More and more of us take out life insurance that guarantees the tranquility of our loved ones in case the day comes when we miss them. Life insurance and burial insurance, both cover the death of the insured , they seem the same but they are not.
Both life and death insurance cover the same type of risk, the loss of life and its activation involves an economic benefit in the following lines, which are not common to both:
These policies guarantee services related to the death of a person, such as funeral, funeral, administrative expenses and even assistance in travel, repatriation or accidents.
These policies grant a single economic amount or in several rents to the beneficiary when the death of the policyholder occurs. Said compensation will be that established by the insured at the time of signing his policy.
Main differences between life and burial/death insurance
Main insurance coverage
As we have mentioned, final expense insurance covers the services, procedures and expenses related to the death of the policyholder. Its main objective is to ensure the tranquility of your relatives at the time of your absence, since all the expenses generated will be covered at this delicate moment for them.
As for life insurance , it is not responsible for covering death management services but rather provides financial peace of mind to your loved ones , with the amount established by the insured. By receiving said compensation you can ensure coverage of the payment of mortgages, debts or savings for the future.
Life insurance may have additional coverage that can cover the insured’s disability in the event of an accident or illness , to face the difficulties that this entails. These whole life insurance coverages are not covered by the funeral insurance.
Also, in the case of life insurance, the insured could request an additional guarantee that allows the beneficiary to request an advance of the amount to cover inheritance taxes or death expenses.