Funeral insurance isn’t something we like talking about or even considering.
We’re optimistic by nature, so it makes us uncomfortable to imagine our own demise.
We get carried away with the emotions of it all.
But since you’ve come this far, I might as well outline the options available to you regarding funeral insurance.
Funeral Insurance in Ireland
As a life insurance broker, I take a pretty laid-back approach to death.
I guess it’s a coping mechanism.
Otherwise, I’d curl in a ball, rocking back and forth, weeping.
We can either accept the inevitable (and prepare for it) or we can stick our heads in the sand and become a financial burden when we eventually board the Stairway to Heaven.
By the way, the fact there is just a Stairway to Heaven but a Highway to Hell says a lot about anticipated traffic numbers.
What is the Average Cost of a Funeral in Ireland?
According to Fanagans, these costs are dictated by the individual family requirements and can vary from €2,500 to €8,475 and upwards.
If you live in Wexford, you’re “in luck” as it has the lowest average price of €3,408.
So what do you have to pay for?
removal and care of the deceased,
embalming,
removal to church/cemetery,
hearse,
funeral director’s fee
coffin.
What else adds to the average cost of a funeral in Ireland?
a church offering fee,
money for the priest,
music at the service,
the obituary notice in the paper
or the cost of your plot.
The cost of a plot in Ireland varies wildly depending on where you live.
Take Dublin, for example. If you live in Deansgrange in Dublin, you better start saving:
The cost quoted for a double plot in a graveyard in Deansgrange was €32,000!
Meanwhile, the same-sized plot in Shanganagh, Dublin, was quoted at €5,600.
As you can see, the price varies massively depending on where you want to be buried.
How Do You Prepay Funeral Costs in Ireland?
Some funeral homes offer a pre-payment option so you can plan in advance.
Otherwise, you can use life insurance to leave money behind to pay for your funeral costs.
How do you use Life Insurance to pay for your Funeral Costs?
Using life insurance to pay for your funeral costs is simple.
1) You calculate how much it will cost to give you a proper send-off
Let’s say €20,000.
This will be enough to cover all the associated costs and allow for future inflation of funeral costs.
You’re not planning on dying anytime soon, are you?
2) Buy a whole-of-life policy for €20,000
Whole life insurance policies differ from normal life insurance policies because there is no expiry date.
Your policy will pay €20,000 at some stage in the future, guaranteed.
You can’t outlive a whole life plan.
The “danger” of using a term life insurance policy is that you can outlive the term.
3) Relax, knowing you won’t be financially burdensome when your time comes.
Which Insurer is Best for Funeral Insurance?
This depends on several factors:
The cost of your funeral
Type of cover you need
And most importantly, your health
Your health is most important because it can significantly increase your premium if you apply to the wrong insurer.
But don’t worry if you use us as your advisor.
We will speak to all Irish insurance providers on your behalf before choosing which one to apply to.
This guarantees you will get the best deal with the least amount of hassle.
Can I add my Spouse to my Funeral Insurance Policy?
Yes, no problem at all; just buy a dual-life policy.
On the first death, €20,000 (or whatever amount you choose) will be paid out, and on the second death, another €20,000 will be paid out.
Can I add my Partner?
If you’re not married, it’s best to take out two single-life policies and pay each other’s premiums to avoid inheritance tax.
Can I pay for my Parents Funeral Life Insurance Policy?
This depends on the life insurance company.
You see, there has to be an “insurable interest” between the person paying for the policy and the person whose life is insured.
In plain English, this means the person paying for the policy has to suffer a financial loss if the insured person dies.
Normally, an adult child won’t suffer a financial loss on the death of a parent, so there is no insurable interest.
However, some insurers will allow you to pay for your parent’s policy if you intend to use the proceeds to pay for a funeral.
Otherwise, the premium has to come from your parent’s bank account.
By the way, you could transfer up to €3k tax-free to your parent’s bank account using the Small Gift Exemption to pay for the premiums.
Funeral Life Insurance
Earlier this week, Peter and his wife called me for a chat.
Sadly, they have had to bury two family members this year.
Therefore, were well aware of the costs involved.
They told me that for a basic funeral, they won’t get much change from €8,500.
Do your children have €8,500 or, like Peter’s children, would they have to go to their local bank or credit union to get a loan to pay for your funeral?
Peter said this was the last thing he wanted to force on his children.
They’ll be stressed out enough after we go without having to go cap in hand looking for a dig out.
Peter’s wife agreed.
They wanted to make sure should anything happen to either of them that, at least there was a life insurance policy to cover funeral costs.
But they thought affordability would be an issue.
Peter is 48, and his wife is 43.
A dual whole of life policy for €8500 cost them €33 per month, that’s less than €1 per day to stop them from becoming a burden to their kids.
Over to you…
My favourite funeral insurance is from New Ireland – you can read more about it here.
If you’d like me to make a recommendation on the types of cover you should consider based on your current situation, please complete this questionnaire, and I’ll be right back.
No pressure, no obligation to buy.
I’m here to help you choose the best cover for you and your loved ones.
Thanks for reading
Nick
Editor’s Note: We published this blog in 2020 and have updated it since.
