Why Memorial Society Membership is Better Than Traditional Funeral Insurance
Many of us want to give our loved ones peace of mind after we're gone, which often means protecting them from having to pay costs associated with our passing, such as funeral fees, burial costs, lawyers, and more. One of the primary reasons for end-of-life financial planning is managing costs before and after you pass. That's where funeral planning and funeral insurance can help.
However, the Cooperative Memorial Society (CMS) membership offers distinct advantages over traditional funeral insurance.
However, the Cooperative Memorial Society (CMS) membership offers distinct advantages over traditional funeral insurance.
What is Funeral Insurance
Funeral insurance, also called burial insurance, final expense insurance, or end-of-life insurance, is a type of permanent life insurance product. In a traditional permanent life insurance policy, your family would receive an income replacement when you pass away, which they can use as they wish. With funeral insurance, your family or the beneficiary of your insurance gets a lump sum payment specifically to cover your end-of-life expenses such as funeral services and burial costs.
Life Insurance vs. Funeral InsurancE
Both life insurance and funeral insurance offer a death benefit, but they serve different purposes:
- Purpose: Funeral insurance is designed specifically to cover funeral expenses, while life insurance provides comprehensive coverage for various financial needs, including funeral expenses, income replacement, debt payoff, and more.
- Premiums: Funeral insurance premiums are typically lower because they cover smaller benefit amounts designed for funeral and burial expenses. Life insurance premiums vary widely based on several factors, including the type of policy, coverage amount, age, health, and lifestyle.
- Duration: Funeral insurance typically provides coverage for the policyholder's lifetime. Life insurance can also offer lifetime coverage as long as premiums are paid.
- Flexibility: Funeral insurance focuses on covering funeral-related expenses, while life insurance provides broader flexibility for beneficiaries to use the death benefit for different purposes.
- Payouts: Funeral insurance offers quick processing of claims to provide financial assistance for funeral expenses. Life insurance provides a lump sum payment to beneficiaries for various financial needs.
The Advantages of CMS MembershiP
While funeral insurance offers a way to cover end-of-life expenses, CMS membership provides several benefits that make it a superior choice:
Cost-Effective Planning:
Cost-Effective Planning:
- CMS membership often includes negotiated rates with funeral service providers, resulting in lower overall costs for funeral and burial services. This can be more affordable than paying for funeral insurance premiums over many years.
- CMS membership provides guidance and support for funeral planning, helping members navigate the process and make informed decisions. This includes assistance with creating detailed funeral plans that reflect individual preferences and values.
- By joining CMS, you ensure that your funeral arrangements are pre-planned and documented, relieving your loved ones from making difficult decisions during a time of grief. This can provide greater peace of mind than relying solely on funeral insurance.
- CMS membership guarantees immediate access to funeral services when needed. Funeral insurance payouts may take time to process, but CMS members can be assured that their arrangements will be handled promptly and efficiently.
- CMS membership eliminates the potential legal complexities and delays associated with insurance claims. Funeral plans are executed as per the member's wishes without the need for lengthy legal processes.
Average Funeral Costs in Canada
Funeral costs in Canada can vary widely depending on location and services chosen. On the lower end, costs can be around $1,500, while on the higher end, they can exceed $75,000. Factors influencing these costs include caskets, embalming, funeral and reception services, burial or cremation, urns or headstones, and the complexity of the arrangements.
The Most Expensive Part of a FuneraL
The most expensive part of a traditional funeral is often the fee for funeral home services. If a paid service is not planned, the most costly aspects may be the casket or the burial plot, especially in urban areas where land is limited and expensive.
Who is Legally Responsible for Funeral Costs in Canada?
The personal representative of a person's estate is responsible for covering funeral and burial costs using assets from the estate. Insurance payouts from funeral insurance can also cover these costs, regardless of whether the deceased had a will.
Government Assistance with Funeral Cost
The Canadian government can help cover funeral costs through the Canada Pension Plan (CPP) death benefit, a one-time payment of $2,500, provided the deceased contributed to the CPP for at least three years. The executor must apply for this benefit within 60 days of the deceased's death.
Choosing the Right Funeral Insurance Policy
When considering funeral insurance, it's important to evaluate coverage limits, policy types, exclusions, limitations, and the underwriting process. Factors such as age, policy type, coverage amount, smoker status, and medical underwriting can affect the cost of premiums.
Repatriation Insurance is a good Idea for CMS Members who TraveL
Repatriation insurance is a smart addition to the end-of-life planning toolkit for CMS members. It offers peace of mind, financial protection, and ensures that your final wishes can be carried out without placing additional burdens on your loved ones. By considering repatriation insurance as part of your overall funeral plan, you can ensure a smoother, more secure process for bringing your remains home, no matter where you may be when you pass away. Learn more about repatriation insurance.
Conclusion
While funeral insurance can help cover end-of-life expenses, CMS membership offers a more comprehensive, cost-effective, and supportive approach to funeral planning. By joining CMS, you ensure that your wishes are documented, your loved ones are supported, and your funeral arrangements are handled efficiently and affordably. This provides greater peace of mind and financial security for you and your family.