Let’s face it, talking about final expense insurance is not a fun topic but it is one that is important as folks get up in age. As a blogger in the financial niche this is a topic that I discuss often and want to explain further in this article.

Funeral insurance has become a major moneymaker for companies that will guarantee a preset price for burials and are intended to protect the consumer from price hikes and inflation. Funeral homes and insurance companies have both entered into this arena recently. If you are looking into these types of insurance you will have to choose between the two.

Funeral Parlors will look to get you in for a funeral plan at a set cost, in a set location or cemetery. This lessons the burden on those the deceased leaves behind. I often warn people to make sure that this is movable as not everyone will continue to reside in the same location forever. Another thing to consider is what happens in the funeral parlor shuts down or gets sold.

Insurance companies try to remedy these problems by offering solutions. One solution is to buy a regular insurance policy that lets your family plan your funeral anywhere.

Another option I recommend is a funeral trust. In this scenario money is put into a trust and when the person dies the funeral home gets paid out and then the rest of the money goes back to the estate.

Whatever choice you make it is important to do your research and consult a professional if you have any questions.