When a loved one dies, in addition to the emotional and sentimental side of things, one of the most immediate concerns for families is the financial aspect. An unforeseen event like this entails a cost which can be even higher if the deceased person did not make any plans. What should you do when a family member dies without life insurance? Stelae will show you how to proceed in these circumstances and suggest the best options to save costs.
What happens if someone dies without life insurance?
No one is obliged to take out life insurance, but we must be aware that if we pass away without life insurance, it will be other people who will have to bear the cost of our funeral plan.
The Spanish Civil Code is clear in this regard and establishes the following: "Funeral expenses proportional to the quality of the person and the customs of the locality must be paid, even if the deceased has left no assets, by those who in life would have been obliged to feed them". In other words, their relatives.
This situation is much more frequent than we think, since death without life insurance occurs in about 50% of cases. In this situation, we have already seen what happens if a person dies and does not have life insurance, so families who do not have sufficient financial resources should look for alternatives that are most affordable to them.
What to do when a family member dies without life insurance.
It is common to be unaware of what to do when a family member dies without life insurance. But it is important to know that we will have to carry out different steps that are not always easy or pleasant. Here’s how to proceed step by step.
- The first thing to do when a family member dies without insurance is to put your trust in a funeral company to take care of the first steps after their passing. This will make the process much easier and save additional costs.
- Then, you must choose the type of service (burial or cremation) and the kind of funeral. Depending on the funeral services chosen, costs can increase considerably .
Bearing all this in mind, it is important to be aware that a burial without funeral insurance can cost between 3,000 and 10,000 euros, depending on the place, the funeral company chosen and other factors. What are the most common expenses?
- Funeral home.
- Transfers.
- Coffin.
- Taxes.
- Floral ornamentation.
- Funeral.
- Burial or cremation costs.
However, when there are insufficient economic resources or when this unforeseen expense represents a major financial hit for families, the best thing to do when a family member dies without insurance is to economise as much as possible, looking for cheaper alternatives and eliminating the most costly elements.
The following advice will be useful when it comes to making a decision when a loved one dies without life insurance:
- Ask for a quote adapted to your budget and choose the funeral company that offers you the services with the best quality-price value.
- Remember that cremation is cheaper than burial due to several factors, so it is an option that helps to save costs in the event that our loved one dies without having funeral insurance.
- One way to save money is to avoid all funeral services that are not mandatory such as candles, floral arrangements and a ceremony.
- Choose a funeral company that takes care of all the paperwork, because if you do it all on your own, it will take much more time and will end up being more costly.
Bear in mind that if you are not certain that your loved one had a funeral plan or similar insurance to cover the costs of their death, you will have to pay those costs and then request the life cover insurance contract certificate to verify it. If you confirm that they were not the beneficiary of any life insurance, you will have to pay the full costs of their death.
Is it worth having life insurance?
In view of the consequences of not having life insurance, it is reasonable to say that taking out an insurance policy will save your family members significant expenses in the event of your death.
With basic life insurance, your family members will be covered for funeral services, transfers and basic administrative expenses.
The best option: direct cremation
Throughout this article, we have been asking ourselves what to do when a family member dies without insurance. The best option to save costs is direct cremation.
Expenses are minimal because the most basic funeral services are performed. A cremation without a wake or ceremony is chosen as it simplifies procedures and costs. Simplicity is paramount, making it the most economical alternative to a traditional funeral.
