October 28, 2010

Deciding Whether Funeral Benefits Are A Worthwhile Car Insurance Coverage

There are many auto insurance coverage options available that are not legally required, and while these add-on coverage options make a policy more expensive, they can also make a policy much more useful for a driver and his or her family. One such option is funeral benefits. Funeral benefits act as a sort of life insurance policy for drivers who are killed in accidents. The benefits outlined for car insurance funeral coverage will be paid out to beneficiaries in these situations, covering the cost of funeral arrangements during a very trying time for a driver's family. Funeral benefits can be very worthwhile for some drivers; however, they can also be expensive, so it is important to consider carefully whether they are the right option for you.

First of all, if you are already paying for some type of life insurance policy, funeral benefits may be a completely unnecessary form of car insurance coverage. Many funeral benefit plans operate on an exclusion that forbids double coverage. This means that if two forms of insurance are protecting your family from funeral expenses in the event of an accident, the funeral benefits on your auto insurance policy will not apply. Life insurance may also provide a greater source of financial relief than your car insurance company's funeral coverage, so it is a good idea to investigate life insurance alternatives before buying this form of auto insurance coverage.

Carefully consider the limits of the funeral benefits package offered by your auto insurance company and compare it to other insurance options before deciding to purchase it. You should also look at cost, of course-try to determine whether you will be paying more for funeral benefits than you would pay for a separate life insurance policy. You should always read the options that your auto insurance company offers for funeral benefits and study any sections that exclude payment to make sure that you are aware of how the benefits will be paid out.

There are a very large number of serious accidents in the United States, so funeral benefits are far from an outlandish addition to a person's auto insurance coverage. When payouts occur, funeral benefits can be an incredibly important source of relief for a family in a devastating time. However, they are not right for everybody. Think carefully before you buy funeral benefits and look into all of your options. Collect quotes for auto insurance coverage online and talk with your beneficiaries. It is difficult to consider any form of insurance that deals with death, but taking a few minutes to do so is a great idea, and the only way to protect your loved ones financially.