Death insurance and funeral insurance are frequently confused. These two guarantees are intended, in particular, to support financially close la suite du morte. However, their purpose is different. Taking out a death insurance policy mainly protects the spouse and / or children from the financial consequences of a premature death. The purpose of signing a funeral contract is to finance the funeral in advance (the guaranteed capital is dedicated exclusively to the funeral).
Find out below the specifics and differences between death insurance and funeral insurance.
Death insurance: a temporary guarantee
Death insurance protects those around you from the risk of premature death of the insured. Its purpose is to protect the spouse, children or any other designated beneficiary from a loss of income. The idea is to see a free capital or rent to use to maintain the standard of living and help with current expenses in the foyer, finance a possible project …
In the case of death insurance, we speak of a “temporary” guarantee. The protection of a death insurance contract is often limited to a certain period (1 year, 10 years…). In other words, if the death occurs before the date set in the contract then the death benefit is paid to the designated beneficiary (ies). If the insured dies after the term of coverage, the capital of the bare death insurance will therefore not be paid.
Another difference: more demanding underwriting procedures in the case of death insurance. A medical questionnaire is essential for the insurer, which must be aware of the health risk.
The death insurance contract is therefore a solution often taken out for a person still in business, a couple with one or more children in pregnancy, an unmarried couple.
Funeral pensions: a guaranteed capital
Funeral insurance (also called funeral insurance or funeral convention) is intended to be a solution dedicated to funeral care. Depending on the type of contract entered into, it is for the subscriber to:
- provide only funding for all or part of funeral expenses. This is the capital funeral contract.
- provide for both the organization of funerals (all funeral services and services: burial or cremation, civil or religious funeral ceremony, coffin range, rest of the deceased at the funeral home …) and the financing for the advance of an adapted capital. This is the funeral contract for benefits.
In either case, the funeral provision guarantees the payment of a revalued capital regardless of the age of the insured at the time of death. We then speak of a lifetime or lifetime warranty.
To sign a funeral pension is to choose serenity. Everyone can finance and even plan their funeral without having to make a declaration of good health or fill out a medical questionnaire. In addition, funeral insurance solutions are often flexible and scalable (optional guarantees have been met to meet the needs of everyone). And the insurance premium for the financing of the capital remains fixed, regardless of the duration of the payments chosen.
Good to know :
Depending on the age of the writer, the method of financing the guaranteed capital or obsèques contract may take the form of:
- Of a single contribution: a single payment.
- Periodic premium contributions: monthly, quarterly or annual payments, for a period defined in advance.
- A lifetime premium contribution: lifetime payments. Which way of financing is not recommended. Indeed, the amount paid may ultimately exceed the capital guaranteed under the contract. That’s why some stores don’t offer lifetime payment.
In the case of a funeral contract, it is recommended that you contact your ROC ECLERC funeral home in particular. The quality of their funeral contracts has been compensated by the label Excellence: it is the highest distinction awarded by the experts of the Dossiers de l’Épargne. The advisors will be able to provide all the useful and necessary information for your approach. They also provide the best support. They provide, upon simple request, a free, no-obligation, detailed, clear and transparent quote on funeral services.