policy holder. That way, they can sleep better at night and rest assured that they have planned for their future in advance.

However, before one can even think of getting an insurance policy, it is an absolute must for him or her to fully understand the terminologies and what it takes to get one. After all, it is a big responsibility once the policy has been signed. It means an additional financial commitment on top of your monthly bills. Hence, it is wise for a person considering insurance to have a good and comprehensive understanding of it. That way, he knows what he is getting himself into.

Perhaps the most basic thing that a person should understand when getting insurance is the terminology. One of the most basic terminologies that a person must know is “insurance policy holder”. Simply put, it is the person who opts to get insurance for him or herself. He is the person who is paying for the monthly premium regularly and he is also the one who benefits from the policy that he chose to get. Hence, the insurance policy holder is the one insured.

What does an insurance policy holder need to know? To begin with, he needs to fully understand the coverage of the policy. In fact, this is something that he or she should know thoroughly even before the contract is signed. That way, he knows what he is entitled to, should he have the need for it.

Second, he should be faithful in paying for the monthly premium of the insurance policy. As I mentioned earlier, getting one is a big financial obligation. Hence, you must set aside a certain amount of your hard earned money in order to pay for it. Failure to do so could mean cancellation of the policy which would be such a waste especially if you already paid for it in the past. Hence, it is a must for the policy holder to be responsible in paying for the monthly premium.

Perhaps the very reason that an insurance policy holder chose to get one is the fact that he or she knows that the future is bleak and so they choose to plan for it. That way, they are able to weather any storm no matter how big it is.