Here are some ways to finance a funeral.

Preneed Insurance

Preneed Insurance is designed to cover the costs associated with your funeral and is set up directly with our funeral home. Preneed Insurance grows tax-free and is not counted as an asset, which is a major concern for families qualifying for assistance in a nursing home. Preneed Insurance companies offer several payment options to give you flexibility. Preneed Insurance is the only funding option that can be guaranteed with our funeral home so the family never has to pay more for our services and merchandise in the future. You can also set funds aside for other miscellaneous expenses like cemetery costs, newspaper costs for the obituary, death certificates, flowers, food for the lunch, and honorariums for clergy, organist and vocalist. These are called cash advances and cannot be guaranteed because they are not the funeral home’s charges. But they do need to be taken into account to arrive at the total cost of the funeral. Preneed insurance is the most common way to fund funerals and offers the most advantages. 

Annuities

Usually, annuities allow the money you pay to be invested. Interest is gained which, over time, increases the amount of money available to pay for your funeral. 

Life Insurance

Life Insurance is set up in many ways, such as Term or Whole-Life, to meet a wide variety of needs. Life Insurance is purchased to provide living expenses, fund a child's education, pay off the house or other loans, as well as to pay for funeral expenses. Many life insurance policies can be irrevocably assigned to a funeral home if a family is trying to qualify for assistance in a nursing home. This way the life insurance policy cannot be counted as an asset. 

Bank or Funeral Trust

A funeral trust is similar to a CD at the bank or a savings plan. The banks set the interest rate and the funds grow with interest. The earnings on a bank trust are taxed every year.

For more information on funeral planning, funeral funding, or guaranteed funeral plans, please call our office at 605-665-3644.