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Benefits
of Pre-planning:
1.
Relieve your family from the emotional burden of making the
arrangements.
2.
Protect your loved ones from the financial burden of paying for
the arrangements by pre-funding with preneed insurance
& annuities.
3.
Pre-planning and pre-funding give you the assurance and peace of
mind that every detail has been taken care of just the way you
want.
Q.
What Exactly is Preneed Insurance?
A.
Preneed funeral insurance
is an insurance policy whose benefits are assigned to cover the
cost of a pre-arranged funeral contract. Funeral contracts
typically include standard funeral home services, funeral
merchandise, church services and even burial services and
merchandise. The purpose of preneed funeral insurance is to set
aside funds before the need arises, thereby protecting your
loved ones and your financial assets by "locking in"
on today's costs, when your funeral home has guaranteed the
price of your funeral pre-arrangement
Q.
What's the Difference Between a Standard Life
Insurance Policy and Preneed Funeral Insurance; Aren't They
Basically the Same Thing?
A. The
primary distinction actually has to do with "intended
purpose." Traditional life insurance is intended to provide
for a broad range of your survivors' future financial needs –
provide income, cover education costs, pay off a mortgage,
and the like. Preneed funeral insurance, on the other
hand, is specifically intended to cover only the predetermined
costs of a pre-arranged funeral contract.
In addition, there are several other important differences
between the two types of coverage. For example:
With regard to benefit distribution at the time of death,
preneed funeral insurance is payable immediately to the beneficiary
(generally the funeral home) upon the policyholder's
death; traditional life insurance policy benefit distributions
may require several weeks to be paid by the insurance
company.
Q.
Do I Actually Need Preneed Funeral Insurance; Can't I Simply Use
Some Other Source of Funding?
A. Preneed
funeral insurance is a choice, not a requirement.
However, it is important to understand the added value of
preneed funeral insurance over other sources of funding, such as
savings accounts, trusts and final expense insurance.
First, preneed funeral insurance is tied directly to the costs
of a pre-arranged funeral. All of the services and
merchandise that you select will be completely covered by your insurance
if your funeral home has guaranteed the price of your funeral.
Second, there is no tax liability on the death benefit to
your surviving family members.
Third, the benefit of your preneed funeral insurance is
payable immediately to the funeral home at the time of
your death.
Fourth, there is little or no underwriting required to apply
for a preneed policy. Decision is typically made within minutes.
Q.
How Much Does Preneed Funeral Insurance Cost?
A. Your
cost depends on the cost of the services and goods you
select for your funeral during the preplanning process. In
other words, you control the costs based on what you choose.
As it relates to your insurance payments, you can make a single
premium payment and be done with it, or you can spread your
payments out over several years. Again, the choice and the control
are all yours.
Q.
Can I Pre-fund My Funeral Without Preplanning it?
A. At
this time, the most effective way to predetermine the cost
of your funeral and, therefore, the amount of insurance you
will need, is to work with a committed and caring funeral
home professional to identify the specific services and
merchandise you will want in the future.
Conversely, if you only decide to preplan your funeral, it is
also in your own best interest to weigh the financial and
emotional advantages of pre-funding your arrangements. If
desired, your funeral home professional can guide you through
the entire process.
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