No financial headaches with funeral insurance

Advice

Funerals becoming more expensive

Prices for funerals have increased by 35% in the past ten years. According to Uitvaartunie Vlaanderen, this can largely be explained by the tax increases by the federal and regional authorities. In the last decade the tariffs for concessions have risen, as have the funeral expenses for municipalities and the taxes regarding energy and the environment. In addition, the consumer has become more demanding and these requirements contribute to a higher cost for a funeral.

How to avoid unexpected funeral costs?

You can prepare yourself and your family for the high costs of a funeral by taking out funeral insurance in advance. By paying a small monthly premium, you can put aside a larger amount in the long term. An insurance has the advantage that your capital is protected and is only used for your funeral.

Although you take out insurance on your own life, you do this mainly for your next of kin. In this way they are not confronted with the high costs of your funeral.

Is funeral insurance fiscally interesting?

The answer to this question is not an obvious one, as different factors are in play (in Belgium). First of all, it is important to make a distinction between in-kind and capital insurances. The premiums for in-kind insurance do not, by definition, provide you with a tax benefit. That much is clear.

The premiums you pay for a funeral insurance that guarantees an insured capital can, under certain conditions, be fiscally attractive. In order to be able to recuperate 30 to 40% of the paid premium, you must take out the funeral insurance contract before your 65th birthday. In addition, your spouse or a second-degree relative must be the beneficiary of the insurance contract.


Be advised! In some cases it makes little sense to mention the premium on your tax declaration, for example if your income exceed a certain amount or if your tax benefit is already maximised by a home loan or other life insurance policy. Keep in mind that if you state these insurance premiums on your tax form, the tax authorities will deduct 10% from the insured end capital. But this final tax usually does not outweigh the tax benefit.

Conclusion

A funeral insurance saves you a lot of financial headaches at the moment of the death of a loved one. At the fiscal level, funeral insurance is mainly tailor-made. Cares Assistance can help you make the right choice. Make an appointment now.

Marnic Vandenbroucke