Dutch Funeral insurance
The passing away of a loved one is an impactful happening. On top of that, funeral and related ceremonies are very expensive. In The Netherlands, a funeral costs on average 7500 euro. Since you do not want to cause your loved ones any additional burden in the case you pass away, it can be a good idea to buy a funeral insurance (Uitvaartverzekering in Dutch). The funeral insurer will not only cover the costs of the funeral, but will also support the family in arranging the practical details around the funeral. This means that the insurer will arrange the burial or cremation, the church service, the coffin, flowers and catering. Another advantage is that you can reduce the costs by 12% by buying an insurance instead of saving up to cover the costs yourself. That is why approximately 70% of the population in The Netherlands has a funeral insurance.
Do I really need funeral insurance?
There might be cases in which you wonder if it is really necessary to get a funeral insurance. For example, you can also decide to save up the money to cover the costs of the funeral yourself. The problem is that you might pass away before having saved the target amount. In this case, the financial burden will be passed on to your loved ones. Even if you managed to save up enough money for the funeral, then your family would still have to use their savings to cover the funeral costs up front. After all, they might not have access to your savings directly after your death. People who own a house also often wonder why they would need a funeral insurance. After all, the costs of the funeral could be covered with the selling of your house. But also in this case, the problem is that your family does not have direct access to this money. It might take months of even years before your house is sold, while the funeral has to be paid in two weeks.
In short, even when you have enough capital to pay for your funeral, it is still recommended to buy a funeral insurance. In this way, you can make sure that your family does not unexpectedly have to use their savings to pay for your funeral.
Choosing a funeral insurer: things to consider
Funeral insurers differ when it comes to the coverage level, premiums and conditions. By comparing the different options available, you can save considerable costs. Especially when you are dealing with a severe or chronical illness, it is advised to compare as much insurers as possible. There are websites that can help you comparing the different funeral insurances. There are several issues to take into consideration when choosing the insurer that is most appropriate for you.
The type of insurance
In case you opt for a “naturaverzekering”, you pay for a standard package of funeral services. The insurer is responsible for the payment to the undertaker. This option can be offered for a low price considering it is the same package for all those who are insured. On the other hand, “expenses only insurances” or “sommenverzekeringen” cover all the costs that are made for the funeral. A “kaptiaalverzekering” will simply transfer a certain amount of money that can be used for the funeral when the insured passes away. With this type of insurance, the loved ones can choose how the funeral will be arranged. This is especially useful for funerals outside of the Netherlands, because the family of the deceased is not limited in how they spend the money. If you prefer a combination of the aforementioned insurance types, you can opt for a “combinatieverzekering”.
The monthly funeral insurance premium
The monthly premium that you pay for a funeral insurance depends on several factors.
- The first aspect that determines your periodical funeral insurance costs is the amount you would like to insure for your funeral. Considering the high average price of Dutch funerals, it is important to make sure that the insured amount is not too low. Otherwise it can shift the financial burden to the loved ones of the deceased.
- Secondly, your date of birth influences the amount of your premium. The monthly premium becomes more expensive when the insured person is older. After all, the risk of premature death becomes higher as age increases.
- Thirdly, how long you pay premiums influences the monthly costs. You can determine the duration of your premium yourself when you get a funeral insurance. Often you can choose between a duration of 20 or 30 years, until you reach the age of 85, or you can pay the premium life-long.
- Finally, your monthly premium is determined by your health condition. When you buy funeral insurance, you will be asked to fill out a health questionnaire. Based on this information, the insurer can estimate if it is likely that the insured amount will have to be paid out earlier. In such a case, a higher premium can be expected.
Indexation of the funeral insurance premium
Just like other services and goods, the price of funerals becomes higher every year. The coverage amount should therefore be increased as well, through premium indexation. This implies an increase in the periodical premium.
Conditions of the funeral insurance
There are some other factors that you might want to take into consideration when choosing a funeral insurance. For example, with some insurance packages, children up to a certain age are also covered.
Insuring funerals outside of The Netherlands
It is possible to get an insurance when you want the funeral to take place in another country. In this case it is important to be aware that the funeral costs can become higher, for example because the body has to be transported to the country in question. The Dutch Embassy could also help you with arranging certain practical matters.
Buying funeral insurance
You can buy your funeral insurance online or by phone. You can also choose to hire an insurance consultant, which acts as an intermediary between the insurer and insured. This advisor can give you the possibility to spread your funeral insurance over different insurance companies. In this case, you are not bound by one specific insurer. The consultant can also give you suitable advise. It is recommended to compare the rates of different insurance advisors before consulting one.
Other practical information
- If someone deceased, it must be communicated to the council of the city in which the person passed away.
- Burials and cremations costs more in weekends and on national holidays.
- The municipality can cover the expenses of the funeral in case there are no financial means available.
- Insurers can charge consultancy costs for advising you about their different insurance packages.