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How to Pay for a Funeral [2021 Guide]

5 December 2020 No Comment

Are you needing to pay for a funeral?

If you’ve recently lost your loved one, we offer our sincerest condolences. Losing someone you love is never easy, especially when compounding funeral costs become difficult to pay. Many families want to be able to honor their relative but don’t know how to do so without breaking their budget.

That’s why we’re writing this article. Even though funerals can be expensive, there are still ways to pay for them that enable you to honor the life of your friend or family member.

Keep on reading to learn more.

Life Insurance Plans

One of the most straightforward ways to cover the cost of a funeral consists of using money gained from a life insurance policy. With life insurance policies, the insured person makes premium payments that then guarantee their listed beneficiaries will get money after they pass away.

Many families use this cash to help cover funeral expenses. Check to see whether or not your loved one had a life insurance policy as you begin to plan the funeral.

Click on the link in this sentence if you need help choosing life insurance policy offers that work for you.

Prepaid Funeral Plans

Sometimes, people can pay for a funeral upfront. These are known prepaid funeral plans or preneed plans helping people pay for their ceremonies before they die.

These plans include 4 different types of policies: whole-life plans, revocable trust, burial insurance, and irrevocable trust.

Whole-life plans function much like life insurance policies. The person pays a premium, and upon their death, their beneficiaries receive a payout.

In a revocable trust, the person signs a contract to pay for their funeral in installments. The money then goes into an account that accumulates interest. The trust can be changed over time.

Irrevocable trusts, on the other hand, cannot be changed, unless the person changing it is the beneficiary. Otherwise, it functions in the same way as a revocable trust.

Burial insurance consists of a policy that covers the expenses related to burying someone.

Using Crowdfunding Platforms to Pay for a Funeral

The internet has given people in need of money a fantastic opportunity. Through crowdfunding websites such as GoFundMe, people give others the opportunity to donate money to different causes.

Many people use these platforms to help pay for the funeral. To do this, simply make an account on these platforms, choose a picture of the person, share their story, and write what the money will go toward. Then, share the page with your friends and family on social media.

This is a great tactic, especially because it gives everyone the chance to show their appreciation for your loved one, even if they can’t make the funeral service. It also serves as a huge relief to the family having trouble paying for a funeral and reassures them that they aren’t alone in their grief.

Want More Advice?

If you need to pay for a funeral, you’re probably wondering where to begin.

Fortunately, there are several options available to you. Whether you want to use a life insurance policy, a prepaid funeral plan, or a crowdfunding platform, there are many resources available that allow you to find the best way to pay for a funeral.

Want more financial advice? Check out the rest of the articles on this website!

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