There is a conception of death insurance as something classic, old-fashioned. Nothing could be further from the truth. Data from the sector tell 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 funeral insurance?
The main reasons for doing so are twofold:
- What the family does not have to bear the high cost of the funeral service. It is even more so if it occurs outside our locality or even abroad. Thanks to this policy, we pay for it in small monthly instalments.
- What our family members see the effort reduced The paperwork, bureaucracy and other formalities to be carried out in such difficult times.
Funeral insurance is a type of insurance that is known as “service insurance” or “service insurance”.”. This service is provided by the funeral parlour, but the company bears the cost of this service.
What services and guarantees does funeral insurance include?
We should value and distinguish the coverage for the ultimate service of the policy, as well as the guarantees enjoyed during life.
With regard to the former, a normal coverage includes: the coffin, hearse, hearse, religious service, wreaths, headstone, obituary, cremation option of the deceased, urn, and the processing of the necessary documents. The latter is very important, as at such times paperwork is 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.
At our insurance brokerage, we advise against taking out death insurance policies solely for life services. We believe that there has been a distortion of this policy, adding unnecessary guarantees in many cases. Sometimes, these have nothing to do with what the policy is intended for, making this insurance more expensive than it should be.
Interesting facts about funeral insurance
These are statistics obtained from the Social Report of the Social Insurance of Unespa, and which justify taking out funeral insurance:
- Of the more than 400,000 deaths in Spain on average per year, more of the 60% are covered by insurance.
- More from the 30% of those deaths, required the relocation of the corpse (which raises the cost of the service tremendously).
- 715 people who died in the foreigner and whose bodies were repatriated (data from 2016)
- 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). This is 45% of the population.
In recent years, the premiums paid for these insurances have fallen significantly. Many older policies have been priced completely out of the market. That's why you want to know what is the best funeral insurance. But, be careful with the tariff we contract, so that it does not lead us to error, and when we are 70-80 years old we cannot afford the quota. In this article we clarify the types of funeral insurance that are traded.
Come to PIB Group Iberia and ask us how to avoid overpaying by choosing the funeral insurance rate that best suits your needs.
