For those who are looking over life and burial insurance policies, one of the more interesting choices is prepaid burial insurance. This article is a helpful guide for those who are looking for more information on prepaid burial plans.
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What is Prepaid Burial Insurance?
Sometimes called pre-need life insurance, prepaid burial plans are specifically designed to pay for funeral services, cremation or the burial. This form of insurance pays the benefits to the funeral home itself which takes care of all the arrangements.
Generally speaking, this works by going to the funeral home and making the arrangements for your burial which includes the type of casket, cremation urn or concrete vault.
In addition, there are other expenses that range from the service itself to the headstone and the purchase of flowers for the event. Once all the expenses have been determined, the prepaid burial coverage is set which determines the monthly premiums.
How Does the Policy Work?
In essence, the funeral and burial plans are discussed with the funeral director so that all the wishes of the policy holder as well as their family are met. This means choosing a funeral home which offers the type of services that is desired at the prices that are reasonable and affordable.
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Once you have chosen the best funeral home to meet your needs, the next step is asking a series of questions to the funeral director to ensure that everyone will be comfortable with the funeral being planned.
Services: Here, you should ask about the services themselves from chapel to having one at the cemetery itself.
Casket, Urn or Concrete Vault: Another important factor is which vessel to choose for the deceased. A cremation urn is usually far cheaper than a casket or concrete vault, but you may not want a cremation service.
Charges & Fees: Funeral directors are usually quite good at explaining all the applicable charges and fees for their services, including headstones as major expenses and fees for the services such as flowers and the like.
Most funeral director will have pre-packaged plans for different prepaid funeral insurance policies, so be sure to go over each one to find the type that best fits your particular needs. Finally, the death benefits are usually paid straight to the funeral home which is different than traditional life insurance policies which name a family member as beneficiary.
Prepaid Burial Planning:
When it comes to your prepaid burial plans, the first step is meeting is going over the different packages that are available and usually found on the website of the funeral home. You can also call or visit the funeral home for brochures of their various pre-need funeral packages.
Funeral directors are used to meeting with people like you, many of whom will not make an immediate purchase if they decide to buy a prepaid burial package at all. So, do not feel like you are making a commitment when visiting a funeral home about a prepaid funeral plan.
Before you meet with the funeral director, write down the things you want as part of the funeral services. The more you have in mind, the better the funeral director can read your needs and provide a package that is best suited for what you want.
Here is a tip for you.
A good tip is to write down the things that you want included as well as any questions you might have of the funeral director. In addition, the funeral director will be familiar with the prepaid burial policy which provides the benefits to the funeral home so that everything is covered.
To save on prepaid burial plans, click here.
When is Prepaid Burial Plan a Burden?
While there are several advantages to having a prepaid burial plan with a funeral home, there are some issues that you will need to understand before making any commitments.
Funeral Home Goes Out of Business: A funeral home is just like any other business and subject to failing. This means that your prepaid policy may be worthless if the funeral home is not around to fulfill it.
Cover by the State: Some states require that a funeral home put a percentage of the money generated by the insurance into a trust which provides coverage in case the funeral home cannot fulfill its promises. You will need to know this before making any purchase.
Non-Refundable: Some funeral homes provide a full refund if you change your mind, some do not. Be sure before you buy if they offer a refund.
Lack of Transfer: What happens if you should move out of the area? While transfers are common, they often come with an additional cost.
You will want to thoroughly research these potential issues before you make your choice about whether having prepaid burial insurance is right for your needs.
What Should I Do?
You will want to compare prepaid funeral policies with other options to see which particular choice is right for you. There is general burial insurance along with term and whole life insurance policies that offer other means of paying for your funeral and providing additional options as well.
The advantage of a prepaid burial plan is that your funeral services, casket, headstone and arrangements are all set in advance. However, there are many factors that can alter such plans and make this form of burial payment untenable.
Standard burial insurance where the money is directed to the member of the family does not offer the planning of the funeral services. However, a big advantage is that the money is transferable to any funeral home in case the policy holder has moved or the funeral home has gone out of business. This can be advantageous to policy holders, particularly if they are still relatively young.
Life insurance policies are generally more expensive, especially in terms of your own age and health. However, they are usable by the beneficiary for any funeral home and may provide considerably more money to cover debts and even leave behind a legacy.
While prepaid burial plans are quite popular, they are not the only option at your disposal. Be sure to check out all of the options available before making your final decision.