Death insurance and funeral insurance are frequently confused. These two guarantees are intended, in particular, to financially support relatives following death. However, their purpose is different. Subscribing to a death insurance contract mainly allows you to protect your spouse and/or children from the financial consequences of premature death. The purpose of taking out a funeral contract is to finance the funeral in advance (the guaranteed capital is dedicated exclusively to the funeral).
Discover below the specificities and differences between death insurance and funeral insurance.
Death insurance: a temporary guarantee
Death insurance protects those around you against the risk of premature death of the insured. Its objective is to protect their spouse, children or any other designated beneficiary from loss of income. The idea is to pay a capital or an annuity free of use in order to maintain the standard of living and help with the current expenses of the household, finance a possible project…
In the case of death insurance, we speak of a “temporary” guarantee. The protection of a death insurance contract is often limited to a specific period (1 year, 10 years, etc.). In other words, if death occurs before the date set in the contract, then the death benefit is paid to the designated beneficiary(ies). If the insured dies after the duration of cover, the capital of the death insurance will therefore not be paid.
Another difference: more demanding underwriting procedures in the case of death insurance. A medical questionnaire is essential for the insurer, which must know the risk related to the state of health.
The death insurance contract is therefore a solution often taken out by a person still in business, a couple with one or more dependent children, an unmarried couple.
Funeral insurance: guaranteed capital
Funeral insurance (also called funeral insurance or funeral agreement) is intended to be a solution dedicated to the management of funerals. Depending on the type of contract taken out, for the subscriber it is:
- provide only for the financing of all or part of the funeral expenses. This is the capital funeral contract.
- provide both the organization of the funeral (all funeral services and benefits: burial or cremation, civil or religious funeral ceremony, range of the coffin, rest of the deceased at the funeral home, etc.) and the financing in advance of an appropriate capital . This is the funeral benefits contract.
In either case, funeral insurance makes it possible to guarantee the payment of a revalued capital regardless of the age of the insured at the time of death. We then speak of lifetime or whole life guarantees.
Taking out a funeral insurance contract means choosing peace of mind. Everyone can finance and even plan the course of their funeral without having to make a declaration of good health or fill out a medical questionnaire. In addition, funeral insurance solutions are often flexible and scalable (optional guarantees make it possible to meet everyone’s needs). And the insurance contribution for the financing of the capital remains fixed, regardless of the duration of the payments chosen.
Good to know :
Depending on the subscriber’s age, the method of financing the guaranteed capital in the funeral contract may be in the form:
- A single contribution: a single payment.
- A contribution in periodic premiums: monthly, quarterly or annual payments, over a period defined in advance.
- A contribution in life premiums: payments throughout life. This mode of financing is not recommended. Indeed, the amount paid may ultimately be greater than the capital guaranteed in the contract. This is why some brands do not offer payment in life.
In the case of a subscription to a funeral insurance contract, it is recommended to contact your funeral agency ROC ECLERC in particular. The quality of their funeral contracts has been rewarded with the Excellence label: this is the highest distinction awarded by the experts at Dossiers de l’Épargne. The advisors will be able to provide all the useful and necessary information for your process. They deliver, moreover, the best accompaniment. They establish, on simple request, a free and non-binding estimate of funeral services, detailed, clear and transparent on the prices.