Death is an important and inevitable part of our lives. The idea of arranging a funeral for our loved ones might fill us with sorrow. However, with the increasing expenses of funerals and commercialization of funeral homes in Sydney, having the policy to cover one’s funeral expenses and thereby providing some financial support to your loved ones isn’t a bad idea.
Researches show that there is a growing awareness among the people of Sydney where more and more people are opting to buy a life insurance scheme these days, which is rightly started to be counted as one of the basic necessities of life because it prepares the family for the unpredictable future by standing as a firm pillar of financial support at the time of adversities. Funeral Insurance is yet another type of insurance becoming popular in Sydney, which is used to cover funeral expenses.
However, choosing which insurance scheme is best for you can be a troublesome task. To make this process a bit easier for you, the following are some differences between the two most common insurances taken up by people of Sydney these days.
Life Insurance or funeral insurance or both of them?
There are various similarities between Life and funeral insurance. They are similar in many ways, like regular payment of premium and disposal of a particular sum of money at the time of the applicant’s death thereby easing the financial burden on the family. However, there are some key differences as well.
Difference in Eligibility
Many factors come into the picture when one applies for a Life insurance scheme, like medical history, age, medical condition, etc. However, on the other hand, anyone can apply for funeral insurance irrespective of their health condition. Generally, one Funeral insurance covers the applicant, his partner, and the adult members of the family like the applicant’s parents.
The difference in Cover limit
Funeral Insurance is meant to cover the expenses incurred at the time of the applicant’s death only.
Though it covers a few other things like debts or making payments at the time of death, still the covering amount remains much lesser than the Life insurance’s cover.
Difference in criteria
Funeral Insurance is generally chosen by the people who don’t have any dependents because then there is no need for any earning amount to be replaced for the surviving dependant. However, Life insurance becomes important for people who have someone who would need financial support after their demise, like children, spouse, etc. It is also beneficial if you have some lifetime commitment that needs regular disposal of money to pay off.
Is buying both of them a good idea?
Most of the time, Life insurance comes with the feature of covering funeral expenses as well. Thus, it saves one from the tedious task of buying another insurance. However, if you are not eligible for life insurance or do not require subsidiary benefits that come along with it, you may choose Funeral insurance only. Thus, the decision to buy insurance ultimately depends upon your requirements.