What is final expenses insurance?

What does final expenses insurance cover?

Final expenses insurance is designed to help cover immediate expenses that come up after someone passes away, such as a funeral service, burial or cremation costs and unpaid bills.

In the case of North Cover Final Expenses Insurance, you can choose a coverage amount up to $25,000, which your beneficiary (or beneficiaries) will receive as a lump sum once your claim is approved. Once paid out, your loved ones can use the benefit however they see fit to fulfil your final wishes.

Here are just a handful of examples of the types of costs that final expenses insurance can help cover:

• Funeral expenses (such as funeral home and funeral director services costs associated with religious institutions)
• Death certificate
• Urn or casket
• Burial or cremation costs
• Flowers or other funeral décor
• Catering
• Keepsakes
• Obituaries
• Immediate mortgage or loan payments
• Outstanding bills (such as medical costs, credit card bills, etc.)
• Anything needed for the family at the time (such as tuition fees, car loans, groceries etc.)

The cost of a funeral alone can be high. Most Canadians peg the average cost of a funeral at just over $9,000, and nearly three quarters said they think the cost of funerals is increasing. Meanwhile, estimates within the funeral, burial and cremation industry vary, but many put the cost between $7,000 and $20,000. It all depends on individual circumstances, including your final wishes. But ultimately, having something extra set aside after you go can be a huge financial helping hand for your loved ones.

Why you should consider final expenses insurance

Final expenses insurance is important for anyone who wants to make life easier for the people they care about when they pass away.

In a recent poll we conducted, 82% of Canadians said they’d hate to leave their loved ones with the burden of final expenses, and 72% would want to give their family some kind of financial support after they pass away.

If you’re like most of us and want to ease the strain on your loved ones, final expenses insurance is a great option. It’s not only a great step towards financially protecting your loved ones during a tough time, but it can also give you peace of mind so you can focus on enjoying life – and not worrying about what you might leave behind.

How much final expenses insurance coverage should I get?

How much final expenses insurance coverage you need depends on your financial circumstances and personal wishes. Whilst this is your own decision, you don't have to make it alone!

Our team of Canadian-based licensed advisors can help guide you through the application process. They can help you choose a coverage amount between $3,000 and $25,000 depending on your needs and budget. North Cover Final Expenses Insurance offers flexible and affordable coverage, so you know you're in control!

Here are some things to consider when selecting the amount that’s right for you:

• How you want your family to honor you when you pass, like the type of funeral or memorial service you want.
• How much in savings you and your loved ones may have to put towards final expenses.
• If you are eligible for government support, such as financial assistance for veterans’ funeral costs.
• Any outstanding bills, debts, or expenses you know you might leave behind.

If you’re unsure on how much coverage you need, our licensed advisors can help guide you.

Final expenses insurance vs. life insurance: what’s the difference?

You may be thinking, “final expenses insurance and life insurance are basically the same, right?”

Not quite. Both are made to provide financial support to the people you love after you pass away, but they each work differently.

Final expenses insurance is often referred to as funeral insurance, funeral expenses insurance, or burial insurance. It’s a distinct type of policy that helps cover immediate expenses after someone passes away. That typically includes costs for a funeral, memorial or celebration of life, or even outstanding debts.

A person’s final expenses tally can be thousands of dollars, and a lot of those costs come within just a few days of someone passing away. That’s why North Cover Final Expenses Insurance offers coverage up to $25,000 as a lump sum, paid out within a few days of the claim being approved.

Final expenses insurance is easy to get, just like all our North Cover insurance products. If you're a Canadian resident (excluding Quebec) and aged between 20 and 80, you're guaranteed acceptance for final expenses coverage. You'll also be covered for any cause of death, including accidental death in the first 12 months and any cause of death after this time (excluding suicide for 24 months).

Then there’s life insurance, which is also an important part of planning ahead. It’s intended to replace someone’s income lost over a prolonged period of time, so the total coverage amount is typically higher than final expenses insurance. Because of that, life insurance claims can sometimes take a little longer to pay out, so it’s not quite as easy to use for immediate expenses. However, it’s still an important way to make sure your loved ones can pay their bills and live a great life even after you’re no longer with them. Find out more in our life insurance FAQsFrequently Asked Questions.

While there are clear differences between final expenses insurance and life insurance, both can go a long way towards giving you and your family some peace of mind.

We’re proud to offer flexible and affordable policies through North Cover Final Expenses Insurance and North Cover Life Insurance.

How can my loved ones make a final expenses insurance claim?

Our philosophy is simple: at one of the hardest times, claiming should be easy.

Waiting for financial support can be frustrating and tense, especially when immediate expenses like funeral costs, burial costs, and more are adding up – not to mention coping with a loss at the same time.

That’s why our claims team works hard to deliver final expenses insurance payouts within just a few days, with minimal paperwork. In other words, we do our best to ensure your loved ones will have the money they need in hand, as quickly as possible.

Here’s how to make a claim:

1. Contact us: After you pass away, your loved ones need to notify the North Cover team that a claim will be made. Once notified, our helpful team members will reach out and provide all the necessary details and further explain the claims process and next steps.
2. Make your claim: Lots of paperwork sucks – we know. That’s why we make everything as simple as possible. Your loved ones will have to fill out the required claim form and share a few important documents, but the whole process is straightforward, and they will be supported by our team if there are any questions along the way.
3. Claim outcome: Once the above steps are complete, your loved ones will be notified that the claim has been received, and we will provide them with a timely update on the outcome. Approved claims are paid out quickly so immediate costs can be addressed promptly.