Funeral Insurance in Canada

Funeral insurance is a type of life insurance policy that is designed to help protect your loved ones from the financial burden of your end-of-life expenses. It is known by other names as burial insurance, pre-need insurance or final expense insurance This includes funeral costs, any outstanding debts or mortgages and even taxes that may need to be paid off. With a funeral insurance policy, you can provide your family with the financial resources needed to cover funeral expenses, relieving them of the burden and stress associated with finding the necessary funds to pay for them.

In addition to the expenses associated with your passing, funeral insurance can also provide small cash gifts for beneficiaries upon your death. It is an affordable option that can provide peace of mind for both you and your loved ones, knowing that they will not have to worry about financial hardships during a difficult time.

Funeral insurance policies in Canada provide tax-free funds to help your family members during a difficult time. By purchasing a plan, you can ease the financial burden and stress on your loved ones. The policies are available to everyone and don't require a medical exam, making them accessible even for those with pre-existing conditions. Premiums are payable monthly, making it possible to pay them on a fixed income(Retired | Pensioner). Funeral insurance is designed to avoid leaving your family with a heavy financial burden.

Term or Whole Life

Term funeral insurance is an inexpensive option but has limited time for which a benefit will be paid and for which the premium payment will remain unchanged. The premiums for whole life funeral insurance are typically higher due to the fact that the policy provides a benefit that does not expire after a certain time frame. However, it is important to note that this type of policy does not offer protection against the potential increase in funeral costs over time.

Medically Underwritten or Guaranteed Issue

Medically underwritten policy offers a higher maximum benefit and requires a detailed medical history. Guaranteed issue policy is for those with high-risk health problems but not a terminal illness. It is more expensive than a medically underwritten policy, and offers lower maximum coverage amounts, but it's an option.

Guaranteed or Non Guaranteed Expense Lock

Guaranteed expense lock policy type locks in prices for funeral goods and services selected in advance. Upon completion of payment for the policy, there are no unexpected surprises or additional charges or expenses. Non Guaranteed expense lock policy type does not lock in prices for goods and services, and if costs increase and become greater than the policy's death benefit, your family will need to pay the difference.

Coverage for Funeral Expenses

Funeral expense insurance is specifically designed to cover the costs associated with a funeral, including funeral home services, cremation or burial expenses, casket or urn costs, transportation and other related expenses. The product highlight here is the focused coverage on funeral-related costs.

Customizable Coverage Amount

Funeral expense insurance allows you to choose the coverage amount based on your specific needs and preferences. This provides flexibility in selecting a coverage level that aligns with your expected funeral expenses. The product highlight is the ability to tailor the coverage amount to suit individual requirements.

Quick Payout

Funeral expense insurance policies typically offer a quick payout to beneficiaries upon the insured's passing. This ensures that funds are readily available to cover immediate funeral expenses, providing financial relief during a challenging time. The product highlight is the timely disbursement of funds for funeral expenses.

Simplified Application Process

Funeral expense insurance often features a simplified application process that requires minimal documentation and may not involve a detailed medical examination or extensive health-related questions. This streamlines the application and approval process, making it accessible to a broader range of individuals. The product highlight is the ease and simplicity of applying for coverage.

Flexible Premium Payment Options

Funeral expense insurance policies offer flexibility in premium payment options. You can choose to pay premiums on a monthly, quarterly, semi-annual, or annual basis, depending on your preference and budget. The product highlight is the ability to select a premium payment frequency that suits your financial circumstances.

Portability and Coverage Continuity

Some funeral expense insurance policies may offer portability, allowing you to maintain coverage even if you move or change your residence within Canada. This ensures that your coverage remains in effect regardless of your location. The product highlight is the ability to carry the coverage with you, offering peace of mind.

It's important to review and compare different funeral expense insurance policies to find the one that best aligns with your specific needs, budget and desired product highlights.

Overall, funeral expense insurance provides a valuable safety net for your loved ones in the event of your passing away. It offers financial protection and tranquillity and can be an accessible option for those with health concerns or limited financial resources.

Simplified Issue Life Insurance in Canada

If you're at a moderate health risk but have trouble obtaining regular insurance coverage, simplified issue life insurance may be a viable option in Canada. You won't have to undergo a medical exam, but you will have to answer some basic health questions and provide some health-related information. On simplified issue applications, you may encounter questions about HIV and nursing home residency. These policies will go through some underwriting, but they are typically less expensive than guaranteed issue funeral policies.

Guaranteed Issue Life Insurance in Canada

Guaranteed issue life insurance in Canada is a policy that is guaranteed to be accepted, as the name implies. As long as you are younger than a certain age, you cannot be turned down. You are not required to undergo a medical exam or disclose any health-related information. If you have a serious medical condition that would result in too high of a rating or a policy denial for standard or simplified issue life insurance, guaranteed issue life insurance is your best option. Although your acceptance is guaranteed, the payment is frequently lower than with simplified issue life insurance, and the premiums may still be higher than with a standard policy.

Funeral insurance policy covers all final costs associated with your funeral. In Canada, funeral expenses typically range between $5,000 and $15,000. Different factors can influence the price of final preparations, such as :

Funeral Procession
Cremation
Urns
Headstones
Caskets
Professional services fee
Burial

There are other factors which affect the funeral insurance policies and may vary depending on the policy type and provider. They are Embalming and other preparation of the body, visitation or wake, graveside service, transportation of the body, floral arrangements, obituary notices, death certificates and other paperwork, religious or cultural customs or requirements, catering or reception services for mourners, travel and accommodation expenses for out-of-town guests attending the funeral. Do contact us to know better the terms and conditions of any policy you are considering so that we will help you to understand what expenses will be covered and this also applies to any potential limitations or exclusions that may be relevant.

Funeral insurance premiums are influenced by several factors such as :

Age
Policy type
Coverage amount
Smoking history

The existence of medical underwriting also affects the cost of the policy. Simplified issue or guaranteed issue insurance is generally more expensive than regular policies, but simplified issue life insurance is cheaper than guaranteed issue life insurance. Moreover, the cost of funeral insurance coverage increases with age, which means seniors pay more for funeral insurance in Canada than younger customers.