The Significance of Funeral Insurance for Seniors in Canada

What is Funeral Insurance and why is it Important?
Funeral insurance is the way to make sure the expenses for the funeral of a policyholder are covered. In Canada, the cost of a funeral is high (it can be more than $5,000). In order to financially protect your loved ones in the event of your death, you have the option to purchase funeral insurance. Funeral insurance is available as a no medical product, meaning you can get it without having to have a medical exam.
How Funeral Insurance is Different from Other Types of Coverage
People often cannot see the clear distinction between funeral and life insurance. Funeral insurance is a relatively small policy that is aimed at covering only the costs of the funeral and burial of the policyholder.
On the other side, life insurance has a different objective. It provides funds to replace your income for your family if you die.
There are two kinds of life insurance: term and permanent.
Term life insurance is a policy that has an expiration date and requires renewal, while permanent insurance covers you for a lifetime. You can buy term life protection until a certain age – usually until 65, but if you want lifelong protection without the cost of permanent insurance, you can get a Term 100 policy, which covers you for 100 years. With Term 100, you do not have to worry about renewals or lapses in coverage.
Term 100 is called pure insurance. It covers you financially and does nothing else. Permanent insurance, which is available as whole life or universal life, comes with a savings and investment component that the policyholder can leverage during their lifetime.
Permanent insurance is more expensive than term insurance, but remember: if you buy permanent insurance when you are young and healthy, you will save more over the long term. Term insurance (with the exception of Term 100) renews at a higher rate each year.
Why Seniors Experience Difficulties Getting Life Insurance
The main reason why seniors find it difficult to purchase a life insurance policy is their age. As mentioned above, you can get term life insurance quite easily if you are younger than 65. After that, your age and any age-related health conditions impact your premiums. Additionally, the earlier you buy a life insurance plan (no matter if it is term life or whole life), the cheaper it will be. The difference in the costs of a policy for a 20-year-old would be significantly different than they are for a 40-year-old.
Funeral insurance is a type of protection that is designed specifically for seniors, which is why you do not need to undergo a health exam to qualify for it. Since it is just for final expenses, the coverage is lower, which also lowers the premium.
A funeral insurance policy for seniors can turn out to be very helpful for your loved ones. Thanks to the policy, you can rest assured that your family will not be financially burdened with the cost of your funeral and internment, and that your final wishes will be carried out.
Do you have questions about funeral insurance for seniors? Consult with an experienced insurance professional at No Medical Life Insurance. Take as much time as you need to plan ahead and choose the right policy to cover the costs of your funeral.