Can you pay for your funeral before you die? Not a fun topic to discuss, however, one of the most important topics to help you protect your loved ones from the financial burdens when you die. This article will discuss what Pre-Need burial plans are vs. burial insurance policies.
What Is Pre-Need Burial Plans
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What is pre-need insurance? A pre-need burial plan is used to pay for the costs of a traditional funeral or a cremation.
How does a prepaid funeral plan work? You and the funeral home create a contract and make the arrangements for your final expenses. You make an upfront payment to the funeral home.
In fact, you work directly with the funeral home. You could make a lump sum payment or make monthly payments that could range anywhere from $50 – $150 dollars or more depending on the plan you choose. An average burial insurance premium is considerably less. (we will discuss later in this article)
Pre-Need Funeral Planning Checklist
What is a pre-need insurance arranger? Some of these expenses include the cemetery plot, your casket, music, flowers, embalming, gravesite, transportation fee including hearse or van use, opening the ground and all burial services.
Most importantly, why you should avoid the pre-need burial plan trap. There are more cons than you realize and as a senior specialist, I want to spare you and your family the heartache that I have seen too many times.
Are Pre-Need Burial Plans Worth It
Are pre-need burial policies a good idea? In short, NO! Here is a list of why…
The funeral directors could claim bankruptcy. How will you know that upon your death, that the costs have not increased? The money you have pre-paid may not cover all the expenses. Your family may still have to come out of pocket as there are no guarantees at all.
Most importantly, the funeral home you choose is now your beneficiary. Usually, it is your loved ones, spouse, adult children, etc.
Is is safe to Prepay a funeral?
What happens if the funeral home changes owners? What happens if you move out of state? These are just a few of the questions you must ask yourself before signing a contract with any funeral home.
Is Burial Insurance Worth It
Absolutely! When you apply for burial insurance as opposed to a pre-need burial plan, you are creating protection from the financial burden on your loved ones at the most difficult and emotional time of their lives.
Pre-need vs. burial insurance policy? Unlike pre-paid policies, your beneficiary receives the death benefit upon your death. The death benefit will cover all your final expenses we have listed above. There are no limitations, and if there is money left over, that is to do what they wish.
Prepaid Funeral plans Pros and Cons
One pro of a prepaid funeral plan is your family will not have to make those decisions.
A major con to prepaid funeral plans is you cannot change your mind if you want to be buried elsewhere. You and your funds will be committed and this limits you tremendously.
When you pass away your family will not receive a death benefit for your final expenses. If there are added costs they will have to come out of pocket for those costs, which may lead them to a financial burden and debt.
Pre-Need vs. Burial Insurance For My Parents
I get calls daily from clients asking me what is the best options for them to protect their family from the financial burden when their parents pass away.
Although many people think of pre-paid is the right answer, it truly is not.
In fact, prices today are not prices tomorrow. So if you start making payments on a pre-need plan and your mom or dad passes away, will you be able to come out of pocket for the rest of the final expense costs? Sadly, in my experience, most of my clients answer no.
Why should adult children get burial insurance policies for their parents? A burial insurance policy ensures that when your mom or dad passes away, the insurance company cuts you a check within a 24-48 hour period for the face amount.
What Is The Average Cost Of Burial Insurance
What effects burial insurance monthly premium cost? This is a great question. Burial insurance is based on your personal profile, age, medical health impairments. current prescriptions you are taking.
Also, keep in mind, these policies are Day One Level Benefits. This is key. This is what we strive for. We will ask you a comprehensive series of health and lifestyle questions to determine which type of policy you qualify for.
To give you an idea of cost per month (see below)
Nonsmoker, 60-year-old male in decent health, the monthly premium for 10k in coverage is:
Nonsmoker, 60-year-old female in decent health, the monthly premium for 10k in coverage is:
As you can see above, now is the time to get burial insurance for your parents. As you age and you do not lock into a policy, rates increase. Also, keep in mind as you age, medical conditions change and you may not qualify for day one level coverage. Ask us today how to avoid paying more!
About the Author
My name is Lisamarie Monaco. I am a Senior Specialist with InsuranceForBurial.com.
In fact, I am also your personal advisor. I am here to help you achieve your goals of protecting your loved ones from the financial burdens when you pass away.
I shop you to dozens of A+rated Excellent insurance carriers in one simple phone call. They call me the one-stop shopping machine!
My goal and passion are to give you all the information you need to make the best choices for you and your family. I am mindful of your budget and also mindful to give you the best product for you at this stage of life.
I will hold your hand throughout the entire process. Call me today to go over all your options, (855) 380-3300 ext. 2