A funeral is not only an emotional farewell, but also involves considerable costs. In order to reduce the financial burdens on survivors and make self-determined provisions, funeral preneed is a good idea. In this article, we look at the various options for financial security and show the advantages of early planning.
Funeral costs
Die Funeral costs can quickly amount to several thousand euros. Key cost factors include:
- Type of burial (burial, fire burial, sea burial)
- coffin or urn
- Transfer and care of the deceased
- Cemetery fees and grave maintenance
- Funeral service and burial
- Tombstone or memorial plate
Depending on individual wishes and regional conditions, the total costs can vary significantly. Dealing with the expected costs at an early stage helps to reduce the financial burden on survivors.
Financial preneed options
There are various ways to financially secure the costs of a funeral. The most common variants are:
1. Death benefit insurance
Death benefit insurance is a special life insurance policy that pays out the agreed sum insured to survivors in the event of death. The amount of insurance can be selected individually and depends on the expected funeral costs. The advantage of death benefit insurance is that the payment is quick and unbureaucratic and the survivors can freely decide how to use the money.
2. Escrow account
With an escrow account, the pension provider deposits a fixed amount into a special account that is managed by a trustee. In the event of death, the saved money is then used for funeral expenses. The advantage of this variant is that the funds are protected against insolvency and are used for a specific purpose for the funeral.
3. Funeral pension contract
A funeral benefits agreement is an agreement with a funeral home in which the desired services are defined and paid for in advance. The advantage is that the funeral costs are covered during their lifetime and the survivors are financially relieved in the event of bereavement. In addition, individual wishes can be taken into account and contractually fixed.
4. Savings account or savings account
A simple way to make financial provision is to save a certain amount in a savings account or savings account. It is important that survivors have access to the money in the event of death in order to be able to pay funeral costs. The disadvantage of this variant is that the savings may be used up in the event of care and will then no longer be available for burial.
Benefits of funeral planning
Early funeral planning offers many benefits for the pension provider himself and his relatives:
- Financial relief for survivors in the event of bereavement
- Protection of funeral costs regardless of price developments
- Possibility to personalize the funeral according to your own wishes
- Relief of organizational tasks for relatives in the event of bereavement
- Assurance that your last wishes are respected
- Avoiding disputes among survivors regarding funeral arrangements
Funeral preneed is therefore not only a financial but also an emotional relief for survivors in a difficult time.
conclusion
The costs of a funeral can quickly become a financial burden for survivors. Early funeral preneed provides a remedy here and offers various options for covering costs and planning independently. Whether death benefit insurance, escrow account or funeral pension contract — each variant has its advantages and can be individually adapted to personal needs. Consulting can help you find the right solution and optimally implement your own wishes. In this way, you can go into the future with peace of mind and know that your loved ones will be financially and emotionally relieved in the event of bereavement.
We would be happy to advise you on your options free of charge. You can find more information here.