How Much Does A Funeral Cost and
Does Life Insurance Cover It
There are certain topics that many of us tend to not like talking (or even thinking) about. Death is a big one. Most people shy away from the topic until they or a loved one is facing it. With so many unfamiliar details surrounding the subject, the rest of us are left knowing very little. For instance, do you know how much the average funeral costs? In Canada a funeral usually costs around $8500. This may explain why a lot of people ask: Does life insurance cover funeral costs? The simple answer is yes.
The total cost of a funeral depends on a long list of details
Many funeral homes don’t publish costs because there are many decisions that need to be made about the service and the internment, and these are best discussed in person with a knowledgeable, compassionate professional. One thing to note is that costs can vary greatly between provinces and funeral providers. Regardless of where you live and which provider you choose, you’ll need to decide on a myriad of details — each of which comes with an associated fee. If you want to include all the extras, what can start out as a traditional burial at an estimated cost of $5000 can easily escalate to $15,000 or more.
While cremation cost can be less, it may still be pricey
Many people prefer cremation for a variety of personal reasons; this option typically amounts to 25% of a burial cost. But while a simple cremation can tally up to around $600, by adding a service, viewing, urn and flowers, that cost can quickly increase to $4000.
Life insurance can be used for final expenses. And, the funds are tax-free
One of the greatest gifts to loved ones is to ensure that final expenses are covered. An easy way to do this is by having a life insurance policy in place. Not only could a life insurance payout cover funeral costs, but it could also help loved ones cover day-to-day expenses, tuition, childcare, or mortgage payments. A loss of a family member is difficult enough to face; dealing with financial challenges on top of that could be devasting.
While talking about death is uncomfortable, it’s a reality that we all face. But we can all help make things easier on loved ones by being prepared. A good place to start is to take care of financial obligations by putting a plan that includes final expenses insurance in place.
Planning ahead to cover final expenses is one of the most thoughtful and lasting acts you could do. Learn more by either speaking with your advisor or call Canada Protection at 1-877-851-9090.