Have you considered preplanning a funeral? Whether you have or not, it may be something that’s right for you (click here to learn What Preplanning Is). There are many things to think about when it comes to preplanning a funeral, but the benefits are something that’s easy to discuss. Today we’ll go over the 7 substantial benefits of preplanning.
Peace of Mind
Leaving a written guide for your family and knowing that adequate funds have been set aside in an irrevocable agreement, relieves your survivors of emotional and financial worry.
Protection From Nursing Home Costs
Unlike other investments that you own (including cash value life insurance), the dollars you place into a correctly structured final expense plan will not count as an asset if you enter a nursing home.* 1 out of every 2 people 65 or over will need long term health care.
*Of course, some restrictions and exceptions apply, as every family faces different circumstances. All benefits may not be available due to age or health inquiring now, before some serious health or other problems arise, gives you the widest range of benefits. The above should not be considered as a tax or legal advice. We will be glad to meet with you and your attorney to address any questions that you or they may have.
Full Control of Funeral
Before or after a death occurs, you and your family retain the right to change funeral homes and the services you have selected.
Unlike methods used in the past for pre-paid funeral services, no one can make any withdrawal of your funds. Once the irrevocable agreement is established, the only way the funds can be released is with a certified death certificate and a signed copy of the funeral bill.
Any extra dollars, not spent for your funeral services, may be sent to your family directly from the insurance company. (If you have established your pre-funding at least 5 years BEFORE the need for a county medical assistance arises.)
No Probate or Delay
When you use an irrevocably assigned life insurance or annuity to hold your funeral dollars, the funds are immediately available and do not have to pass through probate.
Favorable Tax Treatment
Every year (or month, depending on the company) the benefit of your policy will increase. These increases are not subject to income tax during your lifetime. At the time of death, life insurance proceeds pass income tax free to your beneficiary. Annuity interest earnings will be subject to income tax for your beneficiary, but the principal will not.
Now that you know the 7 substantial benefits of preplanning a funeral, it’s time to start a conversation. There’s no pressure to make a final decision yet, but we are here to help answer any questions you may have. Start by filling out our simple preplanning form or give us a call today. We are ready to guide you through the preplanning process.