FUNERAL INSURANCE: THE DIFFERENT TYPES OF CONTRIBUTIONS. Funeral expenses can be high, which is an additional problem for the relatives of the deceased for whom the situation is already difficult enough. Thanks to funeral insurance, you have the possibility of financing all the expenses and therefore lightening the task for the family. By subscribing to this insurance, you have the choice between different forms of contributions.

A quick note on funeral insurance

This is a contract that allows you to plan the financing as well as the organization of your funeral. The goal is to free your relatives and friends from the financial or administrative constraints they may face. We distinguish two forms of funeral financing on the market:

  • a capital intended for the financing of the funeral: you designate one or more beneficiaries who will receive the capital when the time comes in order to finance the ceremony. In this case, the organization is not at the expense of the insurance, only the capital is paid,
  • the financing and organization of the funeral: the insurance takes care of both the financing and the organization of the funeral. This is a solution that further lightens the task for your loved ones and insured the possibility of giving some indications as to the organization of the ceremony.

In addition, additional services may be available. To find insurance whose offers are right for you, use the online comparator. For example, you can follow this link to compare your different funeral insurance offers. We advise you to evaluate several criteria starting with the cost of the contract. Some companies offer much better deals.

This criterion is all the more important if you choose the second form of financing. You need to check all the services that come into play. Don’t overlook the flexibility of the contract. Indeed, many reasons can lead you to want to modify your funeral insurance contract over time. Make sure your company offers you this possibility. Finally, make a choice according to the method of contribution which is also an essential criterion.

The single contribution

The single contribution is the first form of contribution for which you can opt. As the name suggests, this option involves a one-time payment. Payment is made when the contract is signed. Regarding the amount of the contribution, it is lower than the capital provided for in the contract, that is to say the amount that will be paid to your relatives. This for the simple reason that the amount paid will generate interest over time. This interest will be added to the starting amount to form the capital.

Funeral insurance: the temporary contribution

With the temporary contribution, the capital is built up over a much longer period. However, in certain rare cases, the contribution may be semi-annual or annual. This is also a choice that is up to you. During this period, regular payments allow you to gradually build up your capital.

Lifetime contribution

When you opt for a lifetime contribution, you agree to pay a fixed contribution every month. This is valid until your death.

This is an option that we do not recommend to subscribers under the age of 70 because all the contributions in this case generally exceed the subscribed capital. If you start your contributions late, on the other hand, the life contribution will be the best solution to quickly reach your capital.

As you will have understood, for a funeral insurance contract, three contribution options are available. Make the right choice based on your age and the capital you plan to raise for your death.

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