Are you considering funeral insurance Canada? If so, congratulations on taking an important step in financial planning. Many people underestimate the cost of funeral expenses, so it’s great that you’re exploring your options. This guide will help you understand the landscape of final expenses in Canada.

Understanding Funeral Insurance Canada

Funeral insurance, also referred to as:

1. Final Expense
2. Burial Insurance

End-of-life insurance is intended to pay for expenses related to your funeral, burial, or cremation. Many people opt for this insurance because it can be quite expensive to cover these costs and their family members will have to bear the burden if they don’t plan. So, how much does it cost to have a funeral in Canada? Well, it depends. Let’s take a look now.

How Expensive Is a Cremation?

Cremation is a more cost-effective option compared to traditional burial. In Canada, cremation services usually range from $2,000 to $5,000. This cost includes essential services such as removing the body, transporting it to the crematorium, cremation, and returning the ashes to your family. However, additional expenses may apply for optional services such as memorial services, urns, or scattering of ashes. Depending on what you want, the costs can go up pretty quickly.

How About a Burial?

A traditional burial in Canada is much more expensive, ranging from $8,000 to $15,000 or more, depending on the kind of service you select. These costs typically include the basics such as transporting the deceased to the funeral home, embalming, buying a casket, a gravesite, a headstone or grave marker, and covering other administrative and service fees. However, some optional services like memorial services, flowers, transportation, and catering for a reception add extra expenses.

Please remember that funeral costs vary significantly depending on the city or province.

The Importance of Funeral Insurance in Canada

It’s important to plan your funeral if you want to provide financial stability for your loved ones and ensure a proper send-off. Unfortunately, some people fail to think about these details until late in life, making it more complicated and costly.

That said, funeral insurance in Canada is a great option to help ease the burden on your family and ensure your arrangements are taken care of. This type of insurance policy allows you to make provisions for those you love in an organized manner and removes the onus of your funeral from your family. Can you imagine your loved ones getting hit with a $15,000 bill if you were to pass away suddenly?

Funeral insurance provides peace of mind for you and your family.

How Does Funeral Insurance Canada Work?

Traditional funeral insurance in Canada is designed to cover the policyholder’s burial or cremation expenses. These policies pay a lump sum to the beneficiary upon the policyholder’s death, which can be used to cover the funeral costs.

Final expense policies are designed to benefit your loved ones whether you pass away tomorrow or when you’re 90 years old. Therefore, all funeral insurance plans must be permanent and guaranteed for life. Term insurance is not appropriate coverage for final expenses. If any insurance agent tries to sell you a term life insurance policy to cover final expenses, you should run in the other direction.

The vast majority of final expense policies are small whole-life insurance policies. When I say small, I mean anywhere from $5000 to $25,000 of coverage. These policies should have the following guarantees:

• Guaranteed level death benefit
• The monthly cost will never increase
• Paid out 100% tax-free to your loved ones
• No medical test is required to apply
• It can never be canceled because of any change to your age or health

Permanent Life Insurance Costs More, and This is Why

Because life insurance companies know they will pay out an insurance claim, permanent insurance costs more than term coverage. If you’re a senior and someone says you can be covered for $19 monthly, it’s probably too good to be true. Final expense insurance isn’t cheap but shouldn’t break the bank either. Having said that, if you wait until you’re in your late 70s or early 80s and have some health issues, you’ll pay more than someone who secures a policy in their 60s or early 70s.

Have Serious Medical Issues? You Can Still Get Funeral Insurance in Canada

Guaranteed issue funeral insurance is an option for those who may have difficulty obtaining coverage due to health issues. These policies do not require medical exams or health questions, making them accessible to more individuals. However, they may come with higher premiums.

Benefits of Funeral Insurance in Canada

Let’s imagine you die tomorrow. You are healthy and have a good life, and there was no immediate reason for you to think about final expenses. You have some savings but didn’t leave a will; now, your estate is tied up for the foreseeable future.

Your children are facing some financial challenges. Your daughter recently purchased a new house and is finding it hard to manage her finances while your son is still studying in college. They are aware you expressed a wish for a burial and a memorial.

Although you have some savings to cover the costs, they are not readily accessible, and your children must pay for the funeral upfront. As a result, they have to come up with $15,000 in cash, which they don’t have. This problematic situation sadly is not uncommon when people pass away without warning.

Funeral insurance policies in Canada are customizable and can be tailored to individual preferences and needs. Policyholders can choose the coverage amount, type of funeral services, and other specific details. These policies also provide a quick payout to the beneficiary, expediting the process of covering the immediate expenses associated with the funeral.

Considerations When Choosing Funeral Insurance:

1. It is important to determine the required dollar amount to cover funeral expenses adequately. If you are planning your funeral, remember that these costs are subject to inflation. I always consider a client’s age when deciding on the coverage amount.
2. Consider the type of service desired, cremation/burial costs, and additional expenses.
3. Be honest about finances. It’s essential to choose a policy with premiums that are affordable and fit within the budget.
4. Call a reputable independent life insurance agent, like those at Policy Architects. We will get you the best coverage for the lowest cost.

“I think the biggest key here is to determine your budget and then kind of work from there,” …. “You can still have a wonderful memorial, and it doesn’t have to cost much money.”

From cremation to estate planning, here’s how to keep the cost of death down, City News

Get the Best Funeral Insurance Canada – Call Us Now!

Funeral insurance is a crucial aspect of end-of-life planning in Canada. Its purpose is to ensure individuals can make arrangements for their final expenses without burdening their loved ones financially.

By considering coverage amount, affordability, and policy terms, Canadians can make informed decisions and provide their families with financial peace of mind during difficult times.

Call Policy Architects today, and we will match your situation with the right insurance company to find you the most affordable funeral insurance in Canada.