Different forms of funeral insurance if you want to live in The Netherlands
- funeral insurance
In the Netherlands there are four different types of funeral insurance. The main difference is that some insurance companies pay out a sum of money in the event of death and others pay out in services. Read here before you make a choice about exactly what the differences are. You can then choose the funeral insurance that best suits your wishes.
Natura funeral insurance
A kind funeral insurance is an insurance that can really only be used for your funeral. The insurance pays out in services such as a coffin and the supervision by a funeral director. Another possibility is that the next of kin submit the bills and the costs of the funeral are paid from the insurance until the insured amount is reached.
Services only: a kind package funeral insurance
The in-kind package funeral insurance is an insurance in which only services are paid out. Think of the costs of the funeral or cremation, the cost of a service in a funeral home, a funeral coffin and funeral cards. Exactly which services these are is always laid down in the insurer's terms and conditions. With a kind package funeral insurance you know that the basic matters surrounding a funeral can always be arranged. Moreover, such a package often includes a funeral director who helps the next of kin arrange. With that, they can be unburdened.
A package insurance is also always fixed in value, the insurer promises that they will actually carry out the funeral as described in the policy conditions of your funeral insurance. This is no matter when a death occurs. It is possible that the premium also sometimes increases with the value of the package, this is called an indexed policy. On the other hand, it can sometimes also be that there is a profit sharing that increases the value of the funeral insurance but the premium does not.
Combination funeral insurance
With the combination funeral insurance you have a kind package funeral insurance that distributes in services but you have opted for an extra insured amount. In this way, the next of kin get the services out of the package but they also have a little more freedom of choice because of the extra amount. With some combination funeral insurances you can choose an amount that is paid directly to the next of kin when you die. Sometimes the same rules apply to this extra insured amount as with the in-kind sums of insurance and the next of kin can submit the bills afterwards. Because a package often does not cover everything, this extra amount of money can make sense. This allows you to arrange, for example, a nicer coffin or a flower arrangement, but also an advertisement or the tomb monument.
Capital funeral insurance ( best voor everbody)
The capital funeral insurance pays out a sum of money immediately when you die. This provides flexibility. The next of kin can decide for themselves what to do with the amount. This means that they can also spend it on things that have nothing to do with the funeral. With the capital funeral insurance, as with the in-kind sum insurance, you choose for which amount you want to insure yourself. If you think that a budget funeral suits you, you can choose a lower amount than if you wanted a luxury funeral.
The fact that the money is paid out immediately means that it can have consequences for inheritance tax that the survivors pay. You can find more information about this on the website of the tax authorities.