Top 2 Reasons Why Life Insurance Must Be Coupled with Funeral Pre-arrangement

Why Having an Insurance is Not Enough When There is Death
Edna Navarro

Don’t get me wrong.  I am not against life insurance.  I am a proponent of having life  insurance to protect loved ones left behind   However,  there is another consideration to give families a true peace of mind and that is pre-planning for funeral and cemetery. 

 Insurance policies may  not be  protected against inflation.  Prices of funeral and cremation and cemetery products and services continue to rise while the coverage may remain the same.  There may not be enough left to survivors from insurance proceeds after covering a funeral expenses.    Since funeral and cremation costs are subject to inflation, pre-arrangement allows one to lock the price at today's cost. Consider Martha (not her real name) who is from Texas, but now living in the  Bay area. She was 30’s and had her third child when she bought a burial insurance for $2,500.  Today, Martha at 84 is healthy for her age, although frail, can cook and take the bus for her medical appointments.  Compare above scenario with Janice (not her real name) who is now 77.  She was 39 in 1974 when she decided to  purchase her plot for about $500, and her funeral service for about $1,400. “Do you know,” I asked her, “ how much it would cost you if you purchase these services today?”  And, “What made you buy?” I asked again.  “ I just thought that was the right thing to  do for my two kids.”  Gleaming with pride and  delight, she added,” I am so glad I did”.

Insurance cannot make the many decisions that are required at the time of need (meaning when there is death).  Even with insurance in place, the actual funeral or cremation service still needs to be arranged. To finalize a service, there are countless questions that need to be answered.  These questions may be related to information about the decedent, the choice of moralization, funeral options- flowers,   visitation,   information needed for a death certificate, and many more information that could be daunting in time of grief.  Coupling insurance with a funeral arrangement relieves the family of attending to the details while grieving and least prepared.