There are many different types of policies
They include home and auto to health coverage. All of them are designed to help you prepare for expensive situations. It could be car accidents, freak storms, or unexpected illness. They are like family trusts and other forms of asset protection. Thus, these policies are designed to help you plan for the future.
You should also know that there are a variety of life insurance policies for your consideration. Most people know about the two main types of life insurance. These policies are called term and universal/whole life coverage. They are both intended to pay out to loved ones in the event of your passing. There are other options, though, such as funeral insurance. How is this type of policy different from life insurance? Here are a few things you should know.
What is Funeral Cover?
Funeral insurance is also referred to as burial insurance. It’s designed to cover end-of-life expenses exclusively. These are often associated with burial or cremation, just for example. This type of insurance is very specific. That’s because the money goes directly toward paying for the costs of your funeral. It can’t be applied to anything else.
How is it different from Life Insurance?
There is one way in which funeral insurance and life insurance are the same. Both pay out at the time of your death. Aside from that, the two forms of insurance are different in almost every way.
For example, life insurance pays out a cash value to your named beneficiary. It can then be used any way the beneficiary sees fit. The funeral insurance benefit is also specific. It covers costs associated with the policyholder's funeral or burial or other specified end-of-life expenses.
In addition, funeral insurance does not expire, like term life insurance, for example. It cannot be used to accumulate cash value. This is unlike an index universal life policy. That policy has a retirement savings element.
Do you need both?
You probably already have family trusts in place. Therefore, you might want to set up a family home trust specifically for your house. Why? That because it is simpler. It’s also less expensive than placing your home in with, say, income-earning assets. That’s due to the fact that they require a lot of financial maintenance.
Do you need both a funeral policy and a life insurance policy? It's not a bad idea. Your regular insurance policy could be used for your funeral costs. However, it may not pay out as quickly as funeral insurance. This leaves loved ones to foot the bill up-front. Plus, they must also recoup costs later.
So why not learn more and register with TrustUs today.
After all, it's in your hands.