What’s the difference between Funeral Insurance and pre-paid funeral plans?
You pay a series of regular premiums to cover an amount of your choosing. Either that amount or the total of the premiums you have paid throughout your policy will be paid out at claim time (whichever is greater). This money, provided to your nominated beneficiary, is then used to pay for your funeral and other related expenses.
With pre-paid funeral plans, however, you plan and pay for your funeral in advance, meaning there's no additional funeral costs to pay for after your death. Costs are fixed, so you know you won't have to worry about the rising cost of funerals in the future. However, sometimes pre-paid plans can be difficult to amend if you need to, like, for example, if you've moved to a different state to be with your family.