In the last few years, we have seen the price of funerals in Canada rise by as much as 80%, with the family of a deceased person spending an average of $5,000 to $15,000 for a modest funeral.
Arranging a funeral of a loved one is a very stressful and difficult experience and financial worries can only compound it.
With final expense insurance, a senior can make one final gesture of love and affection by relieving the family of this difficult burden.
You may already have a life insurance policy but it may not be enough if you have other expenses or plans to be covered.
If you are not sure, it is worth checking your coverage particularly if you have taken out your policy decades ago. Revisiting your coverage will allow you to evaluate your current situation and future needs.
Cash value insurance to pay for expenses after death
Final expense insurance has cash value; hence, it works like permanent insurance that gains value over time without any increase in premiums. It can be used to pay for funeral expenses, medical bills, taxes, and other expenses at death.
Your beneficiaries can also choose to use the cash benefits as they see fit or in accordance with your wishes.
Consider a final expense insurance policy to make sure your affairs are settled when the time comes. Some policies don’t require a medical check if you are between 40 to 80 years old, making it the easiest coverage for seniors to obtain.
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Most of us never take the time to check the cost of a funeral until the time comes when a family member dies. Without a funeral plan or final expense insurance coverage, the expenses related to a funeral can be quite hefty and cause more worries at an already difficult time.
How much will it cost? This is the question most often asked by surviving members of the family. But there is no simple answer as the price varies greatly based on your location, choice of funeral home, choice of casket and services, burial or cremation.
Surveys show that the average cost of a simple funeral in Toronto is $8,500. A standard funeral starts at around $5,000 and can go higher at $15,000 with the addition of other miscellaneous expenses such as flowers, visitation, plot, grave marker, etc.
Below is a comparative table of funeral expenses to guide you.
Expenses for a traditional funeral
Outer Burial Container
(mahogany, bronze, copper)
can cost as much as $10,000
Expenses for a traditional cremation
· The average cost of cremation in Toronto including a cemetery plot is $7,000 to $8,000. Because of its lower cost, many Canadians are choosing cremation or direct cremation.
· Funeral homes offer different cremation packages with prices that range from $2,000 to $10,000. The price is expected to increase by as much as 70% by 2030.
For many people, the cost of a funeral is a financial burden, especially when it is sudden. With final expense insurance, you can relieve your loved ones from this difficulty so they can mourn your loss without worrying about expenses.
Compare prices of final expense insurance for seniors in Toronto. Get valuable advice from our reliable insurance partners and brokers, free of charge!
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Are you confused about life insurance and final expense insurance? Well, let us explain a bit more to help you decide about the future.
Final expense insurance is a subclass or category of life insurance. Their details, cost and benefits, are different, though.
Life insurance provides financial support to your beneficiaries to replace the loss of your income. While it can also pay for anything after death, the principal goal of life insurance is to protect the financial security of your dependents. Thus, the insured amount of a life insurance policy can be as large as $500,000 to $2 Million.
Final expense insurance, on the other hand, is more specific and limited. It is designed to cover end-of-life expenses such as burial and funeral costs. For this reason, many people call it burial or funeral insurance. The insured amount is typically low, from $5,000 to $20,000. There are insurers who offer a maximum insured amount of $50,000.
Once you own a final expense insurance policy, you can name anybody you wish as a beneficiary. This person is usually the relative tasked to make your final arrangements.
If you have no relative to do this, it can be anybody you can trust to execute you final wishes.
A lot of seniors think they don’t qualify for life insurance but final expense insurance is easier to obtain.
If you need peace of mind for final expenses, connect with our reliable partners today!
If you research what options you have for paying funeral expenses, you will come across funeral plans to help pay for a funeral or burial.
Funeral plans are pre-need plans offered by funeral homes. Generally, you take out a customized funeral plan of your choice (casket, ceremony, visitation, flowers, music, etc.) and you can pay for the cost in installment over a fixed period.
In other words, it is like paying for your funeral in advance but in staggered payments. You get the opportunity to personally choose what you want while you are alive.
The payments are made directly to the funeral home which will delivery your funeral arrangements. At the time of death, your loved ones will use the plan you purchased without having to pay additional fees.
Pre-need plans cannot be transferred or converted to cash.
A funeral plan can be a good choice for seniors who want to personally make their funeral arrangements. If you aren’t this type of individual, your best option is a final expense insurance coverage.
Note that there are financial risks to buying a pre-need funeral plan. The business can cease to operate, go bankrupt, etc.
What’s the bottom line?
The reality is that when you pass away, your loved ones will have a difficult time emotionally and financially. The best thing you can do to reduce the burden is to prepare the funds to pay for your final expenses.
Planning for final expenses does not have to be so bothersome. You don’t need to visit an insurance company or a funeral home to get it done.
In today’s digital world, it is very easy and convenient to find the best plan to set-up financial arrangements for your end-of-life expenses. In fact, you don’t need to step out of your home to do so.
Just fill out the form on this page to receive FREE and NO COMMITMENT quotes from our reliable insurance partners. Compare offers and choose the best one that suits your needs and budget!
Rest easy in knowing that you have given your family the final gift of love with final expense insurance!
As mentioned earlier, funeral plans are purchased directly from funeral homes.
According to the Consumer Protection Ontario, your money is protected by the Prepaid Funeral Services Compensation Fund managed by the Board of Funeral Services.
Funeral plans typically cost from $10,000 to $25,000 paid in monthly installments to a funeral home of your choice.
You or your legal representative can change or cancel your prepaid plan before the provision of a funeral service or products as long as you inform the funeral home in writing. You may or may not get a refund of money already paid depending on the stipulations of your contract.
A distinct advantage of a funeral plan is the assurance that the services and products included in the pre-paid plan will be provided at the time of death without extra cost.
How much does final expense insurance cost?
In contrast, a final expense insurance policy has a limit in terms of the cash benefit. This means that the insured amount may not be enough to pay for all funeral expenses at the time of death. This depends, of course, on the future prices of services and products selected.
For instance, some policies may have an insured amount of $10,000. At the moment, the average cost of a funeral in Toronto is from $7,000 to $8,000. However, the cost has been increasing steadily in the last decade.
The biggest advantage of a final expense insurance policy is flexibility. A designated beneficiary receives the cash benefits and has the discretion to use the funds as he sees fit. It is not tied to a particular funeral home or a particular type of funeral plan or service.
This means that a final expense insurance policy is not only for funeral expenses. It can also cover final bills such as medical bills, credit card bills, loans, etc.
To give you an idea, refer to the table below for the cost of premiums for a $10,000 policy for a 70-year-old individual.
** These are not actual quotes from an insurer and are for illustration only. Insurers have different prices based on age, health, and other factors.
Of course, premiums are lower for younger seniors and those who choose to answer a health questionnaire or take a medical check.
It is worth noting that some final expense insurance policies don’t require a medical check, allowing even seniors in poor health to get coverage.
Called guaranteed issue final expense insurance, they are quick and easy to get but are the most expensive in the market.
Guaranteed issue policies don’t ask health questions or require medical checks. Hence, they are very popular among seniors with health issues or advanced age. The application process is hassle-free and approval is almost certain, allowing even hard-to-insure individuals to get life insurance coverage.
If you choose this type of coverage, there are certain drawbacks you cannot avoid.
First of all, because insurers take on a bigger risk in providing you with coverage (no health check), the price of premiums for this type of policy is much higher. Further, most insurers have a waiting period (2 years for most insurers). This means that if the insured dies within the 2-year period, only premiums are refunded but no death benefits are awarded to the beneficiary.
This is why it is CRITICAL that you act today and apply for your final expense insurance coverage if you believe a guaranteed issue policy is your best option.
So why is it a good option to get guaranteed issue final expense insurance? If you choose to get a plan with underwriting (health questions or medical check), you can get cheaper premiums and shorter or no waiting period.
Generally, coverage for the same insured amount and no waiting period is the best option. But policies with underwriting will look at your age and health status first. Simplified issue policies will simply ask for a health questionnaire and some pre-existing conditions are still allowed.
But if you have serious health conditions and have been denied life insurance in the past, your only option may be guaranteed issue policies.
Speak to life insurance experts and connect with our experienced insurance partners using our short online form today!
Do you feel unsure about buying final expense insurance? The following questions and answers may not be what you need to help you make a smart choice.
Is it worth buying final expense or funeral insurance?
Final expense insurance is a type of coverage that you get to pay for your funeral expenses. It is a good idea to plan your funeral to save your loved ones from the stress and financial burden when the time comes. Because you pay monthly (in premiums), it will not require a huge cash outlay compared to paying for a funeral outright.
I already have life insurance. Do I still need final expense insurance?
Life insurance proceeds can certainly pay for funeral expenses if your beneficiary does not need to have your income replaced. In short, if your beneficiary can live comfortably without your financial support, you probably don’t need the additional coverage.
However, if the purpose of your life insurance is to support your loved ones, you may want to relieve them of the financial burden of paying for your funeral. By taking out a final expense insurance policy, you can make sure that your beneficiary gets to enjoy your life insurance benefits and your final expense insurance policy will pay for your end-of-life expenses.
What can final expense insurance be used for?
Final expense insurance is designed to cover expenses for a funeral or burial but can also be used by a designated beneficiary to pay for medical bills and other last expenses.
How much are premiums for final expense insurance?
There are no set amounts because just like traditional life insurance, insurers base your premiums on gender, age, health, location, and the insured amount. Typically, a policy for $10,000 will carry a monthly premium ranging from $30 to $70 a month.
How long does final expense insurance stay valid?
The good thing about final expense insurance is that It is lifetime coverage. The policy cannot be canceled once issued as long as you continue to pay your premiums. The death benefits will be paid to your beneficiary regardless of when you die as long as it is not within the waiting period.
How can I qualify for final expense insurance coverage?
If you only need a small amount of coverage ($10,000, $15,000, or $20,000), you can qualify for final expense insurance by applying for an underwritten policy with a medical check or health questionnaire. This is a good idea if you are relatively in good health. Otherwise, you can apply for coverage with a guaranteed issue which does not require a medical check or health questionnaire. Anyone can qualify as long as within the age requirements (varies among insurers) and you can afford to pay the higher premiums.
How is whole life insurance different from final expense insurance?
Whole life insurance and final expense insurance are similar in that they both provide lifetime coverage.
The difference is in the lower death benefits. While whole life insurance can insure you for as much as $5 million, a final expense insurance policy is typically from $5,000 to $25,000. They both have cash value and pays out guaranteed death benefits.
First of all, it is important to buy a final expense insurance policy from an independent broker that specializes in this type of life insurance.
In fact, this is the most critical step to saving money on your policy.
Independent brokers are able to transact with various insurers and can shop for the best prices for you. You get more options to choose from so you can save time and money for best value. It is really very simple!
If you buy directly from an insurance company or through their agents, you only have 1 insurer to consider. You may end up paying too much for your coverage or getting inadequate coverage.
If you want peace of mind and be assured of funds to pay for burial or final expenses, today is the time to take action. Each day you wait could cause the price of your premiums to increase and prolong your waiting period.
Our insurance partners are waiting to hear from you so they can help you get your final expense insurance policy! Fill out the form on this page now and receive you FREE QUOTES to suit your budget.
Now that you know how a final expense insurance coverage can help you set aside funds for end-of-life expenses, you can start looking for the right policy within your budget.
We can help you connect with reliable insurers in Toronto who can offer you FREE and NO OBLIGATION quotes to compare and choose from.
Our network consists of licensed and experienced brokers who work with various insurance companies. They can look for the lowest premiums for your coverage so you can save time and money! Best of all, you don’t pay anything for their services and you are under no obligation to buy until you are 100% satisfied.
Don’t miss out on securing the future with final expense insurance coverage in Toronto!
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