Does Life Insurance Cover Funeral Expenses?
Life insurance is a must today primarily due to the hectic lifestyle that many people live, which leads to countless health problems. In the event of the main earning family member passing away, the surviving members, young and old have to cope with a difficult situation.
Importance Of Having Life Insurance Today
If there is no life insurance in place they have to take up the money saved behind in the bank, after showing necessary documents which state their legal eligibility to use the funds of the deceased.
In case a property has to be sold to meet debts, managing such a task take a week, two weeks, a month or two or even six months. What can they do to meet immediate and urgent finances? It is in such situations that final expense life insurance policy proves to be a vital assistance.
When the main earning family member has left behind a life insurance policy, survivors can use money from it to pay off for various debts, rent, school fees and other immediate as well as big financial expenses such as mortgage dues, credit card EMI’s, loans for funeral expenses and small financial loans.
How long does it take for life insurance to pay funeral home?
What they gain from the policy after claims is a lump sum which can be a very huge amount. The time taken for the amount to get realized can be at most one to three months of time.
Once the money is gained, it is like having a regular monthly income, but in a different way.
Furthermore, it is best for the huge amount gained from the life insurance policy to be properly reinvested so that it pays out over a long period of time, giving necessary financial security in an otherwise very difficult situation for loved ones like a dependents like wife, small child, and elderly family members.
Hence, general final expense life insurance takes care of the long term consequences of an earning family member’s passing away.
What About Immediate Final Expenses?
However, what is to be noted is that general life insurance does not cover funeral expenses, which need to be paid right away after the policy holder’s passing away. It is in this context that a funeral or final expenses policy is needed.
Here the payout happen literally in 48 hours after making claims and the money provided is just enough tot take care of final expenses of the loved one who has passed away.
Some of the many things for which the money can be used to pay for is burial, cremation, casket, flower arrangements, attendees catering etc. Hence, what funeral expenses insurance companies does is that it provides immediate relief for final expenses to loved one and prevents them from taking a loan to meet the same.
Final Expense Insurance Policies
Getting a funeral insurance cover is easy as usually no medical examination is required. Not only can the amount be used to meet immediate funeral expenses but also other financial dues that simply cannot be put off for even a couple of days or a week.