There are a variety of different Funeral Insurance Plans that can be purchased in Canada. The cost of a plan depends on your personal preferences and the type of coverage you want. You can receive a quote for funeral insurance from various companies, and decide which one will work best for you. You will then pay monthly premiums until the death of the insured person, and when the time comes to claim the payout, the funds will go directly to your beneficiaries.
How to Choose Funeral Insurance Plans in Canada
Term, whole life, and medically underwritten funeral insurance are the three main types. Term insurance costs less than its other counterparts, but the benefit period is limited. Often, term insurance offers only a ten-year benefit period, so you’ll need to renew it frequently to get the full benefit. You will also need to keep up with the premiums, since they can increase over time. Buying a Funeral Insurance Plan will protect you from rising costs.
There are several types of Funeral Insurance Plans. Term plans are similar to regular life insurance, but they don’t build cash value. Unlike other policies, they don’t let you borrow against the policy. A final expense plan is called a “prepaid” funeral plan, and it’s different from a “Pre-Need” plan. The primary difference between a Term plan and a Pre-Need plan is that the latter is intended to cover the cost of burial.