Whether it’s a death or a funeral, it speaks to the same purpose, the death of a close relative and his burial. However, in terms of insurance, these two concepts are entirely different and even talk about the two types of contracts to which the achievements have nothing in common. What are the differences between life insurance and funeral insurance ? The answers here, in a few words.
Death insurance and its characteristics
This type of insurance is part of the category insurance. This is a fee that the challenge is to offer a certain sum of money to designated persons when the death of the insured occurs. The death is irrevocable and, therefore, expected, the death insurance is different from life insurance. Actually, this last is a support in case of accidents health various.
When the contract for life insurance, the person concerned defines the specific age at which he thinks to succumb to death. Two cases may occur.
- In a first case, if the death occurs prior to this date seen as a deadline, the capital, the fruit of his contributions in his lifetime, may be paid out to the beneficiaries that it has identified in its contract. It may be a spouse, children or any other person having a relationship or not with the subscriber.
- In a second case, if the insured is still alive once the deadline has passed, all the money which he has paid contributions shall be neither made nor paid on the account of the beneficiaries.
According to the agencies, several parameters are taken into account during the preparation of the contract, including the insured’s age, state of health, and any disease risks that it may incur.
The areas of intervention of this insurance also differ according to the insurance companies. In some subscriptions, the event of death by accident because of the practice of a dangerous sport is not part of the courts of the insurance while others will take effect in the event of a loss of autonomy. In all cases, this insurance takes the form of a temporary pension or a life pension, that is to say, which shall take effect until the death of the beneficiary.
Unlike life insurance, which is an annuity paid to a beneficiary after the death of the subscriber, funeral insurance, as its name suggests, is only established to take charge of the funeral of the deceased. In fact, the latter has contributed to his living in order to put at the disposal of his relatives a certain amount of money to cover the costs of the funeral. The assessment may have been conducted over a long period of time, so that life or property in the form of a single deposit.
This type of insurance is available in two different formulas :
- The first is a contract in which the deceased sets out a detailed estimate of what will be at his funeral making use of an operator of a funeral director, and precise. The latter undertakes to carry out to the letter the wishes of the subscriber
- The second form consists in putting at the disposal of a recipient an amount pre-determined. In this second option, the deceased may make arrangements
Throughout his life, the subscriber can make any changes he desires in the elements that make up his last wishes. It can also migrate from one insurer to another, the last appointed being the one that will support the achievement of its funeral. In all cases, it is important for the insured to inform them of the presence of penalties in the event that his or her wishes were not followed.