life insurance vs funeral insurance

Which One You Should Opt For Life Insurance Or Funeral Insurance?

What is funeral insurance?

life insurance vs funeral insurance

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Funeral insurance is a kind of insurance in which the person pays all the expenses of his funeral to the insurance company in advance and this funeral company will pay the charges of the funeral expenses when they are to be actually made. This insurance company will do the funeral activity with the help of some trust or organizations. This amount of money paid by the person in advance can be given in both the ways either on the basis of monthly installments or all at the same time.

Also Read : A Detailed Overview On Term Insurance Before Starting The Financial Plan

What is life insurance?

life insurance vs funeral insurance

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The life insurance is kind of the insurance which is the contract between an insurer and the company in which the insurer is insured in case of the death. If the death of the person occurs then the insurance company will indemnify the person’s family. The insurer need to pay the money in the installments in the life time and it is to be repaid at the event of death. Many a times in some policy the money is paid even in the terminal illness or critical illness. Sometimes the policy amount is also paid in the lump sum amount in place of the installments.

Though both the type of the insurance provides the same kind of the benefits that is to provide the amount in lump sum to the family of the diseased, there are some difference in both the kind of the life insurance policy.

  • Coverage of insurance policy:

life insurance vs funeral insurance

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The core difference between the insurance is that the funeral insurance provides the expenses of the funeral only which can be said as the limited coverage compared to the life insurance which covers the debts, funeral expenses as well as the day to day expenses.

Additional covers such as covers for accidents, injuries, etc. can be also included in the life insurance which is not available in the funeral insurance.

  • Criteria to obtain insurance:

life insurance vs funeral insurance

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There are some criteria to be satisfied by the person to obtain the life insurance as it is the insurance for a big amount and on the other side the funeral insurance does not specify any criteria to be satisfy as it is for small amount. So if the life insurance criteria are not satisfied then you can go for the funeral insurance.

  • Medical requirements:

life insurance vs funeral insurance

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The medical check-ups are necessary before the life insurance is taken by the person; these check-ups are to be conducted by the insurance companies as they are insuring the person and will be assured of that the person is not ill in manner. On the other hand there are no check-ups needed in the case of the funeral insurance, so t I easy to take the funeral insurance.

Also the medical check-up is done at the time of death of the policy holder in the life insurance and there will not be any of this in funeral insurance.

  • Different premium payment options:

life insurance vs funeral insurance

Source : ivari.ca

The life insurance provides different options to the insurer to pay the premium in his life time where such different options are not given in the payment of premium for funeral expenses.