Anticipating the financing and organization of his funeral during his lifetime remains a rare practice in France.
This topic remains taboo. But facing it when you’re still in good health will save your loved ones a lot of worry. In times of mourning, it is not always easy to determine the formalities or to know what the deceased would have wanted as a ceremony. Solutions exist to protect loved ones from this task and financial burden. One of them is funeral insurance. In this article, let’s see the features of this contract and take a look the cheapest funeral insurance in 2023.
What does funeral insurance do?
Funeral insurance is a capitalization contract to finance the subscriber’s funeral. Their funding costs an average of €4,000, whether it is for a funeral or a cremation. Heirs and descendants are responsible for paying them even if they renounce the inheritance. Anticipating this amount means you relieve your family and loved ones when the time comes. It is also an effective means of enforcing one’s last wishes. The ideal is, of course, to draw up a will or a notarized written document in order to decide with full conscience on the type of funeral, the place, the organization of the ceremony. By taking out a funeral insurance contract, the subscriber can make all the necessary arrangements for his funeral.
The different types of funeral insurance
There are two types of the cheapest funeral insurance contracts in 2023 on the market: funeral insurance in capital and funeral insurance in benefits.
Capital funeral insurance
With endowment insurance, the policyholder leaves a capital to a beneficiary, the size of which he has previously defined. It varies depending on the insurance companies from €3,000 to €10,000 on average. The beneficiary, which can be changed during the contract and mentioned in the clause established for this purpose, is a family member, a friend, etc. Good to know ! Since Law 672 of 2013, the paid-in capital, whether paid or free, is used exclusively to pay for funerals. The profit can be freely used by the contract recipient.
Funeral insurance benefits
The cheapest funeral insurance in 2023 can also be a standardized or personal benefit contract. The subscriber provides a capital for the financing of the funeral, but also decides with a provider their entire organization. The contract is therefore threefold between the insurance company, the subscriber and an undertaker. The latter must respect the written wishes of the deceased, namely:
- Type of burial: cremation or burial
- The type of ceremony: religious or civil
- The type of casket or urn
- Messages, flowers, etc.
The different types of funeral insurance payouts
There are several options for paying your contributions on the cheapest funeral insurance in 2023, namely:
- Payment of a single premium: the capital is paid into the contract at once. This option is ideal for the elderly
- Payment of monthly, quarterly or annual contributions over a given period varying from 5 to 20 years depending on the insurance companies. This option is ideal for young seniors
- Payment of lifetime contribution (monthly, quarterly or annually) until the death of the subscriber. This option is recommended for seniors over 70
The difference between funeral insurance and life insurance
Funeral insurance should not be confused with death insurance. The first is a savings contract to finance his funeral only. The other is a fixed-term maintenance contract. The subscriber builds up capital in the form of contributions, which he leaves to a beneficiary in the event of death. He can use the capital as he wants. If, on the other hand, the risk occurs within the deadline, the contributions paid are lost. Death insurance is therefore a non-refundable contract.
What is the cheapest funeral insurance in 2023?
As with any insurance product, the primary determinant of the price of the cheapest funeral insurance in 2023 is the provider chosen. They are free to set their prices and, according to their current commercial policy, they can offer preferential prices or discounts of 20 to 40% when, for example, a contract is entered into as a pair. The subscriber’s profile is also very important for the price of the cheapest funeral insurance in 2023. We have made two comparisons to get an impression of the prices charged. The prices mentioned are of course purely indicative and are not intended to replace a request for a personal offer.
Prices of the cheapest funeral insurance in 2023 for seniors aged 70 and over
For a one-off funeral contract of €6,000 with life annuity, the cheapest funeral insurance in 2023 costs on average:
- €42.47/month at Mutac
- €47.73/month at UCR
- €49.44/month at Santiane
- €50.76/month with Aviva
- €58.94/month at Plan
- €67.86/month with Metlife
Prices of the cheapest funeral insurance in 2023 for a 50-year-old senior
For a one-off funeral contract of €5,000 with temporary contributions over a period of 15 years, the cheapest funeral insurance in 2023 costs on average:
- €35.47/month at Mutac
- €45.95/month at Santiane
- €50.01/month at Prévoir
What criteria determine the price of the cheapest funeral insurance in 2023?
Funeral insurance costs range from €20 to €100 on average per month. Several parameters come into play to determine it, such as:
- Subscriber’s age
- The amount of capital
- The payment method for contributions
- The number of insured persons
- The selected options such as repatriation of the body, animal care, psychological support, etc.
- Additional costs such as administration fees or access fees
In the case of a life annuity contract, it is not uncommon for the subscriber to pay more premiums than the capital planned at the outset. In addition, you should know that the insurance company may require a medical questionnaire to assign the subscription to a contract. Age, weight, medical history or risk factors such as smoking, various information is requested. Depending on the risks assumed by the company as per the profile of the subscribers, the insurance company may grant membership with or without increasing the premium or even deny it if the health condition is deemed to be unfavorable. Unlike death insurance, the request for a medical questionnaire remains rare for the cheapest funeral insurance in 2023. If the subscriber dies before the end of his contract, the capital is paid out, whatever happens to the named beneficiary.
How to choose the cheapest funeral insurance in 2023?
Before starting his search for the cheapest funeral insurance in 2023, the senior makes an accurate assessment of the funeral he wants and especially the budget he will need. He can request a free quote from a funeral provider. If he chooses a funeral contract within services, in principle a funeral agreement is drawn up, specifying the course of the ceremony and all necessary supplies. Once the capital, the beneficiary and the type of contribution are determined, the senior can compete with the different service providers in the market. It can be an insurance company, a mutual insurance company, a welfare institution, an insurance intermediary. The fastest solution to obtaining several offers at the same time is to use an online comparator. This tool, available on several Internet platforms, is free and without obligation. After filling in a form, the senior gets a selection of the best and cheapest funeral insurance in 2023 corresponding to their profile and requirements. If he lacks knowledge on the subject, he can appoint a broker to investigate and negotiate the contract for him.
In conclusion, the cheapest funeral insurance in 2023 turns out to be the one with the lowest capital and deposit period. However, we advise the subscriber to consider the appropriate budget in advance so that the recipient has the necessary funds when the time comes. Before choosing a funeral contract, the senior compares several offers and makes sure to check:
- Waiting periods
- Warranty Exclusions
- Capital increase
- The increase of the contribution according to age
- The ability to change certain options, such as funeral type, recipient, etc.
- The conditions for redemption and participation in the insurance company’s dividend
- The amount of ancillary costs such as administration fees
