Why funeral insurance often makes little sense for older people: Financial expert provides information about alternatives

Why funeral insurance often makes little sense for older people: Financial expert provides information about alternatives

According to a report by www.ak-kurier.de,

Funeral insurance can be important protection for the surviving relatives at a funeral, as the costs can quickly reach 3,000 to 5,000 euros. However, this insurance often makes little sense for older people due to the high premiums. The consumer advice center therefore recommends alternatives such as savings plans, contracts with an undertaker or a funeral provision contract.

Funeral insurance is a form of endowment life insurance that offers an insured sum of between 4,000 and 10,000 euros. Although the monthly premiums are low, the payouts are not very high either. In addition, contributions increase with age, as the risk of mortality also increases. The consumer advice center therefore recommends finding out about the exact costs of a funeral and examining alternatives.

As an alternative to a death benefit policy, the consumer advice center recommends saving a certain amount each month or taking out a funeral provision contract with a funeral home. In some federal states there is also a death benefit for federal civil servants. In the case of those in need, the social welfare office can also cover the funeral costs if those obligated cannot cover them.

Regardless of the funeral arrangements you choose, it is important to record your last wishes in writing and make them accessible to your relatives. The consumer advice center offers telephone advice on Mondays and Wednesdays and a guide on the topic “What to do if someone dies?”

Conclusion: Funeral insurance can be financially burdensome, especially for older people. It is worth examining alternatives such as savings plans, funeral provision contracts or receiving death benefits from civil servants in order to ensure financial security in the event of death.