30 April 2021,

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Surveys show that many Canadians don’t have enough funds available to pay for a funeral which can easily cost from $10,000 to $20,000.

In Hamilton, seniors can take advantage of funeral insurance to set aside funds for funeral and burial expenses.

We know this doesn’t sound exciting or fun but we can’t avoid it. Sooner or later, the time to say goodbye will come around. You don’t want to leave your loved ones with a large bill to pay.

Funeral insurance is a smart way of saving money for final expenses. With this thoughtful gesture, family members can mourn without worrying about paying a hefty sum for a funeral.

Funeral insurance can be used by your beneficiary to pay for:

Funeral expenses
Burial expenses
Medical bills
Credit card bills
Taxes
and other final expenses

The insurance proceeds are paid in cash to your designated beneficiary and is not tied to any funeral home or package. Hence, it is very flexible and can be used to carry out your final wishes.

You will be surprised at how easy it is to apply for coverage with premiums that are easy on the budget.

Find the best funeral insurance coverage using our short online form today! It will only take you 2 minutes or less.

How does funeral insurance work?

With age comes acceptance that life is not forever. When we enter our so-called “twilight years”, we reflect on the legacy we want to leave behind and how to wrap up our affairs when the time comes.

And as we plan our retirement years comes the realization that certain large expenses will need to be faced including medical bills and burial expenses. If not properly planned, these expenses can certainly become a burden to your spouse or children.

Even the most modest funeral can cost thousands of dollars. With funeral insurance, your beneficiary will receive money to pay for final bills incurred due to your demise. This final gift can help avoid putting financial stress on your family.

Funeral insurance as part of life insurance

Many people wonder why funeral insurance is needed if you have life insurance. The fact is that funeral insurance is a part of life insurance but the difference lies in their purpose.

Life insurance is generally designed to replace your income in case of death so that your family will have financial security. Thus, the insured amount of a life insurance policy will take into account your family’s lifestyle, your liabilities, and your financial goals. A life insurance policy offers insurance benefits from $50,000 to $5 Million.

In contrast, a funeral insurance policy is very limited in terms of the insurance amount and what it can pay for. As the name implies, it is usually meant to pay for funeral expenses and other end-of-life expenses. Thus, the insured amount is lower, ranging from $5,000 to $25,000. And because most people who buy it are seniors, the lower insurance amount keeps the premiums reasonable.

The insured amount from a funeral insurance policy is paid tax-free to a designated beneficiary after the death of the insured.

Benefits of a funeral insurance policy

With funerals in Hamilton costing thousands of dollars, it is inevitable that your family will face a financial burden when you pass.

Funeral insurance will give you peace of mind because you are assured your family will not have to worry about money while they are in mourning.

A funeral insurance policy can give the following benefits:

Easy application process
Level premiums
Lifetime coverage
No medical exam or short health questionnaire only

Choose the insurance company carefully. While some companies can process claims for weeks, some insurers can release death benefits within 24 hours of a claim.

Funeral insurance will allow you and your beneficiary will know exactly how your final expenses can be settled so that your affairs will be in order.

How much do you need for funeral insurance?

You will need to consider a few factors to determine how much funeral insurance you need.

It is important to think of what type of funeral you desire:

Casket or urn
Burial or cremation
Flowers, music, food
Viewing
Ceremony

Of course, there are certain fees charged by a funeral home such as:

Professional fees
Body preparation
Body transfer
Death certificate

In Ontario, the average cost of a funeral can be as little as $2,000 to $20,000. Personal preferences will have a big impact on the cost.

To get a better idea of how much you will need, you should find out what you want. Once you have your preferred end-of-life arrangements, you will know how much insurance you need.

Which is better: funeral insurance or funeral plan?

While you are researching your options for planning a funeral, you will also come across funeral plans.

Funeral plans are pre-paid plans being sold by funeral homes. They are specific arrangements for a funeral which one can pay for in advance. When the time comes, the surviving family members can use the paid plan for the funeral. If it is completely paid up, the family won’t have to pay more money.

With a funeral plan, the plan holder can choose everything he wants for his end-of-life arrangements- casket, plot, marker, ceremony, viewing, flowers, etc. Now that there is a pandemic, a zoom broadcast can even be arranged.

One advantage is that with a funeral plan, you will know exactly how much you will spend for a funeral and you can pay for than in installments over a fixed period.

Know, however, that you can’t change funeral homes. There may also be certain financial risks because a funeral home can go out of business.

The money paid to a funeral home is protected under the Prepaid Funeral Services Compensation Fund managed by the Bereavement Authority of Ontario (BAO).

Funeral insurance pays for funeral expenses and more

If you are not so keen on personally planning a funeral in advance, the other alternative is funeral insurance.

Similar to life insurance, the benefits are paid out in cash and can be used by a beneficiary in any way he deems fit. Hence, it is important that you designate a beneficiary you trust to execute your final wishes.

It works like permanent insurance in the sense that it does not expire. Thus, the benefits are paid as long as the policy is paid and death occurs after the waiting period.

Types of funeral insurance to consider

The most common question that seniors ask when considering funeral insurance is, “Do I qualify for funeral insurance?”

It is most understandable because seniors know that their advanced age and health conditions disqualify them from obtaining standard life insurance.

Funeral insurance, also known as final expense insurance or burial insurance, is easier to obtain than standard life insurance.

You may be surprised to learn that seniors, even those that have been previously denied coverage because of health reasons, can still qualify for funeral insurance.

There are two types of funeral insurance: simplified issue life insurance and guaranteed issue life insurance.

These two types of insurance vary in terms of maximum benefits, cost of premiums, eligibility requirements, and terms and conditions.

Simplified issue

Simplified issue funeral insurance is ideal for individuals who don’t qualify for standard life insurance due to moderate health risks.

A health questionnaire is required but you won’t need to undergo a medical exam. You would pay a higher premium compared to a standard policy for the same insured amount but you can get coverage for up to $50,000 (maximum insured amount varies from one insurer to another.)

Guaranteed issue life insurance

Many insurance providers offer almost 100% approval with guaranteed issue policies. Seniors can still quality for coverage regardless of health status because no medical questionnaire or medical exam is required.

Because the risk is higher for insurers, the insured amount is typically low, from $5,000 to $25,000 and the premiums are the most expensive in the market.

If you need some coverage for funeral or burial expenses and you can’t qualify for standard coverage, guaranteed issue policies are your best bet.

Would you like to know the premiums for a funeral insurance policy?

Find out by filling out the form on this page and receive competitive quotes, free of charge, from our reputable insurance partners.

Who needs funeral insurance?

Because funerals and burials come with a high price tag, funeral insurance is advisable for individuals who don’t have life insurance or need additional coverage for end-of-life expenses.

This type of insurance is also ideal for:

Individuals 50 years or older
Individuals with moderate to serious health conditions
Individuals who only require a small amount of coverage but can’t qualify for term life insurance

Individuals who live with cancer, Parkinson’s disease, HIV, or other serious illnesses can take advantage of funeral insurance to get coverage.

How much is funeral insurance?

Funeral insurance policies generally attract older or the not-so-healthy individuals. For this reason, the premiums for funeral insurance tend to be more expensive. In fact, you may end up paying the same premium for a term life insurance policy but the insured amount is much, much, less.

You can take a look at what premiums are like for term life, simplified issue, and guaranteed acceptance policies for a 60-year-old male individual.

Type of policy	Coverage	Monthly Premiums
Term life insurance (10 years)	$250,000	$78
Simplified issue (Lifetime)	$25,000	$82
Guaranteed issue (Lifetime)	$25,000	$177

** The actual prices vary depending on each customer’s personal circumstances. The above prices are average quotes for illustration only.

Where and how to get funeral insurance

Buying funeral insurance is quite easy and quick. You can immediately get coverage once you sign the contract for a guaranteed issue policy.

Depending on the type of policy, simplified issue or guaranteed acceptance, you only need to fill out a short health questionnaire of 5-8 questions and no medical examination will be required.

It is important, however, to shop around and get the best offers to compare before you buy your policy. Insurers offer different policies and prices with varying terms and conditions.

Pay attention to the waiting period as some insurers offer no waiting period while others require 2 years. If you should die within the waiting period, your beneficiary only receives the refund of premiums.

Our network consists of reputable and licensed insurance brokers that specialize in funeral insurance. Any one of them would be happy to shop for the best policy for you at the lowest possible price. Most importantly, you don’t have to pay for his services and you are sure to save on the cost of your premiums!

Because we want you to be safe and protected, our entire process is online. You don’t need to visit any office to apply for coverage!

Fill out the form today to get the best offers for funeral insurance, free and no obligation.

Frequently asked questions about Funeral Insurance

Buying insurance is not something to do lightly. It is important to understand your goal, the policy’s benefits and terms, and the price.

Below are some frequently asked questions about funeral insurance to guide you in making the best choices.

Is funeral insurance only for seniors?

If you are still eligible for standard life insurance, it is a better option because it has higher insured benefits and lower premiums. It can also pay for funeral and burial expenses. Funeral insurance is designed for seniors because their advanced age and health status make it difficult for them to buy standard life insurance. Thus, funeral insurance is their best option for paying for final expenses despite the lower coverage and higher premiums.

Is funeral insurance worth it?

Funeral insurance is a good way to set aside money for final expenses. With the cost of funerals increasing in Canada, it is best to plan how you want your final arrangements paid for and reduce the financial burden on your family. Take note, though, that funeral insurance is recommended only if you don’t have enough life insurance coverage or savings. If you no longer qualify for standard term life insurance, you can rely on funeral insurance to help you pay for final expenses.

What is a good age to buy funeral insurance?

Any life insurance policy is cheaper the younger and healthier you are. If you need coverage to pay for funeral expenses, it is best to buy it in your 50s or younger, if possible. However, seniors in their 60s or older can still buy funeral insurance but the premiums are higher.

Is funeral insurance only for final expenses?

Actually, funeral insurance will pay out cash benefits to your designated beneficiary. He will have the discretion to use it in any manner or purpose. For this reason, it is important to name a beneficiary you trust to carry out your final wishes.

How can I make sure that the funeral insurance benefits will be used to pay for my funeral?

You should name a beneficiary you trust to follow your final instructions. You beneficiary can also be a lawyer with whom you entrust your will or final arrangements.

Does a funeral insurance policy expire?

No, coverage from a funeral insurance policy does not expire as long as premiums are paid. Hence, it does not matter when death occurs as long as it is not within a waiting period.

Why do funeral insurance policies have a waiting period?

Most funeral insurance policies, particularly simplified and guaranteed issue policies carry a higher risk for insurers. They don’t do an extensive check of your health status. To offset this risk, insurers require a waiting period (usually 2 years). This means that if the insured individual should die within 2 years of the policy, only the premiums are refunded to the beneficiary.

What is the maximum insured amount available for a funeral insurance policy?

Most insurers offer up to $25,000 but there are a select few who offer up to $50,000. It all depends on the type of policy you choose.

Can I buy a funeral insurance policy for my parent?

Yes, you can buy a funeral insurance policy for a relative but it needs their consent.

Can I qualify for funeral insurance if I have a medical condition?

Yes, most seniors with medical conditions can still qualify for simplified issue policies. If you don’t qualify for this type of policy, your last option is guaranteed acceptance policies but they are more expensive. This type of coverage is almost 100% approved.

Where can I buy funeral insurance?

It is best to buy funeral insurance from a licensed broker. He can help you find the best policy for the best price. We have a vast network of brokers who are at your service. Just fill out the form on this page to get multiple quotes, free of charge.

Compare funeral insurance coverage in Hamilton

Would you like to save on the cost of funeral insurance in Hamilton? We invite you to compare free and no obligation quotes from our reputable insurance partners.

Our partners are insurance brokers who work with multiple insurance companies. They are not tied to any particular insurer and can offer you the best coverage for the lowest possible price.

When you compare quotes, you are able to choose from a variety of insurance products to save time and money!

Most insurance companies don’t sell funeral insurance directly to consumers but through their in-house agents. If you go to an insurer directly, you can only see their own products, limiting your choices.

Take advantage of our platform to find the right funeral insurance for your needs!
Compare and choose from multiple quotes, free of charge, when you fill out the form today.

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