When anyone asks about funeral plans vs funeral insurance, people generally say, aren’t they the same thing? The very simple answer is no! they are very different kinds of cover and everyone should be aware of the difference and how it will affect your funeral planning process.
We will show you how both funeral plans and funeral insurance work, and help you make the best choice for you and save your family a stressful time in the future.
What Is Funeral Insurance
As with all insurances, funeral insurance is paid over a period of time and when needed will pay out a set amount or other arrangement depending on the plan. The upside of these insurances is they can be paid over a period of time and can have affordable payment options. The downside is that funeral insurances tend to have a fixed pay out sum and do not take into account the rising costs of funerals over the years.
What Is a Funeral Plan
A funeral plan or pre-paid funeral plan also has payment options from full lump sum payment to flexible payment options, but they greatly differ for funeral insurance. Funeral plans allow a person to plan almost every detail of their funeral and pay all bills before they are needed.
The major upside is that the cost of the funeral is locked in from the outset and no extra payments will be required when they are actioned. Do be aware that funeral plans do not cover every aspect of a funeral. Any person taking out this type of plan should check what is included and if any extra funds need to be put aside to cover this.
Which Funeral Cover Is Best
Now that you know a little more about funeral insurance and pre-paid funeral plans, you can now make an informed choice about what is best for you and your peace of mind for the future. Although both have their upsides, pre-paid funeral plans are the most effective why to pay for your funeral without any worries that your loved ones will be left with a bill or debt at the end.
Funeral Plans Newport
For the best funeral plans in Newport, come to Albert E Hicks and discover the difference, as the best funeral director, we can make to the planning of your funeral. Our trusted respectful team will be able to guide you through each stage of the planning a funeral and give both you and your family that extra peace of mind for the future.