What are final expenses? Funeral and burial expenses. Which in Canada are costly and rising rapidly. The Canadian Pension Plan provides up to $2,500 of death benefit. But actual funeral and burial costs can easily exceed $10,000. Where will the remainder come from? Why not spare your family the burden of these expenses at a difficult and emotional time?
In fact, burial insurance is a very old type of life insurance which is paid out upon death to cover final expenses, such as the cost of a funeral. The Greeks and Romans introduced burial insurance circa 600 CE when they organized guilds called “benevolent societies” which cared for the surviving families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose, as did friendly societies during Victorian times.
“Nobody can guarantee you immortality”.
This life insurance policies are limited premium payment whole life policies that, although available at almost any age, are usually purchased by older applicants. This type of insurance is designed to cover specific funeral expenses when the insured person dies, which the applicant has designated in a particular funeral goods and services contract with a funeral home.
The policy’s death benefit is initially based on the total funeral cost at the time of prearrangement, and it then typically grows as interest is credited. In exchange for the policy owner’s designation of the funeral home as the primary beneficiary, the funeral home will typically guarantee that the death benefit proceeds will cover the future cost of the selected goods and services no matter when death occurs.