Funeral Insurance: Taking Care of Business


When it comes to funeral arrangements, there are dozens of decisions that must be made. From casket designs to burial plots, the details can often feel endless and overwhelming. Funeral expenses can range anywhere from $1,500 to $20,000. For many families, respectfully honoring the death of a loved one can cause some financial strain. Although death is a painful subject, it’s still important to discuss the inevitable. Whether it’s your own death of that of a family member, someone will have to carry the burden of funeral expenses. One of the best ways to prepare for this fact is to invest in funeral insurance.

If you’re unsure whether this option is right for you, here are some aspects to consider. By understanding what funeral coverage entails, you’ll be in a better place to make an informed decision.

What are the benefits?

Also known as final insurance expense, funeral insurance avoids burdening family members with funeral costs when you die. It’s often seen as the final gift you can give to loved ones. With the rising cost of funeral expenses in Canada, it can be difficult to know your inevitable passing may cause a financial burden on the ones you care about most.

Here are some benefits of funeral insurance:

  • Less worry for family members, who will already be grieving
  • Monthly premiums allow a more affordable way to pay for your funeral
  • Many insurance providers will pay out within 24 hours of the claim

Final expense insurance provides peace of mind knowing your funeral expenses are already covered. Friends and family can instead focus their efforts on caring for one another as they mourn your loss during this difficult time.

What’s the difference between pre-need and final expense policies?

When researching funeral insurance, you’ll come across various types of coverage. To determine the best insurance plan for you, it’s crucial to understand the difference between pre-need and final expense policies.

Pre-need Policies

Pre-need policies are usually purchased directly from a funeral home. The benefits will cover the predetermined expenses of your funeral. You’re essentially making funeral arrangements while you’re still alive. Expenses typically include standard funeral home services, funeral merchandise like caskets and flowers, and burial or cremation costs.

Immediately following your death, proceeds from your pre-need policy are paid directly to the funeral home that was chosen during pre-arrangement. It’s also important to note a pre-need policy does not need to be paid in full in a single sum. Insurance plans are available whereby payments can be spread out over several years.

Final Expense Plans

The other option is a final expense plan, which is set up through an insurance company. In this type of policy, you’re purchasing a fixed amount of coverage. Unlike pre-need insurance, the beneficiary can be anyone of your choosing. Death benefits can range from as little as $10,000 all the way up to $50,000. The money can be used for anything, including funeral costs, flying in family members, or unpaid loans.

Because final expense plans are not linked to a funeral home, they usually provide more flexibility. For example, if the beneficiary feels the money would be better used to pay off your medical bills, they can do so without outside approval.

Secondly, you never have to worry about a particular funeral home being sold or going out of business. You’ll also have the freedom to shop around for various funeral items, including headstones and caskets, without worrying about contract breaches.

Who can qualify?

Funeral insurance is available to every individual at an affordable rate. A reputable firm will make sure customers who are ‘high-risk’ have an opportunity to qualify. This means you may not be asked to undergo a medical examination. We encourage people with pre-existing health conditions are to still apply for valuable coverage benefits.

If you’re generally healthy or have few medical conditions that can be managed effectively with medications — have confidence knowing you’ll likely qualify for the lowest possible premiums.

For more information on funeral insurance, call Frank Restorick at
416 884 2104 or Get a quote online here.