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Money / insurance. The funeral insurance contract: how does it work?

A provision product, the purpose of the funeral insurance contract is to settle in advance the financing and terms of your funeral. It should not be confused with death insurance, which serves to protect relatives in the event of premature death. Signed with an insurance company or a bank, the funeral contract has two forms.

The capital contract

The first is a financing contract to guarantee funeral expenses. It appoints a beneficiary who, at the time of the insured’s death, will receive the saved amount.

Since July 2013, the law has stipulated that the established capital must be allocated solely for the purpose of organizing the subscriber’s funeral; only amounts in excess of their costs may be used as the recipient wishes.

Insureds also have the option of directly appointing a funeral home to which the capital is paid. However, be careful: the capital may prove insufficient due to the increase in funeral prices. According to UFC-Que Choisir, between 2014 and 2019, average funeral and cremation prices increased by 14% and 10% respectively.

The French Funeral Information Association (AFIF) noted an increase of 48% between 2006 and 2016. Although in principle a simple savings product, this type of contract can provide certain guarantees of assistance, such as the repatriation of the body of the deceased or the transport of the family.

Give benefits

The second type of contract, known as “funeral advance” allows for both the financing and organization of the funeral. If it is not to be dictated by the insurance company, the service provider (the undertaker) must still have a contract with him because he happens to be the beneficiary. As such, he is bound to abide by the provisions of the contract.

There are two formulas. The contract within standardized services offers few choices to the subscriber, if not the type of ceremony and the future of the body (burial or cremation). For the rest, whether it is the coffin, the tombstone or other products, everything is imposed.

Unlike the contract for personal services, which allows him to express all his wishes: conducting the ceremony, choosing a coffin, acquiring a concession, etc. In this case, it is signed after choosing and meeting a funeral director, who must prepare an estimate that covers all your wishes.

Conversely, the contract must also state what is not covered and mention the possibility of changing the services. However, be careful with the application fees, which can be high.

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