Preplanning and Funding a Funeral

Preplanning and Funding a Funeral

A major reason people pre-plan and pre-fund their funerals is so their loved ones do not have to go through the emotional and financial burden of paying for the funeral. Aside from that, pre-funding a funeral, paying for a funeral before the need arises, will lock in rates so that, as costs increase, you will not pay the inflated cost.

Funeral Insurance

Funeral Insurance, often referred to as pre-need insurance, is life insurance bought specifically to pay for final expenses, such as the funeral service, caskets, flowers, etc. Usually, the funeral home is the beneficiary of the policy, up to a certain amount, through a trust. Any balance goes to another named beneficiary.

Unlike other types of insurance, funeral insurance prepares for an inevitable outcome as opposed to managing risk. With this coverage, you can plan many details of your funeral, including specific products and services that add meaning to the funeral, and pay for them in advance.

Funeral preplanning is a highly personal decision. There is no typical insurance plan. Rather, choose the products and services you prefer. An insurance agent or funeral director (in many instances, they are one and the same) writes a policy that covers your choices.

October 19, 2017