{"id":380,"date":"2023-11-27T13:52:41","date_gmt":"2023-11-27T13:52:41","guid":{"rendered":"https:\/\/policyarchitects.com\/CN\/can-life-insurance-cover-funeral-costs-yes-and-heres-how\/"},"modified":"2024-07-08T20:54:41","modified_gmt":"2024-07-08T20:54:41","slug":"can-life-insurance-cover-funeral-costs","status":"publish","type":"post","link":"https:\/\/policyarchitects.com\/CN\/can-life-insurance-cover-funeral-costs\/","title":{"rendered":"Can Life Insurance Cover Funeral Costs? Yes, and Here\u2019s How!"},"content":{"rendered":"

Can Life Insurance Cover Funeral Costs? Yes, it can, and it’s a terrific tool.<\/strong><\/p>\n

When people think about life insurance, term coverage <\/a>usually comes to mind. This coverage provides income protection for periods when a family is most vulnerable.<\/p>\n

If you have dependents and debt, term life insurance is a no-brainer.<\/b><\/p>\n

But what about later in life? If you had term coverage and it expired, you would not have a payout to rely on to cover funeral costs and\/or the final tax bill.<\/em><\/p>\n

So, who is going to be financially responsible? Your family is, that’s who.<\/p>\n

This is where life insurance for funeral expenses comes in handy. Let’s find out more information now!<\/p>\n

Policy Architects Exists to Help Make Your Life Insurance-Buying Decisions Easy!<\/h1>\n

Before we get into the meat of this article, I want to introduce myself. My name is James Heidebrecht. I am the founder of Policy Architects,\u00a0where you’ll find the best collection of life insurance reviews and articles anywhere on the internet.<\/p>\n

We rigorously vet and review insurance companies, products, and strategies in detail so you can make a confident buying decision.<\/p>\n

When I first embarked on my search for life insurance, very little user-friendly information was available. <\/em>This site is dedicated to helping you make smarter decisions about\u00a0purchasing life insurance products.<\/strong><\/p>\n

Now Back to Business: Can Life Insurance Cover Funeral Costs?<\/h2>\n

If you are wondering if life insurance policies cover funeral costs, you are far ahead of the pack. <\/strong>Most people don’t think about death until it’s pretty late in the game, and even fewer look at the available tools. So congratulations. You are thinking about those you love and planning for future generations.<\/p>\n

Did you know that funerals are very expensive<\/a>? Yeah, they sure are. In Canada, the government, through the Canadian Pension Plan (not to be confused with CPP insurance), offers a $2,500 benefit\u00a0to help with costs.<\/p>\n

There are two issues with this. First and foremost, the average funeral in Canada today is $8500 and can even go up to $15,000. Ouch.<\/strong><\/p>\n

What About Cremation Costs? I Heard They are Cheaper<\/strong><\/h3>\n

The average cremation cost in Canada today ranges from $3,000 to $5,000. However, a basic cremation can cost as little as $2,000 or less. Keep in mind that most of us aren’t dying today. So, if you think about 10, 20, or 25 years from now, you can see how the costs could increase.<\/p>\n

…and neither of these options includes outstanding tax obligations, etc., connected with passing away.<\/p>\n

The second issue is the speed of receiving the benefit. This cash will not arrive right away. Where will the money come from when the funeral provider seeks payment?<\/strong><\/p>\n

\"funeral<\/p>\n

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“How much is it going to cost?” This is, undoubtedly, one of the questions we are most often asked. Unfortunately, there is no simple answer, as funeral costs vary greatly. We did a Google search on the \u201caverage cost of a funeral in Canada\u201d; headlines from the first page of search results included the following:<\/p>\n