Choice is often a good thing. When it comes to personal insurance for example, the plethora of types of policies available makes it possible for people to find the exact kind of policy that's right for them. On the other hand, it could lead to tons of confusion too. Chances are that you may end up with a policy that you don't really need, or one that does not completely provide you with the coverage that you require.
Life insurance and funeral insurance are two that still confuse a good number of people. That is why in this article, we will share with you some of the features that both types of insurance share, as well as those that make them different from each other. That way, you will be able to determine exactly which one is right for you. Ready? Let's get started.
Here are number of similarities between life and funeral insurance:
- Both provide lump sum payments. That means your family could use the money immediately for the required expenses. We'll talk more about this later.
- Both are paid out in the event of the insured's death. When you die, that's the only time when your beneficiaries will receive the payment.
- They both provide peace of mind. Your loss would likely create an emotional turmoil in your family. It's therefore important to never aggravate it with financial problems as well. With life or funeral insurance, your family will have the funds for your funeral, for the repayment of your debts, as well as for their daily expenses.
Meanwhile, here are areas where the two types of insurance differ:
- How the money will be used. The beneficiaries may use the funds received from a life insurance claim for whatever purpose they see fit. Again, these may used to repay debts and for household expenses. The payment from funeral insurance, however, may only be used for the expenses related to the funeral and nothing else. These include the casket or urn and the expenses in the funeral services.
- Medical exams. Funeral insurance does not require applicants to undergo any medical exam. The same cannot be said for life insurance, as a medical will usually be required. While there are 'no medical' policies, these tend to be more expensive in terms of the premiums.
If you want to find out more about which type of insurance is for you, talk to the consultants at Rate Detective today. They will help you find the best policy for you based on your needs as well as your choice from Australia's top insurance companies. Contact us today for more details!