Why the need of Funeral/ Burial Insurance?
People are prepaying and preplanning their final arrangements much ahead because of the following reasons- • Increase in Funeral Expenses- The NFDA(National Funeral Directors Association) states that since the last thirty years the interests of the consumers in funeral preplanning is gradually growing. The recent trend is to prefund these rites. The AARP (American Association of Retired Persons) says that the funeral outlays have really gone up these days. The average expenditure for an adult funeral varies from $4,500 to $5,500. About one-third of $10,000 is spent solely on the coffin and $2,400 is used for under-ground entombment. Hence the largest number of burial insurance polices are bought by the elderly Americans. • Less Reliance in Trusts- In the past, a certain sum of money was set aside in the form of trusts for meeting funeral expenses. However people couldn?t rely much on these trusts as tax liabilities were involved. Hence the burial insurance policies became much popular.
