Planning Ahead

Planning ahead could give you the opportunity to pay it out over a few years. 

There are many rules and regulations regarding prearranged funeral contracts.

There are currently two legally distinct plans available for prearranged funerals today:

The key to the best, financially secure plan is one that is “irrevocably assigned” and tied to a specific funeral provider. The funeral provider then, in turn, “guarantees” the plan and the majority of the funeral fees and future costs. (Cash Advance items are not guaranteed, but can be put in as “allowances”).

Most final expense plans are not irrevocably assigned and guarantee you nothing.  Should you end up in long term care, these type of plans usually need to be “cashed in” and you could lose a great deal of your investment.    

Basic life insurance that is not irrevocably assigned is considered an asset and can be subject to tax liabilities (usually long term care).  Money invested in Trust plans, are controlled by the Funeral Provider that owns the Trust and the preneed assignment. This “ownership” allows that Funeral Provider to access the funds for certain allowable “fees”.  Should you decide to change your mind or change your choice of funeral provider, there could be a loss to you. This is an especially good instance to be sure and read the fine print, making absolutely sure of what you are getting in your contract.   

If you already have a paid in full "trust" plan, and decide to change funeral providers after a death occurs, the funeral provider who actually services the funeral can request the funds from your funeral trust from the original provider listed.  The final funeral provider does not have to give you what was "listed" as funeral choices, however the funds can be used like a deposit on the funeral contract with the final provider.  Your family would need to make up any difference in funds if there was a remaining gap in final choices.

 
Money invested in insurance-based plans have YOU (the insured) retain the “ownership” and mobility of where and who provides the services, with guaranteed payouts to the final provider. 

A Trust plan that is not paid in full at the time of death requires the family to pay the remaining balance immediately.  The strain of an immediate need does not give your family much freedom.   

Consider taking advantage of one of our insured plans.   You may qualify for this extended timeframe and your plan would be tied to insurance as well, giving your family an additional benefit should you die before it’s paid in full. (all insurance has a 2-year contestability today).