Is funeral insurance mandatory?
Funeral insurance is undoubtedly one of the most interesting insurances if you are already aware that your death will also affect your next of kin. After all, financing a funeral is a matter that often involves a lot of costs, and you obviously don't want to saddle your loved ones with that. Especially when they are still going through the grieving period.
This is precisely why it is important to purchase funeral insurance as early as possible. Is such insurance actually mandatory, yes or no? What happens if you don't take out insurance and what consequences can you and your dependents expect? Below are clear answers to important questions.
Funeral insurance: not mandatory, but wise
To immediately answer the most important question: taking out funeral insurance is never mandatory. In other words, as an individual, it is entirely up to you whether you take out this insurance and thus whether you pay a monthly premium or not.
Of course, it does make sense to purchase funeral insurance, and there are some good reasons for doing so. First, funeral insurance ensures that your funeral can be effectively financed later with the insured amount. This puts less financial pressure on your loved ones, which is one less worry during the emotionally demanding grieving process anyway.
There are other benefits to taking out funeral insurance, which also have to do with the best interests of your family or loved ones. For example, in most cases it is possible to also insure your children immediately when you take out your own insurance. As a result, you won't pay a premium for them for a long time.
Finally, the cost of a premium in funeral insurance is usually not that high, depending on your insurer and your age. This is why it is usually recommended that funeral insurance be purchased as early as possible: the younger you are, the less premium you will pay.
In short, taking out funeral insurance is by no means mandatory but always interesting. Although it is not required by law and there are no penalties associated with not taking out this insurance, there are consequences. You can read more about them below.
What are the possible consequences if you do not have funeral insurance?
1. Your next of kin will pay for your funeral.
A first important consequence if you choose not to take out funeral insurance is, of course, that your next of kin will have to pay for your funeral. After all, with such an insurance policy, you build up the insured amount that you set in advance.
This sum can be used after your death to finance your funeral, at least if you have taken out insurance. The last thing you want is to give your loved ones a hole in their bank account after your death, so taking out funeral insurance is a logical choice.
2. Your funeral will probably be less beautiful
If your next of kin have to pay for your funeral themselves, chances are it will be less well cared for and beautiful. After all, arranging a funeral costs quite a bit of money these days, often more than 10,000 euros. Money that not everyone has at their disposal and that makes funeral insurance worthwhile.
Where exactly do these high costs come from? Things like your coffin, the ceremony of the funeral, flower arrangements, other decorations and much more. Often people underestimate how much a funeral costs and think there is no need for insurance. The opposite is true.
3. You experience more headaches and stress
Next, taking out funeral insurance is also simply interesting for yourself. After all, you don't want your next of kin to have to worry about financing your funeral and the practicalities involved.
If you want to further unburden your loved ones regarding your funeral, it is a good idea to choose Natura insurance. This insurance includes a package of services for your funeral, leaving your loved ones with no financial and practical responsibilities.
4. The municipality pays for your funeral
If you do not take out funeral insurance and you also do not have any next of kin (anymore), the municipality will usually arrange the funeral. For this, you can use the inheritance itself, unless, of course, there is no inheritance. In that case, the municipality will pay for the funeral, even if there are only debts.
By the way, the municipality also pays for the funeral if there are next of kin, but they do not commission the funeral. However, the costs for this will then fall on your next of kin.