There is a conception of death insurance as something classic, old-fashioned. Nothing could be further from the truth. Industry data tells us that this insurance is increasing by an average of 5% per year. In fact, more than 50% of the people who take out the policy are under 40 years of age.
Why take out a death insurance policy?
The main reasons for doing so are twofold:
- That the family does not have to bear such a high expense as the funeral service. Even more so if it occurs outside our town or even abroad. Thanks to this policy, we pay in small monthly periodic amounts.
- That our relatives see the effort involved in paperwork, bureaucracy and other procedures to be carried out in such difficult times reduced.
Funeral insurance is a type of insurance known as “benefit” or “service” insurance. This service is provided by the funeral home, but the company assumes the cost of the service.
What services and guarantees are included in the funeral insurance?
We should value and distinguish the coverages for the last service of the policy, as well as the guarantees that are enjoyed in life.
Regarding the first ones, a normal coverage of the same includes: the coffin, hearse, religious service, wreaths of flowers, headstone, obituary, option of cremation of the deceased, urn, and the processing of the necessary documents. The latter is very important, since at such moments paperwork is nothing more than a terrible burden.
The guarantees enjoyed during life are very varied:
- 24-hour medical assistance by telephone,
- dental insurance supplements
- travel assistance abroad
Each company offers different alternatives, not all of them have the same additional guarantees.
From our insurance brokerage, we advise against the contracting of death insurance policies only for life services. We believe that there has been a denaturalization of this policy, adding unnecessary guarantees in many cases. Sometimes, these have nothing to do with what is intended of this policy, leading this insurance to be more expensive than it should be.
Interesting facts about funeral insurance
These are statistics obtained from Unespa‘s Memoria social del seguro, which justify the purchase of funeral insurance:
- Of the more than 400,000 deaths in Spain on average per year, more than 60% are covered by insurance.
- More than 30% of these deaths required the transfer of the corpse (which increases the cost of the service tremendously).
- 715 persons who died abroad and whose bodies were repatriated (2016 data).
- 20.9 million people out of the 46.5 million residents in the country are protected by one of these policies (according to data collected by ICEA). That is, 45% of the population.
In recent years, the premiums paid for these insurances have dropped significantly. Many old policies have been priced completely out of the market. That is why you want to know what is the best death insurance and companies like DKV, Adeslas or even Preventiva, with their new rates, are gaining ground. But, be careful with the rate we hire, that it does not lead us to error, and when we have 70-80 years we can not afford the fee. In this article we clarify the types of death insurance that are marketed.
Come to PIB Group Iberia and ask us how to avoid overpaying, choosing the funeral insurance rate that best suits your needs.
