Borrow money for a funeral? If someone dies in your area, that’s bad enough. But if the deceased has never taken out a funeral insurance policy, a financial one can be added to the emotional blow. The costs for a funeral are recovered from the surviving relatives. You may not immediately know what the average funeral in the Netherlands costs, but that is quickly € 7,500. An amount that not everyone has. Now it will first be considered whether the amount can be taken from the inheritance, but if the deceased leaves nothing behind, then there is nothing to be gained.
How to prevent this?
To prevent your surviving relatives from being left behind with the costs of your funeral, it is wise to take out funeral insurance. You know that the funeral insurer will take care of your funeral to the last detail, leaving no outstanding costs for the surviving relatives. A funeral insurance policy will cost you at most a few euros per month and it will prevent a lot of financial misery.
If it turns out that you as a surviving relative do not have enough financial means to pay for the funeral, there is the possibility to borrow money for the funeral. We can already say that you cannot take out a mini loan to pay for a funeral. With a mini loan you borrow no more than € 1,500, and as we just wrote, a funeral can easily cost € 7,500.
There are two ways to fund the funeral by borrowing money:
Taking out a personal loan: a possibility to borrow money for a funeral is to take out a personal loan. You then borrow the required amount and then pay it off monthly.
Social Service: if you have no work and receive benefits, you can submit a request to borrow money via the Social Service. In that case, a cost estimate will be made by a funeral director. The Social Services must approve this budget and if this has been done then the required amount will be transferred to the funeral director. You can repay the borrowed money periodically to the Social Services or you can have a portion deducted from your benefit each month.
Take out funeral insurance
Although you can always borrow money if you do not have this to give your loved one a worthy goodbye, it is wise to take out a funeral insurance policy. With this you insure yourself against the costs of your funeral and this is a nice idea for yourself but certainly also for your relatives.