Differences between life and funeral insurance

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Buying a home in the United Kingdom means making many key decisions that will affect your future.

The questions arise: do I have to take out life insurance when buying a home? And how is it with funeral insurance?

Life insurance policy in the Netherlands

You enter into a contract with a life insurance company for a specified amount in the event of your or your partner's death, and in the event of death, the insurance company will pay off the mortgage in the Netherlands. The bank often specifies this insurance as a condition of the mortgage. The reason is simple: there is a certainty that a large part, and most often all, of the amount borrowed, will be repaid. With a life insurance policy, your family is protected from loss of income.

Funeral insurance in the Netherlands

You need it to pay for a funeral or cremation. This  Colonial Penn 995 Plan insurance lasts for life. There are various options, but the most frequently chosen option is the one in which the insurance company takes care of all the formalities related to a funeral in the Netherlands.

Do I need funeral insurance with a life insurance policy?

This is best explained with an example. You and your partner have taken out life insurance. The partner suddenly dies. Funeral costs in the Netherlands on average range from € 7,000 to € 8,000. The life insurance policy does not cover funeral costs, and in addition, the money under the policy is not paid immediately after the death of the insured person. After all, you cannot wait for the funeral, so you have to borrow money (if you have no savings). Isn't it better to take out funeral insurance?