|Posted on 22 May, 2017 at 9:55|
Funeral Insurance is ideal for anyone who knows there will not be quick and easy access to funds of maybe $7500-$15000 to cover the costs of a funeral. This could be funds from yourself, a surviving spouse or dependants.
In many cases people do have assets such as a house but this in itself will not mean easy and quick access to funds is available. If there is a surviving partner you cannot rely on proceeds of a house sale or taking a loan against the house. If the person who has passed does not have a partner. and owns a house, then it is true that some funds may be available in due course. However, that would rely on the house sale process and it might mean the sale proceeds may not be available for a considerable time. A funeral would need to be paid almost immediately in most cases.
So, waiting on money from a house sale is unlikely to assist in the prompt payment of any funeral expenses. A funeral insurance plan mght be sensible even if funds may be otherwise available eventually.
There is also the situaton where the person who passes away may have money but it may not be available to others to access. It may take some time for it to be available if there are issues with a will etc. Other than funeral insurance being in place someone wtth funds can look to open up a bank account for the specific purpose of covering funeral costs but they must make sure the account is a joint one with the other person having full access to withdraw funds with their authorisation only. This is very rare that this occurs, mainly as it is hard to plan in advance.