Nowadays you need money to bury a loved one. And a full funeral, depending on the wishes of the bereaved, can cost several thousand dollars and thus far exceed the personal financial framework available, so that one has to take out a loan for the funeral.
The funeral expenses must be borne by the bereaved.
There is one exception, however. This exception is an insurance benefit. If the deceased has taken out life or death insurance, this can be used to cover the costs. In many cases this is not the case. The families only have to take out a loan in order to hold a funeral that is dignified and in accordance with the wishes of the deceased. And to meet these funeral criteria, many families are ready to borrow immediately.
However, it is advisable to carefully check the conditions here as well. The background to this is that funeral homes now work with various banks to offer a funeral loan themselves. In this case, the creditworthiness of the respective family or potential borrower is checked in advance. A funeral loan is usually taken out of the amount of the funeral expenses so that it can be paid back in a short time. The rate is adjusted to the financial options of the bereaved.
However, in order to save the surviving dependents from borrowing, it is advisable to take out death insurance as personal provision. This death insurance can also be taken out with little financial means. Another important aspect for this type of provision is the fact that the formerly paid death benefit has been abolished and is therefore no longer available.
If you have decided to take out death benefit insurance, you have taken the first step in terms of providing for death. As an insured person, you can determine the amount of the insurance yourself and determine in advance which funeral home should be considered for the funeral or which one should be carried out and which framework should be kept for this. However, it is not easy to deal with your own funeral as a living person. However, it always makes sense. This type of insurance can still be taken out in old age. Health aspects and points are usually not queried.
It remains to be seen that with the appropriate provision, the family will not face financial difficulties in the event of death.