Funeral insurance allows him during his lifetime to build up capital that will be used by a beneficiary named in advance in the contract to organize and pay the expenses of his funeral. A good way to relieve loved ones at the time of death. While there are no precise rules as to the age at which to take out a funeral insurance contract, the different possibilities offered by this insurance to build up such capital do not offer the same advantages at all ages.
Funeral insurance: what are we talking about?
Taking out a funeral insurance policy is one of the ways to avoid placing the financial burden of your funeral on your loved ones, but also, in some cases, to plan in advance all the material details of your funeral.
A funeral is expensive. It takes an average of nearly 4,500 to 5,000 euros to ensure a funeral worthy of the name. On the occasion of a death, the financial cost is most often borne by the relatives. But there is a way to relieve them of this costly burden: funeral insurance.
This insurance contract offers, during his lifetime, to be able to constitute a capital that will be paid to a beneficiary that the deceased will have designated in his contract and who can use this sum to finance the funeral. This capital is valued throughout the duration of the contract. This is called a funeral insurance contract in capital finance.
Death insurance, through other types of contracts, can also allow a person to plan the modalities of organization of his funeral. The funeral insurance contract in standardized benefits thus gives the possibility, in addition to covering funeral expenses, to define at least its choices in terms of funeral. This may include, for example, specifying in this funeral insurance contract his wishes between a cremation and a burial, or the type of ceremony to be organized, secular or religious. Finally, the funeral insurance contract in personalized services goes even further by covering all the costs related to the funeral itself, but also by responding to the last wishes of the deceased concerning their organization. In this way, he chooses in advance (at the signing of the contract) the funeral company that will take care of the conduct of all his funeral according to his wishes expressed in advance.
The ideal age for taking out funeral insurance varies according to the desired capital
In general, there is no minimum or maximum age for taking out funeral insurance, even if, in practice, the French most of the time take out such insurance between 50 and 60 years old. They are also nearly 5 million to do so according to the French Insurance Federation.
The age at which to be interested and take out funeral insurance depends mainly on the capital that one wishes to bequeath to a beneficiary at the time of his death in order to cover the costs of his funeral and possibly organize it in every detail, but also on the type of payments planned to constitute this capital. Funeral insurance offers three different ways to do this, which have their advantage depending on the age at which the insurance is purchased.
For those under 65: payment of a temporary premium
The capital built up to organize his funeral may give rise to the payment of a bonus called “temporary”. These are contributions and periodic payments, either annual, quarterly, or monthly for a period defined and provided for in the funeral insurance contract, generally between 5 and 20 years.
This type of payment makes it possible to spread contributions over time. A solution most often adopted by those under 65, and in particular those aged 40-50 still in employment.
For 70-80 year olds: payment of a lifetime premium
In the context of funeral insurance, the insured can opt for what are called life annuity payments, that is to say contributions of the amount often small but which have the disadvantage of having to be paid until the death of the insured, even if the capital subscribed at the beginning is reached before.
By subscribing after age 70 this type of funeral insurance contract, the risk of continuing to pay contributions “at a loss”, that is to say if the planned capital is already constituted, is lower.
For those aged 80 and over: payment of a one-off premium
As its name suggests, the payment of a single premium under a funeral insurance contract consists in paying at the time of the opening of the contract, in one go, the amount that corresponds to the desired capital to meet the costs of his funeral, and its organization in some cases.
A solution easier to implement by the oldest who often have savings built up throughout their lives, and who can thus also benefit, at the time of their death, from a capital valued according to the duration of their funeral insurance contract. Be careful, however, a number of insurance companies refuse to take out such a contract.