Planning Ahead
No one wants to think about death....
Yet, inevitably a family death event will happen for each of us. This reality then, makes planning ahead and exploring what Tanzyus Logan has to offer your family a top priority.
Planning Ahead means that decisions are made with a clear mind and set purpose without the extreme stress of an immediate need.
Funeral arrangements are usually one of the most neglected areas of financial planning. Studies have shown that families who have taken the time to plan ahead, spend much less than those who are forced to make an immediate, emotional expense.
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Stay on target. Save Money. Plan Ahead.
Putting the Pieces Together
For Many,... paying over time is a good option.
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:
1. An Irrevocably Assigned Insurance-based plan
2. A Trust plan
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).
The CPC Designation
Be Sure to look for this designation whenever You Choose to Preplan.
Jon A. Tanzyus, Funeral Director and Partner of Tanzyus Logan Funeral Service and Care, is a Certified Preplanning Consultant, and leads our Pre-planning Services staff to families.
A Certified Preplanning Consultant is one who belongs to a premier group of professionals recognized nationally as those who exemplify the highest standards of excellence in service to families. These knowledgeable individuals are committed to providing ethical and caring, advance planning services.
Cause and Effect
― Celso Cukierkorn
“In life’s journey, having the ability to predict the future gives us an unfair advantage. If we can understand the laws of cause and effect, anyone can predict the future. What we do today leads us to tomorrow’s destination. Why does this simple truth seem to be difficult for most people to understand?”