Life Insurance

Life insurance is a contract signed between an insured and an insurer. The latter pays a certain amount to a beneficiary upon the death of the insured.

Life insurance and funeral insurance are two completely different insurances. Everything depends on the commitment of the insured. In the first case, the insurer agrees to pay the subscribed capital to a beneficiary designated in the contract, which can be a family member of the insured. In the second case, the insurer agrees to pay a sum to a funerary company to cover funeral expenses.

Life Insurance

Life insurance allows you to leave a certain sum of money to a person of your choice after your death. This insurance premium can be used to pay debt acquired during your lifetime. In this case, the life insurance serves to protect your loved ones and your family members for whom you need to ensure reimbursements. The organization with which you have taken out the loans is the beneficiary in this case, so no family member can touch this capital. The premium can be paid in a lump sum or periodically. This insurance can be used to ensure the financial stability of your loved ones or descendants for studies or for maintaining their previous standard of living despite the fact that you are no longer there.

Funeral Insurance

Unlike life insurance, funeral insurance is more for you than for your loved ones. This insurance is contracted to pay for the fees and expenses of your funeral. It relieves your loved ones of any financial obligations, but the sum is paid immediately to the funeral home and not to your family. This insurance policy is taken out so that your wishes and choices regarding your funeral are realized. The insurance premium is a fixed capital which is included in the contract. The beneficiary, being the funeral operator, has only to follow the services requested by the insured upon the death of the latter.

Both forms of insurance have advantages that guarantee financial protection of your loved ones in the case of your death. Life insurance leaves a capital they can use and funeral insurance helps them avoid the fees and expenses of your funeral.