It is relatively uncommon for one to plan for his own funeral. It is actually a less enjoyable event. However, it is one very important thing for you to consider. This will often ensure that the burden that comes with funeral expenses is eased from your family. You will note that it is often quite challenging to pick the best funeral insurance policy. It is important for you to understand a number of aspects about this particular type of insurance. Keep on reading so as to understand this much better.
You will realize that this is a permanent insurance. This is due to the fact that these kind of policies are hardly characterized by a specific term. This implies that this policy will not expire for as long as you make the payment of your premiums right on time. Given that this policy features a cash value, you can easily use it to build-up deferred tax savings. There is a possibility for you to withdraw from these savings. In fact, you can easily use this policy as security for credit. However, any withdrawal will affect the policy’s death benefits. You will note that the premiums of the policy will often differ according to age. The younger the applicant, the lesser premium he will pay. The process behind the acquisition of this policy will often be rigorous.
You will learn that these burial insurances will often come with two benefit levels. There is usually the level benefit and the graded benefit. The level benefit is characterized by the face value of the policy remaining in force as soon as the application is in place. With a graded benefit, you are assured of a waiting window of about 24 months. In the event that death happens within this window, the insurance will be required to return the contributed premium and its interest only. The interest will every so often be charged at a rate of ten percent. With this information, you will be able to make a wiser choice. Always go for what you find more appropriate and convenient for your situation.
It is necessary for you to understand that there are a number of aspects to take into consideration when looking for this policy. You need to understand the pros and cons of a policy before you choose to stick to it. You will note that there are times that no medical test will be done. You will find that applicates will be required to commit to a 2-year suicide as well as contestability clause. Ensure that you do enough research on it.