Whats the difference between a standard life insurance policy and preneed funeral insurance; aren they basically the same thing?
A. Traditional life insurance is intended to provide for a broad range of your survivors’ future financial needs provide income, cover education costs, pay off a mortgage, and the like. Preneed funeral insurance, on the other hand, is specifically intended to cover only the predetermined costs of a pre-arranged funeral contract. In addition, there are several other important differences between the two types of coverage. For example: With regard to benefit distribution at the time of death, preneed funeral insurance is payable immediately to the beneficiary (generally the funeral home) upon the policyholder’s death; traditional life insurance policy benefit distributions may require several weeks to be paid by the insurance company.
