About life-long ritual insurance. Funeral insurance

In 2015, Russians paid more than 1 billion rubles for funeral insurance policies - such insurance means that the insurance company pays for the costs of the client's funeral. In the first three months of 2016, insurers' fees for this type have doubled. Banki.ru figured out why the popularity of "funeral" insurance is growing and how they work.

Billion on the way

In 2015, fees under the ritual life insurance program amounted to more than 1 billion rubles, Rosgosstrakh Life told Banki.ru - in fact, this is the only insurer in the Russian Federation offering a life insurance service with a funeral service (a small company, Dignity, also offered a similar product, was revoked on January 14, 2016).

The popularity of "funeral" policies is growing - fees for 2015 are almost double the results of 2014, when the MARS funeral insurance program was launched, and in the first quarter of 2016 premiums exceeded 300 million rubles, which is almost one and a half times more than in the same period last year, clarified in Rosgosstrakh Zhizni.

Such an insurance contract is valid for life, and the insured event is death for any reason, according to the description of the program on the company's website.

“Under the terms of the insurance program, the insurance company can transfer a cash payment to the beneficiary or independently organize the provision of funeral services in the amount of the sum insured,” the insurer explains. The sum insured can range from 15,000 to 300,000 rubles, services are provided by a funeral company - a partner of the insurer, throughout the Russian Federation, regardless of the place of conclusion of the contract.

Funeral insurance is designed, in particular, for pensioners and single people who do not have enough money to pay for the funeral, as well as for those who plan their expenses in advance and are financially responsible for elderly parents, the description on the company's website says. The policy can be issued by a person aged 18 to 80 years.

Funeral insurance is most in demand among people aged 35-70, Alexander Bondarenko, general director of IC Rosgosstrakh Zhizn, told Banki.ru. Regions - leaders in terms of sales: Krasnodar Territory, Sverdlovsk Region, Mordovia.

The cost of such insurance varies greatly depending on gender, age and type of insurance program. Insurance premiums can be paid as a lump sum, and monthly, quarterly, every six months or annually.

“For a 50-year-old woman, a MARS ritual insurance policy for 100,000 rubles costs 4,706 rubles a year,” Alexander Bondarenko gives an example. - Often clients choose to pay a lump sum. For example, for a 50-year-old woman, a policy for 50,000 rubles costs 21,348 rubles. This option is chosen by customers who have already set aside money for a rainy day.

The growing popularity of "funeral" insurance in "Rosgosstrakh Zhizni" is explained by the fact that it is "in demand by the population and has established itself as a simple and reliable tool that not only guarantees a decent organization of a funeral, but also provides protection from ritual fraudsters."

However, apparently, customers did not always buy such insurance consciously: for example, in November last year, the Chuvash department of the Federal Antimonopoly Service revealed the fact that Rosgosstrakh was imposing a ritual insurance contract when buying an OSAGO policy. “The order was not issued to the defendant, since the branch terminated the life (ritual) insurance contract with the car owner and returned the money paid to him under an additional life insurance policy,” the OFAS specified.

Who benefits?

Rosgosstrakh Zhizni refused to disclose the statistics of payments under funeral insurance policies, noting only that "payments grow in proportion to the increase in the number of contracts concluded."

“This may indicate that the loss ratio of the insurer under this program is extremely low,” the source of Banki.ru in the insurance market believes. - If we are talking about an effective product aimed at the client, the cash flow should go both ways, that is, there should be both fees and payments. And if the product is effective for one of the parties, then the movement of cash in the other direction is usually silent.” In addition, if we are talking about people living alone, then relatives may not know about the existence of this policy, not find it, and therefore not apply for payment, the expert adds.

Life insurance contracts are long-term, and it is wrong to draw conclusions based on one or two years of the existence of such a product, objected the chairman of the committee of the All-Russian Union of Insurers for the development of life insurance and the general director of IC Sberbank Life Insurance Maxim Chernin.

“The program was launched, for example, a year ago, and payments can now be at a fairly low level. But this doesn’t say anything at all, it doesn’t say anything about the quality of the product: the product is long-term, and the result can only be viewed on the horizon of at least 5-10 years, he argues. - Very old people are unlikely to be taken for insurance, or it will be with a multiplying coefficient. And a 50-year-old buyer of such insurance, thank God, does not die at 51. This is a long-term instrument, and the product in question is generally for life, and payments on it will definitely occur sooner or later.”

The dark side of the "coffin" policy

Ritual insurance, like any other, can have a number of pitfalls, experts interviewed by Banki.ru draw attention.

"This type of insurance simply duplicates the functions of the state, which guarantees citizens a social benefit - a certain amount of money for burial," - says the interlocutor of Banki.ru in the insurance market.

“The insurance rules for one of the program options also say that in the event of an insured event, the beneficiary must submit documents confirming the costs of the funeral, including the costs of paying for the provided guaranteed list of funeral services in accordance with the current legislation of the Russian Federation,” says the chief insurance Banki.ru analyst Dmitry Zhukov. “From this wording, it is not very clear whether expenses are compensated twice, or whether it is necessary to choose where to apply.”

Logically, this should mean that the relatives of the insured person will receive payment from both the state and the insurance company, Maxim Chernin believes.

“Life insurance is unique in that a client can be insured in ten companies and all of them will be required to pay the sum insured upon the occurrence of an insured event, since there is no marginal cost of life,” Chernin explains. “This is the difference, for example, from property insurance and from comprehensive insurance - you cannot insure a car in two places.”

Dmitry Zhukov also draws attention to such a nuance: in two out of three program options, if an insured event occurred in the first two years of the contract, the payment occurs only in the amount of paid contributions (that is, in fact, the money that the client paid to the company is returned), and only from the third year the full sum insured is paid. “As with the purchase of any policy, it is important that, at the stage of concluding an agreement, the client clearly understands what he has bought: what kind of product it is, what kind of coverage it has and what exceptions,” Maksim Chernin sums up.

For Africans and migrants

Abroad, such insurance products are successfully sold in those countries where, due to cultural and religious reasons, it is important to observe certain funeral rituals, which are quite expensive, says Maxim Chernin. For example, these are African countries.

“In addition, this type of insurance is popular in countries with a large number of migrants from Asia and Africa, for example, in France, when a person, again for cultural and religious reasons, wants to be buried in his homeland in case of death. Repatriation of the deceased is a very costly undertaking,” adds the expert.

Note that the South African government in early May announced plans to abolish the "funeral deductions" that went in favor of local life insurers from social benefits, Bloomberg reported. Instead of deductions to insurance companies, the authorities plan to introduce state guarantees for paying for funerals, the agency writes.

Agents of life and death

In the Russian Federation, only one insurer is engaged in this type of business. For the rest, the main problem is finding a partner, since in Russia there is no federal network company for the provision of funeral services, explains Oleg Kiselev, president of the Renaissance Life Insurance Company.

“In each region there are many funeral companies, with each of which it is necessary to agree and formalize relations as a service provider in order to provide burial services within the framework of the insurance program. This requires high costs for the formation of a network of hundreds of partners throughout the country, as well as a physical presence in most settlements of each region of the country due to the need to make payments in the shortest possible time. Such a service will affect the high cost of the insurance program for end customers,” he explains. In addition, payments for the risk of "departure from life" under conventional life insurance programs are enough to cover the cost of a funeral, the insurer adds.

In addition, the most effective sales channel is the agency one, Rosgosstrakh Zhizni said. And this can also explain the inactivity of other insurers in the ritual market. Such policies can only be sold if you have an extensive agent network, and only a few of the "vital" companies have it, Maxim Chernin explains. “Now 85% of life insurance products are sold through the banking channel, and it is extremely problematic to sell funeral insurance in the mass segment through a retail bank,” the expert argues. “It requires more time to talk to the client, perhaps even getting the agent to get to know the client and their life situation.”

It is interesting that, in addition to insurance for the actual funeral, there are insurance programs for “cemetery property” on the Russian market. Thus, Uralsib Insurance has recently launched a box product for the insurance of tombstones, which covers the risks of fire, explosion, natural disasters, illegal actions, robbery, robbery, and also ... collisions with other objects.

The tragedy at the Khovansky cemetery, which happened in Moscow in early May, again drew public attention to the problems of the ritual market. The press again started talking about the need to reform the entire industry, about the criminal order that prevails in Russian cemeteries and graveyards. The authorities have been wanting to restore order in the funeral sphere for a long time, but so far it has not been possible. It is not the first year that a new law on burial has been developed, but there is still no unequivocal opinion on its content. One of the proposed measures is the introduction of compulsory ritual insurance, like CHI in health care or OSAGO for car owners. The initiative, taking into account Russian realities, seems fantastic, but, nevertheless, in many civilized countries, such schemes work to one degree or another. This was reported to the Korins.ru portal by the director of the department of external communications of JSC Military Memorial Company, following the results of an analysis of international practice, Ivan Shary.

In the United States, the average cost of a decent funeral, including paying for a place in a cemetery, is, according to the NFDA (National Funeral Association), about 7-8 thousand dollars. This is a fairly significant amount for the average American (the average salary is 2-4 thousand dollars a month). In order to save on funerals, Americans prefer to conclude life insurance contracts, while the amount of payments in some companies is up to 50,000). The specificity and benefit of the product is that the insurance payment to relatives can be spent not only on funeral services, but also for any other purpose. The downside is that relatives can pay for funeral services at a minimum, and squander the rest of the money in Las Vegas.

To prevent this from happening, you can purchase a “pre-need life insurance” policy, the payment from which goes entirely to a funeral or cremation. The person himself chooses a funeral home, determines all the details of the funeral and purchases a policy. The policy can be kept in a ritual company, and therefore the "ritual money" will never fall into the hands of relatives. The amount for which funeral services will be provided can be up to $15,000.

Canada

According to the BFS (Committee of Funeral Services) of Ontario in Canada, the average funeral costs about $7,400. Canadians solve the problem of savings for burial in the following way: they either deposit money into a target savings account or buy insurance. The policy is purchased either at a time or in installments (up to 10 years). The insurance only covers funeral expenses. The first installment is $500. If after that the insured suddenly dies, funeral services will still be provided. They can only be provided by a ritual company that has a license. All elements of the service are chosen by the customer. The signed contract contains the entire list of services. There are two types of contracts: guaranteed (if the insurance funds are not enough to provide services, they are provided anyway; if there is a surplus, it is paid to the heirs) and non-guaranteed (if the funds are not enough, the heir pays extra - cheap in terms of contributions, but a risky option, because if a person dies rapidly soon after acquiring insurance, relatives have to pay a lot). If for some reason the contract is terminated before death, then all money is returned, except for the administrative fee.

Australia

In Australia, funerals cost between $4,000 and $14,000. There are quite a few ways to pay for them here: from a pension fund, from bank savings, by prepaying funeral services (something like a “lifetime contract”), by buying funeral bonds, with the help of funeral insurance. All systems have their pros and cons.

Funeral insurance involves making monthly or twice a month insurance premiums. The insurance payment is from 5 to 15 thousand dollars.

The problem is that if fees are not fixed, they can increase once a year. For long lifespans, contributions can be up to 4 times the real cost of the funeral. And when you stop making contributions, the policy ceases to be valid and the money will be lost. Under such a system, in no case should you die in the first year or two after insurance. In addition, payments are not always made immediately after death and may not be in time for the funeral.

Due to strong criticism and a flood of lawsuits, since 2013, some companies have adopted a more flexible system whereby regular payments reduce fees, and the total contribution does not exceed the cost of the funeral.

Great Britain

In the UK, according to the Guardian, in 2014 the average funeral cost 5.5 thousand unts sterling, and one in five British families faced the difficulty of paying for them.

In the kingdom, unlike other Anglo-Saxon countries, there is a state funeral allowance. The allowance is up to 700 pounds and only for cremation. The nuance is that after receiving the inheritance, this amount must be returned to the state, unless the person had nothing but personal belongings, that is, in fact, he was a homeless person.

Therefore, you have to rely on yourself. The British prefer to pay for the funeral in the following ways: "lifetime contract" (pre-paid funeral plan), ritual insurance, payment from the bank account of the deceased, payment in installments, payment from the inheritance of the deceased. It is noteworthy that the law does not prohibit burying the deceased on his own, in a makeshift coffin in his own garden (although this can significantly reduce the value of the house upon subsequent sale).

Funeral insurance is paid at a time or in installments. As in Australia, it is impossible to suspend payments - otherwise the policy will be cancelled. If the amount of the payment is not enough to organize the burial, the relatives will have to pay extra out of their own pocket.

France

In 1993, the monopoly of municipal services on the provision of funeral services was abolished in France. Now each person chose his own ritual company.

In France, there are several options for paying for the funeral: debiting the amount from the account of the deceased, funeral at the expense of the municipality (if the deceased is insolvent, a place is allocated in the cemetery for 5 years), funeral at the expense of social benefits for the loss of a breadwinner (the first three months), at the expense of the National Treasury old age insurance. There is also a death insurance contract (un contrat assurance décès) and a lifetime contract (un contrat obsèques).

A death insurance contract allows either to receive an insurance payment, which, however, does not necessarily go to cover funeral expenses, or guarantees the provision of a set of funeral services. The insured person periodically makes contributions (the frequency is determined in the contract). To regulate ritual insurance in 2004, a special law was adopted, which obliges to strictly prescribe all the parameters in the contract. The insurer cannot change anything unilaterally. But the insured person, on the contrary, make changes at his own discretion.

Germany

In Germany, until 2003, there was a system of social benefits for burial (Das Sterbegeld), which were part of the compulsory health insurance package. Now these allowances are kept only by civil servants. The Germans were faced with the need to pay for their own funerals. The average cost of a funeral in Germany is between 6,000 and 8,000 euros.

It was these changes that pushed the ritual insurance system to develop. Understanding the inevitability of paying for funeral services out of their own pocket, the Germans began to actively conclude insurance contracts. Funeral insurance involves making regular contributions: the younger the person, the cheaper the policy. Accordingly, contributions for the elderly will be higher.

Spain

More than 20 million Spaniards are clients of funeral insurance companies. According to UNESPA (Spanish Funeral Association), 60% of funerals are paid for in this way. Demand for funeral insurance remains stable from year to year, and most of the insured are between 35 and 39 years of age.

The tradition of concluding ritual insurance contracts took root in the post-war years, especially among the villagers who migrated to the cities. The insurance was a guarantee that you would be buried in the cemetery in your native village, next to your ancestors. Then it became a family tradition. In addition, many, not wanting to lose money already spent, continue to pay contributions until their death, concluding a contract at a young age under the influence of tradition.

Another reason is that in small villages, the head of the local funeral home, as a rule, is also an insurance agent.

Monthly fees are approximately 8 euros per month.

The advantage of this system is that it guarantees the provision of the entire list of services starting from the first installment. However, it is the services that are provided, the money is not issued.

In 2011, the burial allowance was reduced in Poland. Now it is PLN 4,000, which in large cities does not cover even half of the costs. Insurance companies and banks took advantage of this.

In addition to funeral insurance, Poles can apply for special "funeral loans" in banks. The largest insurer in Poland is 4Life Direct, which specializes in servicing the elderly. The insurance program "My relatives" is focused specifically on funeral services. Contributions - 1 PLN per day.

Another insurance program at the "Post Bank" (Bank Pocztowy). The cheapest insurance option is PLN 17 per month. The total amount of the insurance payment is PLN 3,000. The most expensive program is PLN 53 for the amount of 10,000. Insurance premiums do not depend on age, but after 80 years old people are no longer insured. It is noteworthy that the policy is automatically terminated as soon as the insured turns 90 years old.

Despite the fact that Russian insurers are largely guided by Western experience, the situation with funeral insurance in our country remains ambiguous. On the one hand, such a practice exists and anyone can apply for an appropriate policy. But on the other hand, at the federal level, so far only one company offers customers such an opportunity. A few years ago, Rosgosstrakh launched the MARS ritual insurance program. In the event of an insured event, the program involves the provision of a set of funeral services or payment. Contributions are fixed and do not change due to inflation or changes in the exchange rate. Insurers say that there is a steady increase in interest in such a service. Another direction is corporate insurance, when a large company insures its employees, including in case of death. There is a similar practice, for example, in Sogaz.

The difficulties of ritual insurance in Russia lie in the fact that if the client chooses directly ritual services, and not payments, the insurer is obliged to redirect him to a ritual company with which a partnership agreement has been concluded. In the context of recurring scandals like the Khovan massacre, it is quite difficult to choose partners in this difficult market. In addition, each region, as a rule, has its own ritual organizations. In Russia, there is only one ritual organization on a federal scale - the Military Memorial Company. It is not surprising that VMK cooperates with both Sogaz and Rosgosstrakh.

The practice of funeral insurance abroad shows that in most countries, insurers and consumers themselves come to the need to develop this segment. Both those and others are pushed to this by low allowances for burials and the need to pay for everything on their own. In Russia, in the event of a person's death, it also guarantees a funeral allowance. Now it is 5277 rubles 28 kopecks. And this means that most of the funds for organizing a worthy farewell ceremony should be sought by families on their own. That is why ritual insurance has potential. The main thing would be the desire to change something in the Russian ritual market.

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Older people often set aside money to "depart to the other world" according to their religious and cultural traditions. The so-called "coffin" money is often kept at home along with ritual accessories. An alternative to them is ritual insurance.

Talking about death is one of the strongest taboos in our society. Elderly parents are afraid to discuss inheritance issues with their children. Most of them do not want to burden children with financial matters. Middle-aged people "drive" thoughts about the death of their parents from themselves. But money may be needed here and now. In difficult times, insurance can come to the rescue, but you should think about it in advance.

So, what is this - ritual insurance? This is a life insurance contract, which, if paid in full, is valid until the death of the Insured person. After that, prompt payment is made to the Beneficiary or funeral services are provided in relation to the Insured. In Rosgosstrakh, such a product is called MARS - mass funeral insurance. You can conclude such an insurance contract both in relation to yourself and your close relatives.

The inevitability of death is partly mitigated by the fact that we do not know when it will overtake us; in this uncertainty there is something of infinity and what we call eternity.

Jean La Bruyère

The relevance of ritual insurance is due to the following arguments:

• in the event of the death of the Insured person, relatives or close people are provided with targeted funds in a timely manner or ritual services are paid for;
• at the most difficult moment, relatives can be relieved of the independent organization of the funeral, the search for money and the collection of documents;
• children or close people can take care of their parents and provide them with a timely, worthy farewell, especially for those who live far away;
• for single people, it is extremely important to guarantee a decent funeral and protection from unscrupulous ritual agents.

The insurance indemnity payment option should be selected at the time of conclusion of the insurance contract. Accordingly, the payment can be in the form of a service, when within 1 hour from the moment the insurance company is informed about the death of the insured, the funeral company begins to collect documents and provides a guarantee list of funeral services for the sum insured. Another option is in the form of payment of money - within 24 hours from the moment of application, the Beneficiary receives prompt payment when contacting the insurance company.

Funeral insurance is primarily focused on the following categories of the population:

• elderly people who want to save children at the most difficult moment from solving financial issues for organizing a funeral;
• elderly people who need financial discipline in savings, regularly resetting their savings (for example, due to the need to provide material assistance to children);
• lonely pensioners who want to be sure of a worthy ceremony, the organization of which will fall on the shoulders of strangers, distant relatives;
• elderly people with dysfunctional relatives (alcoholics, drug addicts), worried about the safety of funds and their intended use;
• middle-aged people who are financially responsible for themselves, for elderly parents, for other elderly relatives;
• older people whose close relatives live in other regions, who will have less time and opportunities to resolve organizational issues;
• believers who follow the cultural religious tradition to have funds for a worthy burial ceremony;
• people with established disabilities, chronic diseases included in the list of exceptions who wish to insure life;
• seniors who wish to designate a Beneficiary for their savings in the event of death, providing targeting and guarantee of receipt of funds without registration of inheritance.

When concluding a funeral insurance contract, the Insured is offered a choice of several conditions. The first condition concerns the size of the sum insured, which is fixed and can take the following values: 15, 25, 50, 100, 150, 200 or 300 thousand rubles. The second condition is to decide on the option of paying the insurance premium: it can be paid at a time or in installments, and the amount of the contribution is determined depending on age, gender and the sum insured. And the last condition: choose the option of paying insurance compensation - in cash or services. The guaranteed list of services includes the following:

• departure of the ritual agent;
• registration of documents necessary for burial;
• transportation of the remains of the deceased to the cemetery or to the crematorium (at the choice of the customer);
• provision of a coffin (or urn) and other items necessary for burial;
• burial or cremation;
• providing a place in the cemetery on general conditions determined by the state;
• installation of a temporary headstone.

In the event that unspent funds remain during the provision of services from the guaranteed list, i.e. the sum insured has not been fully used, additional services can be provided:

• wreath;
• provision of a farewell hall;
• fence;
• grave cleaning;
• installation of a tombstone.

The terms of the insurance contract provide for one important limitation. If the death of the Insured person for any reason occurred in the first two years of the insurance contract, then the payment is made within the limits of paid insurance premiums. If the death occurred as a result of an accident or a plane crash, then the payment is made within the limits of 100% of the sum insured, or in the form of compensation for expenses incurred for burial, also within the limits of the sum insured. From the third year of the insurance contract, payment is made within the sum insured, or if the option is chosen in the form of services: funeral services provided by the funeral company or compensation for the costs incurred for burial to any person who incurred these costs.

The procedure for paying insurance compensation or providing services is as follows.

Insurance programs that provide for the conduct of a funeral ritual have been introduced in Russia relatively recently, and have differences in different insurance companies. One example of such programs is "MARS" (mass ritual insurance) from JSC "Rosgosstrakh". Her terms:

• You can insure yourself or another person aged 35-80 years.
• There are no restrictions on health reasons, a medical examination of the insured is not required, a policy without increasing coefficients can be issued by a disabled or terminally ill person.
• Depending on the volume of services provided under the insurance, the insured's orders regarding the organization of the funeral, the policy can cost 25-300 thousand rubles. You can deposit the entire amount at a time and get a discount or repay its cost in regular payments over several years, but no more than 15.
• Validity period: for life, services are provided in full in 2 years from the date of conclusion of the contract. During the first 2 years, only death in a traffic accident is considered an insured event, and the amount of payments does not exceed the amount of contributions. (There are insurance companies that insure people under 60 for up to 10 years, and those over 60 for life.)

• Services provided by the insurance are not provided in case of suicide of the insured.

• Within 3 days from the moment the relatives or authorized representatives of the insured person apply to the insurance company, they are paid the sum insured and other agreed services are provided. An insurance contract and a death certificate must be presented.

Who needs it?

All people are mortal, and no one knows exactly how much is allotted to him. Therefore, ritual insurance is in demand not only by the elderly. This service is also worth using:

• people who are single or do not have able-bodied relatives;
• terminally ill;
• those whose professional activities or hobbies are associated with increased danger to life;
• breadwinners, whose death will deprive the family of the main source of income.

Worthy Funeral Guarantee

Why is it better to take out insurance than save money?

• The money invested in the policy is protected from thieves, misuse by the insured himself, depreciation as a result of inflation.
• The heirs can spend the "funeral" money for other needs, the UK is legally obliged to fulfill the will of the insured.
• It is possible to receive payments in full, even if the cost of the policy was not fully repaid in installments (depending on the program).
• As a rule, the contract provides not only for compensation of expenses for the funeral, but also for the interaction of the UK with the employees of the mortuary, the funeral company, and the solution of all issues related to the organization of the ceremony. Such an opportunity is very important both for lonely people who have no one to see them off on their last journey, and for relatives stunned by grief.

The death of a loved one takes anyone by surprise. And when unexpected grief fell on my shoulders, I don’t want to think about the organizational measures related to the burial. The only desire is the opportunity to be alone with their grief.

The financial side also plays an important role, because there is not always the necessary amount for a funeral if everything happened unexpectedly. The most suitable option for solving problems with organizing a decent burial ceremony is ritual insurance.

Benefits of concluding a contract

Clients who have issued such a policy receive a lot of advantages:

• the possibility of the required amount - payments can be made one-time and in installments over a long period of time, and insurance guarantees are valid from the moment the contract is signed;
• independent choice of all necessary services (you can even decide on the number of wreaths);
• no need to undergo a medical examination;
• high quality of the services provided and compliance with all the requirements of the insured person - insurers cooperate with trusted funeral homes (the client can choose the company at his discretion);
• no need to draw up relevant documents - these activities are carried out by insurance agents;
• it is permissible to organize a funeral without the participation of relatives (for example, they are in another country);
• any person can issue a policy, including for their relatives;
• a guarantee of payment of monetary compensation - death still inevitably occurs.

Persons in need of a funeral insurance policy

Young people do not think that life can end at any moment. But older people, especially those suffering from serious illnesses, are concerned about how, for what money to organize their own funeral and who to hold responsible for. Many begin to save money, which is often not enough due to the low amount of the pension, despite.

Ritual insurance is necessary for those who have crossed the border of old age. This is especially true for lonely old people who do not have close relatives.

Another category that needs such a policy is pensioners whose children work abroad, since they will not be able to quickly arrive at home and quickly arrange a burial.

Validity and value of the contract

The funeral insurance contract is drawn up for a period of one to ten years.. Persons who have reached the age of sixty are entitled to a lifetime policy.

The price of the policy depends on various factors (chosen services, bureau, quality of grave goods, disability, chronic disease, etc.). Insurance coverage varies from twenty-five to three hundred thousand rubles. This is the amount that will be allocated for the funeral of the client.

If the insurance is paid immediately, the client will spend fifteen to twenty percent less than the amount that will be paid under the insurance. When paying for insurance in installments, the insurer is insured against the possibility of an insured event when the required amount is not paid in full. In this regard, the policy is equal to about one hundred and ten percent of the total amount.

Categories of customers that clearly benefit from insurance

By purchasing this policy, the following categories of clients of the insurance company will clearly benefit:

• those aged from eighteen to fifty-five (women) - sixty (men) years old, who are serious about their family and do not want to burden it with worries about their own funeral;
• those who have parents, grandparents and other relatives in old age and who want to take care of them;
• unable or unwilling to collect a large amount of money;
• single or living far from relatives;
• living in a quarrel with loved ones and worrying about who and to what extent will be puzzled by the organization of the funeral in the event of their death;
• elderly people surrounded by elderly relatives who do not have the strength and finances for a funeral.

What does the policy provide

Insurance covers a fairly large list of services. The insured person independently chooses the positions he needs. The main proposals include the following:

• the arrival of the ritual agent at the place specified in the contract;
• purchase of wreaths;
• providing ritual accessories (coffin, urn, costume, etc.);
• registration of necessary papers and documents;
• providing a place in the cemetery (on general terms);
• organization of the funeral service in the temple;
• delivery of the body to the cemetery or to the place of cremation;
• burial (cremation);
• installation of a temporary headstone.

The extended program includes expensive accessories for burial and an additional package of services:

• renting a hall where farewell to the deceased will take place;
• fencing of the burial place;
• installation of a permanent monument;
• regular care of the grave.

The policy not only includes a set of the listed services, but also involves the receipt of monetary compensation for the costs of burying the client by his relatives.

Assistance in the preparation of documents for the burial place

A place in the cemetery is provided to citizens on general terms, which are dictated by the state. Therefore, the insurance company is not responsible for the search and purchase of this object.

Many insurers undertake to arrange for obtaining a burial site on priority terms. This is due to the fact that funeral homes, revolving in this area, know what papers and where to submit in order to quickly achieve the required results.

Persons involved in the organization of funerals under a ritual insurance policy call the city cemeteries on their own or contact the organization of the one where the client himself wanted to be buried. Then they submit the required documents (stamp death certificate and certificate of the insurance company) for processing documents for a place in the cemetery.

Is it profitable?

The benefits of funeral insurance are obvious:

The contract officially signed between the parties gives a guarantee that the insurer will perform its services in a quality and timely manner. Otherwise, the company risks losing its license and losing the trust of customers. In turn, it will be impossible to control the actions of relatives involved in organizing the funeral, while the terms of the insurance contract will be fulfilled exactly with the wishes of the client.

Exclusion of the risk of facing the depreciation of the accumulated money and the situation when the bank ceases to operate (the savings may not be returned or returned partially). The insurance company restores the amount of the deposit if it has depreciated, as the premiums are subject to indexation.

How to act in case of an insured event

In the event of an insured event, the person specified in the contract (relative, social worker or other authorized person) is obliged to notify the insurance company. This should be done as early as possible so that the funeral can be organized according to the will of the deceased.

If for some reason the insurer was not notified or found out about the death of the client late, then the necessary documents should be submitted to him, indicating the conclusion of the insurance contract and the funeral services provided.

The money spent on the funeral will be returned according to the list of the client specified in the policy.