For a life insurance broker, I take a pretty laid-back approach to death.
I guess it’s a coping mechanism.
Otherwise, I’d curl in a ball, rocking back and forth, weeping.
We can either accept the inevitable (and prepare for it) or we can stick our heads in the sand and become a financial burden when we eventually board the stairway to heaven.
According to An Post, the average cost of a funeral ceremony in Ireland is €4062* (excluding the cost of your burial plot)
If you live in Wexford, you’re “in luck” as it has the lowest average price of €3,408.
So what does this €4,000 cover?
What else adds to the average cost of a funeral in Ireland?
The cost of a plot in Ireland varies wildly depending on where you live.
Take Dublin for example, if you live in Deansgrange in Dublin, you better start saving:
The cost quoted for a double plot in a graveyard in Deansgrange was €32,000!
While the same sized plot in Shanganagh, Dublin was quoted at €5,600 – showing there’s a massive difference in price depending on where you want to be laid to rest.
Some funeral homes offer a pre-payment option so you can plan in advance.
Otherwise, you can use life insurance to pay for your funeral costs.
Using life insurance to pay for your funeral costs is simple.
Let’s say €15,000. This will be enough to pay for all the associated costs and to allow for future inflation of funeral costs.
You’re not planning on dying anytime soon, are you?
Whole of life insurance policies differs from normal life insurance policies because there is no expiry date.
Your €15,000 policy will eventually payout €15,000 at some stage in the future, guaranteed.
You can outlive a term policy.
Nobody has yet to outlive a whole life plan so best of luck with that.
To make sure your life insurance is used to pay for the cost of your funeral, you should put it in trust.
Don’t worry, this isn’t a complicated process and we can arrange it for you.
If you don’t put your policy in trust, it will form part of your estate.
So your loved ones will have to wait for a grant of probate (which can take ages) before they will get the payout.
This will cause financial stress at a difficult time.
4) Relax, knowing you’re not going to be a financial burden when your time comes.
This depends on a number of factors:
I say your health is most important because this is what can cause a significant increase in your premium if you apply to the wrong insurer.
But don’t worry, I will have spoken to all of the Irish insurance providers on your behalf before we choose which one to apply to.
This guarantees you will get the best deal with the least amount of hassle.
Yes, no problem at all, you just buy a dual life policy.
On the first death, €15,000 (or whatever amount you chooses) will pay out, on the second death another €15,000 will pay out.
This depends on the life insurance company.
You see, there has to be an “insurable interest” between the person paying for the policy and the person whose life is insured.
In plain English, this means the person paying for the policy has to suffer a financial loss on the death of the insured person.
Normally an adult won’t suffer a financial loss on the death of a parent so there is no insurable interest.
But some insurers will allow you to pay for your parent’s policy if you intend to use the proceeds to pay for a funeral.
Otherwise, the premium has to come from your parent’s bank account.
If you want to pay for the policy, you could transfer up to €3k tax-free to your parent’s bank account using the Small Gift Exemption.
This morning, Peter and his wife called me for a chat. Sadly, they have had to bury two family members this year. Therefore, are well aware of the costs involved.
They told me that for a basic funeral, they’re not going to get much change from €8,500.
Do your children have €8,500 or, like Peter’s children, would they have to go to their local bank or credit union to get a loan to pay for your funeral?
Peter said this was the last thing he wanted to force on his children.
They’ll be stressed out enough after we go without having to go cap in hand looking for a dig out.
Peter’s wife agreed.
They wanted to make sure should anything happen to either of them that at least there was a life insurance policy to cover funeral costs.
But they thought affordability would be an issue.
Peter is 48 and his wife is 43.
A dual whole of life policy for €8500 cost them €33 per month, that’s less than €1 per day to stop them from becoming a burden to their kids.
Funeral insurance isn’t something we like talking about or even considering.
Humans are optimistic by nature so it makes us uncomfortable imagining our own demise.
We get carried away with the emotions of it all.
But seeing as you’ve got this far, I might as well outline the options available to you when it comes to funeral insurance.
If you’d like me to make a recommendation on the types of cover you should consider based on where you are in life, please complete this questionnaire and I’ll be right back.
No pressure, no obligation to buy.
I’m here to help you decide on the best cover for you or your loved one.
If you’d like a quick chat first, you can schedule a call here.
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