What is funeral insurance? Explaining the way to steel oneself against funeral expenses, the way to choose insurance, advantages, and drawbacks

What is funeral insurance?

Funeral insurance is insurance to hide the funeral value once you die and is included within the bit short-term insurance (mini-insurance).

What is “small amount short-term insurance”?

Insurance with a small amount of insurance and an insurance period of 1 year (2 years counting on the field) within a particular business scale of the insurance industry.

Funeral insurance is cheaper and sometimes doesn’t require a doctor’s consultation when enrolling and is characterized by looser enrollment requirements than general insurance products.

Also, general insurance products have an upper limit on the age at which they will be enrolled (65 to 75 years old), but funeral insurance products also are available for up to 89 years old.

There are two sorts of insurance to hide funeral expenses, life assurance (whole life insurance) additionally to funeral insurance, so it’s necessary to think about which one to require out after clarifying the aim of removing insurance. There is.

The market price for funeral expenses

According to the “11th Funeral Questionnaire Survey Report (conducted from August to September 2016)” conducted by the Japan Consumers Association, the market value for general funeral expenses is 1.95 million yen.

In addition to the value of performing the funeral, the subsequent costs are required for the funeral.

Examples of funeral costs

• Funeral
• Overnight behavior and devotion
• Offering to monks and temples

In addition to the above, it also costs to arrange leftover items and found out a grave, so in some cases, a total cost of three million yen or more is required.

It is economically burdensome to hide these costs from savings, but if you’ve got funeral insurance beforehand, you’ll cover the funeral value.

How to steel oneself against a funeral and its advantages and drawbacks

There are two main ways to hide the value of a funeral.

How to steel oneself against a funeral

• Funeral insurance (small amount short-term insurance): Recommended for elderly people that only want to organize for funeral expenses
• Life insurance (whole life assurance): Recommended for children who want to possess life insurance

Let’s check the benefits and drawbacks of every insurance.

Funeral insurance (small amount short-term insurance)

The advantages and drawbacks of removing funeral insurance (small amount short-term insurance) and organizing for a funeral are as follows.

Benefits of removing funeral insurance (small amount short-term insurance)

• Monthly premiums are cheaper than general insurance products
• The warranty period is one year, and it’s easy to review the contract details
• Even people with the illness can join because there’s no need for a doctor’s examination to hitch.
• There are insurance products that even elderly people over 80 can remove

Disadvantages of removing funeral insurance (small amount short-term insurance)

• Since it’s a throw-away type of insurance, there’s no cancellation refund, etc.
• Due to the upper limit of the insurance amount, there’s an opportunity that the principal could also be broken if you join for an extended time.

The advantage of funeral insurance (a small amount of short-term insurance) is that monthly premiums are cheaper than general insurance products.

It often doesn’t require a doctor’s examination, which has the advantage that even people with chronic illnesses and, therefore, the elderly can join.



On the opposite hand, funeral insurance may be the throw-away type of insurance. Therefore the disadvantage is that the premiums paid up to its point won’t be returned within the case of cancellation.

Please note that there’s an upper limit to the quantity of insurance that will be paid, so if you join for an extended period of your time, you’ll lose your principal.

Because of these advantages and drawbacks, funeral insurance is suitable for “elderly people that only want to organize for his or her own funeral expenses.”

Life insurance (whole life insurance)

The advantages and drawbacks of removing life assurance (whole life insurance) and organizing a funeral are as follows.

Benefits of removing life assurance (whole life insurance)

• There may be a sense of security that the guarantee will last a lifetime
• At the time of cancellation, you’ll receive an outsized amount of cash as a cancellation refund

Disadvantages of removing life assurance (whole life insurance)

• Monthly insurance premiums are set higher thanks to the savings function
• Strict enrollment requirements like doctor’s examination and notification obligation
• There is an upper limit on the age at which you’ll join (65 to 75 years old)
• The most significant merit of life assurance (whole life insurance) is that there’s a way of security that the insurance will last a lifetime.

Even if you cancel the contract, you’ll receive the cancellation refund consistent with the time, so you’ll rest assured, albeit you would like to pay a mortgage, raise a toddler, or look after your own parents.

Suppose you’ve got passed the premium payment period. In that case, you’ll receive a surrender value that exceeds the premium you paid, so whole life assurance is suitable for people who want to organize various situations in their lives and funeral expenses.

However, you’ll not be ready to remove life assurance in some cases because the monthly premium is high, and you would like to be examined and notified by a doctor.

There is an upper limit to the age at which you’ll join, so basically, it’s recommended for children who want to possess life insurance.