PRENEED FUNERAL & BURIAL CONTRACTS – WHAT YOU NEED TO KNOW
There are many good reasons for planning a funeral in advance. The key advantage is that you (or the person you are helping to plan) get to decide the type of funeral rather than leaving it to someone else to make the choices. Preplanning can help you control funeral costs by allowing you to set a budget and stick to it. You’ll have time to decide what products and services are most important to you and avoid making emotional purchases. For example, the type of casket may not be a big concern for you, so you select a basic model rather than something more ornate.
LEARN MORE ABOUT FUNERAL COSTS - The Basics of Preneed Funeral Contracts.
An important aspect of preplanning can be making sure there are funds set aside to cover the cost of your funeral or burial. The question is, what is the best way to do that? There are many popular methods, but one we see a lot about is preneed funeral contracts.
What’s the difference between Preneed and Preplanning?As you explore your options for planning a funeral, you’ll find a whole new set of terms that apply to your choices. The term preneed, for example, means a type of arrangement where you pay for funeral products and services in advance. You enter into a preneed contract with a particular funeral provider, such as a funeral home or cremation service. You may pay the provider directly in a one-time payment or under an installment payment plan. Another option is to secure the contract with a preneed insurance policy, a specific type of life insurance. When you preplan, you decide the type of funeral or burial you want, what kind of ceremony you prefer, and the products you would like. Your plan can be as simple or as detailed as you like. You leave the instructions with your loved ones, and they take care of the details when the time comes. There is no payment required to preplan. Of course, it is best to have funds set aside for your family to use, but you don’t have to do this through a contract with a funeral provider. You can set aside cash in a funeral trust or payable-on-death bank account. Final expense insurance is another good way to cover your expected funeral costs. Preneed funeral contracts appeal to some people because they lock in the price of the funeral products and services they select at current prices. To lock in the price, though, you commit to a contract and fund the contract. Many people choose to pre-purchase only their cemetery property—a plot or crypt (a preneed burial plan). Others contract in advance for full funeral and burial services along with merchandise. Even though one of the main goals is to control the price of these items, not all contracts provide a price guarantee. You should read the fine print carefully.
Two popular methods of funding preneed funeral contracts are funeral trusts and funeral insurance. By establishing a funeral trust or purchasing funeral insurance, you are placing the funds with a third-party (i.e., a trustee or an insurance company) who will manage the money and use it to pay the designated providers at the time of your funeral. Preneed funeral contracts can work well for many people.
There are many good reasons to enter into a prepaid contract for funeral goods and services in advance:
There are many good reasons for planning a funeral in advance. The key advantage is that you (or the person you are helping to plan) get to decide the type of funeral rather than leaving it to someone else to make the choices. Preplanning can help you control funeral costs by allowing you to set a budget and stick to it. You’ll have time to decide what products and services are most important to you and avoid making emotional purchases. For example, the type of casket may not be a big concern for you, so you select a basic model rather than something more ornate.
LEARN MORE ABOUT FUNERAL COSTS - The Basics of Preneed Funeral Contracts.
An important aspect of preplanning can be making sure there are funds set aside to cover the cost of your funeral or burial. The question is, what is the best way to do that? There are many popular methods, but one we see a lot about is preneed funeral contracts.
What’s the difference between Preneed and Preplanning?As you explore your options for planning a funeral, you’ll find a whole new set of terms that apply to your choices. The term preneed, for example, means a type of arrangement where you pay for funeral products and services in advance. You enter into a preneed contract with a particular funeral provider, such as a funeral home or cremation service. You may pay the provider directly in a one-time payment or under an installment payment plan. Another option is to secure the contract with a preneed insurance policy, a specific type of life insurance. When you preplan, you decide the type of funeral or burial you want, what kind of ceremony you prefer, and the products you would like. Your plan can be as simple or as detailed as you like. You leave the instructions with your loved ones, and they take care of the details when the time comes. There is no payment required to preplan. Of course, it is best to have funds set aside for your family to use, but you don’t have to do this through a contract with a funeral provider. You can set aside cash in a funeral trust or payable-on-death bank account. Final expense insurance is another good way to cover your expected funeral costs. Preneed funeral contracts appeal to some people because they lock in the price of the funeral products and services they select at current prices. To lock in the price, though, you commit to a contract and fund the contract. Many people choose to pre-purchase only their cemetery property—a plot or crypt (a preneed burial plan). Others contract in advance for full funeral and burial services along with merchandise. Even though one of the main goals is to control the price of these items, not all contracts provide a price guarantee. You should read the fine print carefully.
Two popular methods of funding preneed funeral contracts are funeral trusts and funeral insurance. By establishing a funeral trust or purchasing funeral insurance, you are placing the funds with a third-party (i.e., a trustee or an insurance company) who will manage the money and use it to pay the designated providers at the time of your funeral. Preneed funeral contracts can work well for many people.
There are many good reasons to enter into a prepaid contract for funeral goods and services in advance:
- If you have already selected a funeral home or cemetery, it may make sense to pay in advance. If, for example, you will be buried where other family members are buried, it may make sense to pre-purchase an adjoining grave or mausoleum space. Buying in advance ensures you get the location you want and locks in the price.
- Many providers will guarantee to deliver services and merchandise at today’s prices if you enter into a preneed funeral or burial agreement and pay for it in advance.
- Pre-paying ensures that an amount you consider appropriate will be earmarked for the funeral.
- Depending on your financial situation, pre-funding can help you manage the value of your assets. For example, funeral insurance is not a personal asset in determining eligibility for assistance from social service programs, such as Medicaid.
- Most states have laws requiring that providers set aside a certain percentage of prepayments in a trust account. The trusting requirement can vary from 30% to 100%. The provider manages the trust. You should be cautious about making prepayments directly to your provider if the purchased items will not be delivered immediately.
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CHAPLAIN JOE & CHAPLAIN ERICA recommends Elliott James or Alexandra Salsberry (who also speaks Spanish)
as your preneed advisors.
We preplanned our final needs thru them.
Give one of them a call and mention that we recommended you!
as your preneed advisors.
We preplanned our final needs thru them.
Give one of them a call and mention that we recommended you!