Death and Taxes

You know that you’re going to die. It may sound morbid, but it’s true. The last thing you want is to burden your family with the costs of organizing your funeral. Depending on the type of send-off you want, a funeral can cost tens of thousands of dollars. Wouldn’t it be better to plan for this type of expense in advance?

One way that you can prepare for the financial cost of your death is to get funeral insurance, also know as pre-need insurance. There are several different ways of going about this. Some people just want a pot of money to cover the cost of the funeral. Others prefer to plan every aspect of the funeral in advance.

Do you want to be buried or cremated? Will your remains be placed in a grave or sit in an urn on a mantelpiece? Do you want your body to be embalmed for a public viewing? What kind of casket would you like? What about the gravestone?

You may not want to think about the details of your own death, but someone is going to have to make these decisions. Would you rather the burden fall on your distraught family, at a time when they have so much else to worry about? Avoid this by planning for your funeral in advance.

Like with other types of insurance, rates vary hugely. Call several insurance companies and ask for a pre-need insurance quote. Be wary of dodgy internet insurance scams that sound too good to be true. Unfortunately, many of the people who fall for them are the people who really cannot afford to lose that money. It’s better to go with an insurance company that you recognize.

You will need to decide the size of the policy. A small, simple funeral will cost less than a lavish one. Cremation is cheaper than burial. Read the small print so you know what’s covered. Some policies only cover the funeral while others will cover taxes and certain medical bills.