3 tips before paying for your funeral in advance

3 tips before paying for your funeral in advance

A recent survey by the Funeral and Memorial Information Council found that nearly 70% of adults over 40 say they would rather have their own funeral. However, only 17% did. If you're like most adults, you agree that prepaid funeral plan about the long-term benefits to you and your family. Planning ahead can be an amazing gift of love for those you care about when done properly. With that in mind, here are some questions you might want to consider while working with a licensed funeral planning specialist.

1. How safe will my funeral funds be?

Your funds will not go directly to the funeral home. For your safety, the law requires that your payments be paid to a third-party insurance company or trust account to manage the funds. For example, don't give a blank check to any agent. Your payments should go directly to a third party and not to an individual.Before signing anything, look at the security, stability and performance of an insurance company or funeral trust account. Do they have a good rating from an independent credit rating company? Do they have a solid financial outlook? What is their reputation? Does it seem likely that they will do business for years to come? You do not want to commit to a subscribed funeral insurance policy or a funeral trust unless you are sure that your funds will be in safe hands. If the available financing options are not available to you, ask for an alternative option.

2. Can I qualify for a prepaid funeral plan if I have health issues?

There are two standard methods of paying in advance for a funeral: a funeral insurance policy or a funeral trust.Most funerals shelve require you to answer a few basic health questions (funeral funds don't ask health questions). Your answers to health questions will determine the type of coverage you qualify for. In most cases, your medical condition will not prevent you from setting up a prepaid funeral plan that is right for your situation.Other plans offer limited insurance for accidental death only, but after a period, the policy turns into a fully insured plan that covers the full cost of your plan if you die before payments are completed. Another possible option is a fully insured policy that covers your plan 100% from day one and requires you to meet several basic health qualifications.

3. Can I cancel my funeral insurance policy or trust?

When planning your funeral expenses in advance, it is important to understand the terms of your contract if you decide to cancel later. There is an initial notice period for funeral insurance policies in most states. During this time, you may cancel your funeral policy for a full refund within a specified period, usually between 3 and 30 days. Once the cancellation period has passed, your ability to cancel depends on whether the policy is canceled or irrevocable. With a revocable policy, you can cancel your plan at any time to receive the monetary value of the policy. Please note that depending on the type of policy you have, you may receive less than the amount paid. It is a good idea to speak with a customer service representative at an insurance company to understand all of your options before canceling your plan.With an irrevocable policy, you cannot cancel a plan. A non-recurring funeral plan is typically used when an individual wants to spend Medicaid qualifying funds by creating Medicaid-exempt assets. In essence, Medicaid does not consider an irrevocable plan part of a person's computer assets. To learn more about how irrevocable plans work, visit Medicaid Qualification Rules and How to Spend a Funeral Plan you can also set a funeral trust as an irrevocable plan to help you qualify for Medicaid. However, trust revocations are a little different. If you choose to cancel a revoked trust, the amount of your refund will vary from state to state. In some states a canceled trust may be subject to penalties and the funeral home may be entitled to retain a certain percentage of the trust fund. In other countries, the beneficiary is entitled to 100% return on principal and interest. Always talk to your funeral provider or customer service representative before canceling your trust so you have all the information you need to make a good financial decision.

Prepaid plan and prepare your prepaid funeral slowly, what we would like to tell you is to take care of the above items before deciding where to pay for the funeral in advance. You should be careful about what package you choose and what it will contain.

Last updated:9/28/2019 3:48:01 PM
Dorin Mensona

Dorin Mensona

Passionate about writing and helping businesses with their online presence.


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