The average budget for funerals is 4,000 €. More and more people are signing a funeral contract, to prevent their relatives from having to bear these costs. But what exactly does a funeral contract cover? The explanations of Béatrice Mathurin, director marketing-communication and digital at the House of the funeral.
What is a funeral contract for?
This contract allows the subscriber to be certain that the money paid will be used only for the payment of his funeral. This type of contract is framed by the law of July 26, 2013, very little known to the general public, which clearly states that the sum is exclusively for funerals. This contract benefits from the same estate tax regime as traditional life insurance.
The subscriber has the choice between two types of contracts. Either a capital contract, which will serve only to raise the money necessary for the financing of his funeral; a benefit contract, which can only be distributed by funeral professionals.
How can we finance a funeral contract?
Once the subscriber has chosen between a capital contract or a benefit contract, there are two methods of financing that will make it possible to cover the quote made according to the subscriber's choice of services. The first is savings. There are several methods, in steps or in a single deposit of money up to the amount previously defined (or according to the estimate made with a funeral director, in case of contract funeral benefits). It is flexible and the product is adaptable according to savings capacities and lifestyle of each.
The second mode of financing is insurance. These are monthly contributions. They come to cover a risk and are calculated according to your age on the day of the subscription and according to the amount to cover. If, for example, I had an estimate of € 4,000 (in the case of a service contract), my contributions insured a risk of € 4,000. The medical examination is not required for this product, but a declaration on honor is required, and it is impossible to establish a contract after 75 years, unlike savings financing which has no age limit of subscription.
In both cases of contracts, the amount therefore depends on the services subject to a regulated estimate and the wills chosen.
Why subscribe?
It is an approach that is generally done by altruism, to protect his family and to protect them in case of death. But there is also a very personal, very intimate and often unconvincing question: Who will take care of me, how can my family say goodbye? "
The funeral contract in benefits is very little known and it is often summarized, in the head of the general public, a product for which one puts money aside. But the subscriber can issue wishes and choose his services beforehand, to have a dignified funeral and at the height of what he has been all his life.
Is not this a difficult step, psychologically, for subscribers?
We are working with the neurosciences and we are trying to make the funeral directors more accountable, so that they can set up their agencies so as to welcome families more warmly. At home, for example, our windows are completely transparent while often we see the storefronts overloaded plates or flowers ... But these are not impulse purchases, they do not need to be exposed in the shop window. . It is more reassuring for the client to see a human being behind the glass rather than all these funeral products. It is important to lighten and simplify these codes. We can not take away the sadness of the families, but on the other hand we can reduce their stress and their anxiety.
What is the typical profile of your subscribers?
There is not really a typical profile. The average age in funeral foresight is 66 years. On the other hand, we note that 70% of them are women. Why ? Because women are perhaps more sensitive to the provident process and also because they live longer than men.