This term Funeral Insurance is actually a misnomer; your funeral is actually funded with an insurance product. There are three primary ways to pay for your funeral;
A funeral trust, a life insurance policy or a savings account that a family member can access at the time of need. Most importantly you need to advise your family that you have made such plans. If they don’t know, they may end up paying for these services all over. If you chose to go with a funeral trust, this can be
If you chose to go with a funeral trust, this can be set up with a bank or a funeral home. Be sure that you specify what type of funeral you want. Pay particular detail to travel expenses or any other special requirements you might have. Make sure that each service you want is listed or you may not receive it.
Life Insurance should be purchased through a licensed producer (agent). There are reputable providers who work in partnership with established companies or funeral homes. You can opt to make a loved one the beneficiary of the policy and name which funeral home that will provide services.
Be sure that you list all merchandise and services that you desire for your funeral. You funeral plan should include a statement of intent regarding preneed funeral arrangements. This will allow your survivors to make any changes as needed. It also protects you in that something is not done that was not part of your wishes. Example; being cremated if you are adamantly opposed to cremation! If you or your loved one is age 65 or over the producer (agent) must notify you in writing within 24 hours before an appointment.
A funeral planning guide should involve a reliable insurance product to fund your funeral. This is a great way to fund your funeral in the future. A good funeral planning guide will advise you of two types of pre-need or prearrangement funeral plans. One is plan that is placed in a trust, the other is funded with an insurance product. The later is a better way to fund your funeral.
Have you ever imagined what your funeral would be like? What kind of service there would be? Or even what kind of casket you would prefer? Morbid? Perhaps. Unreasonable? Not at all. There are plenty of reasons to preplan and, if possible, prepay your final arrangements long before the need arises. In fact, a product called “preneed” insurance, also known as burial or funeral insurance, is intended for just that purpose.
If you have a loved one in a nursing homes or adult care facility make sure you have designated who has fiduciary responsibility! Most nursing homes, adult day care and hospices have an administrator who is charged with caring for your loved ones, finances if they are not capable to do so. It is the administrators job to protect your loved one from unscrupulous salesmen who may be unethical.
By law, no funeral insurance plan can reduce or diminish benefits in any way. This is the best way to ensure that when the service is needed it will keep up with inflation. Most funeral homes have pre-need counselors who are licensed insurance agents who can sell you these products. By law anyone who attempts to sell you an insurance policy to fund your funeral must give you a price list- It’s the law!
This is a kinder gentler way to take care of the inevitable. The most obvious advantages are you have the choice, of selection, type of merchandise and services. You can make monthly payments instead of having to pay a huge lump sum at the time of need. More importantly, your loved ones aren’t left behind to agonize over what you would have wanted.