More and more people are encouraged to take out Life or Funeral insurance in order to protect their family’s future when they are gone. But, does these two types of insurance carry out the same function? Although both commence after the passing (or disability, in Life insurance) of the insuree, the coverage they have is different.
Funeral insurance covers expenses related to the insured’s funeral and different administrative procedures that this generates. This insurance provides a service to the relatives so that they do not have to worry about paying for the funeral or managing the necessary documentation in those hard times.
Although Life-Risk insurance offers financial compensation to the beneficiaries of the policy after the death of the policyholder. It is a fixed amount (or various quantities) that the insured has established in the contract. With this insurance insuree intends to maintain the economic stability of his loved ones in the future when he is departed or suffers an accident that prevents him from generating the needed income.
In addition to these benefits, both types of insurance usually include additional exclusive guarantees (optional in some cases). For example travel assistance or the creation of the will online for Funeral insurance, or coverage related to the absolute or permanent disability for Life insurance.
Therefore, choosing one or another insurance will depend on the individual necessities. To clarify, Life Insurance and Funeral Insurance are not incompatible, but complementary. As an example, if you want to offer greater protection to your loved ones in the future, it is not uncommon to take out both insurances, since their purpose is different.
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