Death is the reality of Life, it’s the only thing which is certain in life and guaranteed to happen at some stage. Imagine the demise of a breadwinner; it’s the most insurmountable of events and can leave a huge burden of debt behind. Ever wondered the expenditure incurred on one’s funeral? India being a secular land, has people of various religions and beliefs. Different religions follow different funeral customs. Some bury, some burn the body into ashes. However, it doesn’t end there.
The expenditure starts from arranging for a casket to the funeral luncheon; calling a pandit who reads ‘Garud Puran’ for one’s ‘Moksha’ to the condolence meeting to offering money and gifts to the pandit for his services to arranging stay for the relatives; from arranging a vehicle to carry the casket to flowers to the plot to digging and filling the grave…
Ever wondered how much all this can cost?
Make hay while the sun shines, it is rightly said; why wait for an unforeseen event to hit you hard? Rather, be prepared.
Funeral expenses can range anywhere between Rs.50,000 to Rs.5,00,000 in India. For some it’s as high as the expense on a wedding. Thus the sudden demise of our loved ones may leave us bankrupt or may put us under heavy burden.
Funeral preplanning is a highly personal decision, so there’s no typical insurance plan. Unlike some other types of insurance, this is less a “what if” financial strategy and more a question of “when.”
Abroad, there are insurance companies who offer funeral expenses under a protection plan. There are a few companies as well who covers funeral expenses stand-alone. With this coverage, you can plan many details of your funeral, you can list the things you want to happen and be included as a part of funeral function including the products and services that it will entail, and pay for them in advance.
We in India do not have any funeral insurance or any companies covering funeral expenses. However this can still be covered under an insurance policy. When you buy a life insurance policy make sure you add funeral expenditure to it so that when a claim is made on death it’s accounted for.
If you think a sum assured of 20 lakhs is enough for your life insurance in the current scenario, add an appropriate amount which you think would be needed to cover your funeral expenses.
That is, f you think an amount of 5 lakh will be enough to cover your funeral expenses, you should take a sum assured of 25 lakh not 20 lakh. In this way you cover your life, and funeral expenses are reimbursed.
October 13th, 2008 at 5:35 pm
Interesting write up…this type of insurance is non-existent in India…you have shown a good way of adding that cost in life insurance though…however we certainly hope the introduction of such plan in India with the growing need of insurance.
October 15th, 2008 at 2:47 pm
This type of insurance doesnt exist in India because people in India are still not very practical in such issues, they don’t plan for their funeral. But this will become very important in near future.
Nice article!
November 19th, 2008 at 6:55 pm
Honestly, even after reading this piece and being aware of what it would cost for a funeral I still would not want a cover for the same. I might as well use the money either for investment or to cover other risk.
November 20th, 2008 at 1:11 am
Quiet surprising that there is an insurance cover for funeral expenses! I am very curious to know which insurance companies give such a cover?
November 20th, 2008 at 11:20 am
Very very true article one forget the ultimate truth on the earth, excellent suggestion by the author.
It should be available in India. Because in India, Marriage and funeral expenses these days cost the same,
November 20th, 2008 at 11:22 am
Hmmh interesting you can even plan your funeral that’s something great you don’t leave any problems for your dear ones.
The regulator should be taking some measures for the same.
November 20th, 2008 at 11:24 am
Insurance coming to your own rescue even you don’t exist in the world. Funerals expenditures are real high I agree.
But i think this kind of insurance would be for a certain class of people only.
November 20th, 2008 at 11:26 am
A bold article but person buying an insurance is actually accepting the truth of death so why not extend that truth.
November 20th, 2008 at 11:26 am
Heaven or Hell one doesn’t know but hinduism says if funeral is proper person goes to heaven so lets plan our journey to heaven…
December 18th, 2008 at 1:42 pm
Wow that’s some plan eh! Never thought such plans ever existed….seriously its beneficial visiting your blogs you guys have some real great write-ups…great goin guys…cheeers!
December 18th, 2008 at 1:44 pm
My question please could you tell me which companies offer the same….you have mentioned that its a rare concept…and can be covered under life insurance segment….is that the only way out?
December 18th, 2008 at 1:45 pm
Hey i know of this plan very popular in UK…hope to see them become popular over here as well…since funeral are equally expensive.
December 18th, 2008 at 1:48 pm
Interesting write-up…only if this plan could be made available here would be much better…i believe insurance company like ICICI Lombard who are sensitive to peoples needs would be the first to launch such a plan…since they have introduced plans which no one has yet dared to.