Our company helps people plan and fund for end of life events, and as such this topic, Types of Insurance, is narrowed toward the best type of insurance for funding your funeral expenses. Funeral expenses are all expenses related to the funeral home, cemetery, or separate Celebration of Life events.
For the purposes of funding your funeral, there are two ideal policies, which can be explored.
- Pre-need policy through an insurance company, offered at most funeral homes. With a pre-need policy, there are agreements made between the funeral home of choice to provide that which you, the consumer, select. The funeral Goods and Services are often guaranteed not to increase in cost over the years, which can be a great benefit to the consumer. Often these plans are regulated by the State and audited each year. Ask us about your state regulations and how they apply to pre-need funding. These policies are usually irrevocably assigned to the Funeral Home and are not counted as an asset for Medicaid spend down.
- Irrevocable Funeral Trust policies are funding vehicles, where money funds the policy, and the policy is placed in an Irrevocable Funeral Trust, but it is not attached to a funeral provider. This allows the policy to be taken to any funeral provider at time of death for the purpose of funding the funeral expenses. These funds can only be used for the deceased’s funeral and cemetery expenses and any excess funds are returned to the Estate of the Insured.
- While any life insurance policy can be considered to pay for expenses at death, the two policies above achieve the goal in a more streamlined manner. Because specific funds are placed aside for this event, the funeral provider is paid promptly upon the claim being placed, usually within 24 to 48 hours.
For additional information, click below for your FREE planning guide offered exclusively by Future Planning Services.
Call us for your no obligation consultation to discuss which policy is right for you.
Future Planning Services
P. O. Box 51807
Durham, NC 27717