Funeral insurance: several forms of contract
There are two very distinct types of funeral contracts that it is important to differentiate.
Capital funeral contract: pay the funeral costs
Capital contracts (or ” financing contracts ”) offer the possibility of providing a capital that will be used to finance his funeral.
As their name suggests, they are limited to guaranteeing, upon the death of the subscriber, the payment of the guaranteed capital (on average between € 3,500 and € 5,500) to the designated beneficiary and do not intervene at any time in the organization of the funeral. .
Representing around 75% of subscriptions according to the FFSA, these contracts before 2013 had a major drawback: nothing in its clauses required the beneficiary to use the capital for the funeral costs of the insured. The person designated as beneficiary could therefore use the amount contributed as he saw fit. Thanks to the Sweat law, this concern is now resolved.
Funeral contract with personalized services: pay and organize your funeral
Also called funeral convention, these contracts offer the possibility, in addition to financing the funeral, to manage the organization.
Two contracts in one:
- An insurance contract managed by an insurance company dedicated to financing;
- As well as a service contract managed by a funeral operator who will be responsible for organizing the funeral.
Thanks to this type of contract, the insured can choose very precisely the services desired during his funeral. With his funeral advisor, the subscriber decides on the desired options and obtains a personalized estimate specifying the amount of capital to be guaranteed. He can then choose to sign the quote or not.
The entourage and then thus relieved of the cost of the funeral but also of their organization. They will only have the choice of decoration, possible readings and songs (if the insured has not already mentioned this in the contract).
Choosing the right funeral insurance from the large amount on offer is not always easy. Sites specializing in the sector such as www.lassurance-obseques.fr guide you in your choice and allow you to compare the prices and services of the different contracts.
Funeral agreements: what types of services?
Generally, the services are more or less the same according to the different funeral operators (non-exhaustive list):
- Choice of coffin type (price, type, engravings, moldings, etc.);
- Choice between burial or cremation;
- The type of ceremony (religious or secular) and its unfolding;
- Possibility of opting for family support (psychologist, housekeeper, etc.);
- Whether or not to take a concession;
- Designate carriers (how many, outfit …)
- The type of flowers at the funeral;
- Opt for a personalized tombstone;
- Repatriation to the deceased’s home;
- Designate a master of ceremonies etc.
The insured can therefore choose all the options relating to his funeral, being sure that they will be followed to the letter.
Even if these services are not really essential, several of them can considerably help those around you during this painful ordeal:
- the cost of travel for relatives instead of the funeral,
- psychological assistance to cope with bereavement,
- or administrative and legal assistance guiding all the steps to follow.
At what age is it most interesting to subscribe?
Contrary to what one might imagine, it is not necessary to wait until “old age” to take out funeral insurance. It is also preferable to think about it early (around 50, 55) to benefit from lower contributions.
Also, by opting for temporary contributions (generally spread over 5.10 or 15 years), the insured can then contribute during his working life and thus be completely freed from his monthly payments during his retirement.
Note that as a general rule, the subscription age limit is 80 years.
Where to subscribe?
The subscription can be made with an insurer, a bank, a mutual or a funeral establishment.
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What you must remember
- A funeral insurance is taken out for two main reasons: to relieve those around you of the costs of your funeral and to allow you, if necessary, to anticipate the organization of the funeral.
- The capital contract is perfect for those who only want to manage the financial aspect of their funeral. For others, wishing to also anticipate the organization, the funeral convention is then more appropriate and recommended.
- Although there are advantageous and adapted solutions for subscribing late, it is preferable to subscribe before the age of 75.
- The price of funeral insurance varies greatly depending on the profile, budget and wishes of the subscriber.
