Burial Insurance vs Life Insurance | Final Funeral Insurance

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    Burial Insurance vs Life Insurance: Definition, Types, Examples

    Inputlearn.com -- On this occasion, I will discuss Burial Insurance vs Life Insurance. Check out the explanation below.

    #Burial Insurance

    Why Is Funeral Insurance Important?

    Many unexpected events always overshadow our lives, such as illness, accidents, and even death. These risks often occur without our knowledge, so we are prepared or not ready to face them.

    When the disaster comes suddenly, of course, we will be bothered with the costs that sometimes burden us, because of the high cost of the services we use. Not a few of the people have to resell assets or other valuable property to get more money to make up for the shortfall. Some have to be willing to borrow from other people or other creditor services so that they can immediately get money to pay for unpaid expenses.

    So are funerals. The community is also often confused by the high price of burial land, which from year to year has been increasing in value. When compared to previous years, the value of land for graves was not as expensive as it is now and many people could find it easily.

    Because too many people are already burdened with the cost of buying a cemetery, many community service companies provide funeral insurance which in recent years has started to work. Its existence has proven to be successful with the enthusiasm of the community who as time goes by more and more people are using it.

    Burial Insurance vs Life Insurance

    The existence of this community service certainly reduces the burden of increasingly expensive funeral costs. Just try to take into account all the needs for the funeral, from the price of the grave land to the transportation rental. Even if you just imagine it, it certainly looks very expensive, right?

    The high cost of just burying the bodies of course can make the family frantically look for sources of funds. Although they can get funds from donors, not all the costs are covered, right?

    For example, you are in a big city, like Toronto. If you compare prices at each location, you will have prices that are not much different. What distinguishes it may be the group of graves which are generally divided into 5, namely the AAI block which costs hundreds of thousands. Then there are AAII, AI, and AII blocks where the rent is in the tens of thousands. As for the lower class or the less fortunate, they can use the AIII block group which is free of charge.

    Of course, it will be very difficult for them, especially under economic conditions that are not supportive. With the existence of grave insurance, which is now widely interested in it, the poor can also be helped with the costs they have to spend. Not to mention that if they wanted the bodies to be moved to their hometowns, they would need millions of dollars just to move them.

    For example, the use of planes to transport the bodies. The local company said that if the family used a plane to deliver the bodies, it had to cost a lot of money just for one trip. Why is it so expensive?

    Because the airline has taken care of all the things needed to move the body to the destination grave, starting from the ambulance, room for the family waiting for departure, to taking care of all kinds of documents needed by the airline.

    Then, what is the actual cost of transporting the corpse to get to the destination grave? The costs incurred to use the plane or just an ambulance, the value is not much different and is still in the range of millions. What's more damning might be in the coffin.

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    Most people who often take care of graves must know that coffins are more expensive than other Canada funeral arrangements. Just imagine, just for a coffin, some cost tens of millions. Although there are still cheaper ones, $5000 or $100.000 won't be enough to buy them.

    Due to the high cost of funerals, funeral protection services are very important. If you already have death insurance, it is better to add a funeral service.

    If you think that death insurance can cover the cost of land, coffins, and other necessities for funerals, you are wrong. The guarantee only compensates in the form of a sum of money if the owner dies. This service is perfect if you are a breadwinner. When he died, the family left behind would get some to help him financially.

    If you add a funeral guarantee, the family will be helped because there are not many expenses for the cost of burying the body. So, it's a good idea to use both insurances for better financial planning in the future.

    From the explanation above, surely you already know the high cost of funeral arrangements. You can't cover it yourself, especially if your financial condition doesn't help. So, it's a good idea to invest some of your savings to buy insurance so that in the future it doesn't burden you later.


    #Life Insurance

    Life insurance is a contract agreement between the policyholder (the insured) and the insurance company (the insurer) in which the insurance company promises to provide payments based on the death of the insured or payments based on the life of the insured with benefits whose amount has been determined and/or based on the results. fund management. This insurance will protect the insured from the impact of unexpected financial lossescaused by someone if they experience sudden death, total permanent disability, or unproductive conditions (too old or too long to live) resulting in loss of income sources.

    Burial Insurance vs Life Insurance

    Life insurance has different benefits. Therefore, there are several types of life insurance that you need to know about. Let's look at the following types of life insurance:


    1. Term Life Insurance

    All term life insurance products provide coverage for a certain period called the term. The benefits of this insurance policy can be paid only if:

    (1) the Insured dies within a predetermined period, and

    (2) the policy is still valid (in force) when the Insured dies.

    If the Insured is still alive until the expiration of the specified period, the policy will give the policyholder the right to continue life insurance coverage. If the policyholder does not continue the coverage, the policy will terminate and the insurance company is not obligated to provide further coverage.

    The types of term life insurance coverage are:

    • With Fixed Sum Insured (Level Term Life Insurance) which provides death benefits in the same amount during the term of the policy.
    • Decreasing Term Life Insurance, which provides a death benefit whose value decreases during the coverage period. The benefits of this policy start with a predetermined sum insured and then decrease throughout coverage according to the method described in the policy.
    • Increasing Term Life Insurance, namely provides a death benefit that starts at a certain value and increases with a certain value or percentage at predetermined intervals during the policy term.

    2. Whole Life Insurance

    Insurance has 2 (two) characteristics, namely:

    • Provides lifelong coverage to the Insured as long as the policy is still valid (in force); and
    • Provide insurance coverage and contain elements of savings.

    The types of whole life insurance coverage are:

    a. Traditional Whole Life Insurance

    This type of insurance provides lifelong coverage at a fixed premium rate (premium rate) which does not increase with the age of the Insured.

    b. Last-Survivor Life Insurance

    This type of insurance is also known as second-to-die life insurance, which is a type of combined lifetime life insurance where the policy benefits are only paid after the death of the two insured persons. This life insurance premium is only paid until the first Insured dies or the premium can be paid until the second Insured dies. This insurance is specially designed to provide coverage to married couples who want to have the funds to pay estate taxes that are imposed after their death.

    c. Joint Whole Life Insurance

    This type of insurance has the same features and benefits as whole life insurance for individuals except that this insurance covers two lives in the same policy, often called first-to-die life insurance because after the death of one of the Insured, the death benefit in the policy will be paid to the surviving Insured and the policy coverage ends.

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    3. Endowment Insurance

    This type of insurance provides a certain amount of benefit whether the Insured lives until the end of the coverage period or dies during the coverage period. Every life insurance policy has a maturity date, which is the date on which the sum assured is paid by the insurance company to the policyholder if the Insured is still alive. The maturity date will be reached at the end of a predetermined period, or when the Insured reaches a predetermined age.

     

    4. Insurance Unit Link

    Insurance Unit linked is insurance that combines insurance benefits with investment. The premium paid will be allocated into two separate management mechanisms, namely the management of the basic premium for protection purposes and the management of investment premiums. Investment premiums are managed by the Investment Manager or the company's investment experts. By purchasing a unit-linked, an insured can benefit from insurance protection as well as a return on investment. Unit-linked in Canada are generally provided by life insurance companies.

     Well, that was a brief explanation of Burial Insurance vs Life Insurance: Definition, Types, Examples. Hope it is useful.

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