Funeral insurance covers the costs associated with a cremation or burial, such as the work of the undertaker, the coffin, the printing of obituaries, catering and the car driving the funeral procession. By taking out funeral insurance, relatives are not charged for the costs that are associated with a funeral. The average cost of a funeral is between €6,000 and €10,000. In addition, taking out funeral insurance takes some of the organisational work off your hands. For a small amount per month, you can already buy good funeral insurance.
Funeral insurance applies to almost everyone: babies, young children, adolescents, adults and the elderly (usually up to the age of 70):
There are different forms of funeral insurance. Some policies pay out a sum of money at the time of death, while others provide cover in kind, where many services are provided after the death of the insured person. With some funeral insurers, it is also possible to arrange and insure the desired funeral in advance in detail.
With natura insurance, the goods and services associated with the funeral are covered by the insurance company. Usually, the insurance covers the most important elements of the funeral (the so-called basic package), but extended options can also be insured. Such items are often agreed in advance so that the next of kin will not face unexpected costs later.
With capital funeral insurance, the nearest family receive a set amount of money to cover funeral costs. However, this is not an obligation. The family has complete freedom to decide what to spend the insured amount on. It does not necessarily have to be a funeral, but it can also be a charity.
Funeral amount insurance, often also referred to as contribution insurance, is similar to capital funeral insurance. The difference is that the amount insured can only be spent on the funeral. In addition, after death, the nearest family is free to choose the undertaker and the services that are/are not provided and paid for by the policy.
With combined insurance, part of the costs are paid (Natura insurance) and part in the form of a amount of money (capital). Often, standard services are covered under the Natura part and other items, such as additional catering, a more luxurious coffin or more flowers, can be paid for with the money paid from the capital part.
There are a number of options available within funeral insurance. Roughly speaking, they can be divided into capital and natura insurance. If you prefer a funeral abroad, it is sensible to take out capital insurance. This is because the nearest family are free to spend the amount of compensation. If you die at home and have a funeral abroad, the transport costs will of course be higher than usual.
With Natura insurance, it is less easy to be reimbursed for all (transport) costs. This is because some services or products are reimbursed in advance.
As mentioned above, you can purchase funeral insurance for a small amount per month. Include funeral insurance in your considerations in case you want to be buried in your country of origin, for example. Do you need help or advice? If so, get in touch with us!
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