Pre-need Funeral Insurance

Preneed funeral insurance is very different from burial insurance and this article will explain to you the difference to see what works best for you.

Preneed funeral insurance is an insurance policy that covers your funeral services and burial or cremation and the plan is set up directly with the funeral home you decide to use. We will highlight the important points of preneed funeral insurance below.

PROS

• Plan is set up directly with the funeral home and all expenses and costs are planned out according to the way you choose.
• Takes the guesswork out of your family/loved ones to decide what is needed down the road when one passes away.
• The plan is straightforward and covers all the things you want when you are being sent off.
• Purchased directly with the funeral home and the cost of guaranteed services will remain the same (non-guaranteed services may need to be supplemented, you will need to confirm with the funeral home)

CONS

• Plans can be very expensive depending on the amount of coverage you want to take care of at the funeral home
• Once the plan starts, you are committed and they don’t offer any types of refunds. It is also not transferable to another family member.
• Money is locked up with the funeral homes and you may not end up using the insurance until further down the road.
• No Flexibility with the benefits for your family. Should they want to change anything with the planning of the funeral, there is not much they can do.
• A funeral home is listed as the beneficiary and not your family, all proceeds of the insurance policy will go to the funeral home. The benefits are not portable.

Pre-need funeral expense insurance can make sense but it depends on your goal and needs. A burial insurance policy can provide more coverage and flexibility to your family but It would be best to speak to an experienced advisor to help guide you along the way.