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Life insurance and death insurance are compatible

Funeral insurance is an insurance product closely associated with our country, in fact, it is hardly marketed in other countries. Where there is no death insurance, life insurance is generally understood as a protection tool in the event of the death of the insured. This fact makes us wonder if life and death insurance will be compatible.

To understand if these insurances are compatible, the first thing we must know is what each of them is and what coverage they offer.

Life Insurance

Life insurance policies are insurance policies that come to offer compensation to the beneficiaries in the event that the insured person dies, or, by extension, suffers some absolute or permanent disability.

These are insurances that are usually accompanied by other coverage such as accidents, and that can regulate the amount of compensation, while increasing the price of the policy to a higher level of compensation coverage.

Funeral insurance

Funeral insurance are insurance policies that offer to assume burial expenses (and derivatives) in the event of the death of the insured. These insurances come to cover expenses such as coffin, driving, funeral home, etc. We recall that the average cost per burial in our country is around €3,000.

Are death and life insurance compatible?

Although they may seem incompatible insurance, the truth is that they are perfectly compatible. We must think that life insurance is really oriented towards compensation that seeks to protect the economic stability of the user’s beneficiaries. It does not provide specific expenses for burial, repatriation, or legal or documentary expenses derived from the death of the insured, so these expenses should be extracted from the compensation.

For its part, death insurance is not going to concern itself with the future economic stability of the insurance beneficiaries, but with covering the expenses that the contracted coverage indicates, that is, all those expenses that are generated after the death of the user, contemplating issues such as coffin, cremation, mortuary, driving, repatriation if contracted, etc.

If we take into account that today the prices of life insurance policies are increasingly affordable, since these policies are configurable and can be adapted to the user’s needs, and, on the other hand, that death insurance they are really affordable, we understand that these are effectively two perfectly compatible policies.

In fact, it must be taken into account that combining both types of insurance would offer double protection, on the one hand, the economic stability of life insurance beneficiaries, and on the other hand, the fact of not having to assume expenses or procedures after his death.

When considering contracting both insurance figures, it is important that the user adjust their needs as much as possible. In other words, I looked for the amount of compensation in the life insurance that best fits what I consider necessary for its beneficiaries, and on the other hand, that I adjust the search for a death insurance that meets their needs, for example that contemplate repatriation if you need them, legal expenses, etc.