A funeral is expensive. The situation has worsened because the statutory health insurance companies no longer make a contribution. That is why many people provide for and take out death benefit insurance. This also makes sense, because otherwise the relatives would have to pay the funeral costs. But sometimes it can be that the sum from the death benefit insurance does not cover the cost of the funeral. Then all that remains is to take out a loan for the funeral expenses.
Alternatives to cover funeral expenses
Which alternatives to cover funeral expenses are actually possible depends on the need for money. Sometimes it is enough to use the overdraft facility on the checking account. However, this is only worthwhile if the account is managed to increase again within a short period of time, because such an overdraft facility is expensive. Interest rates can be in the double-digit range.
However, there are also people with poor credit ratings. For a loan it is necessary to have a good credit rating. If this person is missing or is even unemployed, there is no credit for the funeral costs. In such cases, all that remains is to go to the social services. After all, people have to be buried and lack the money to do so, because the deceased has not made provisions, he still has to go underground. The social services help in these special cases. They may even grant an interest-free loan.
The right precaution
In order not to put the relatives in the situation in the first place, to take a loan for the funeral costs, measures should be taken against it already in life. Death benefit insurance is not expensive. At least not if it is a conventional funeral. If you want more, you should choose a correspondingly higher insurance sum, so that everything is really covered. It would be a shame if the relatives or friends were left with negative memories just because the relatives or friends had to pay for their burial.