Information you need to know before planning to use insurance to pay for your funeral
courtesy of Kris Luebke & Mona Lane with Dignity Memorial
Most of us have life insurance. Life insurance is a great way to pass on wealth to our children, provide for a surviving spouse, or even to cover estate expenses and left over medical bills. It is just not the best way to plan to pay for your funeral.
Most funeral homes have stringent “at-need” payment procedures. The funeral home will not allow the obituary to be published announcing the dates and times of the funeral, until payment for the entire funeral bill has been secured. Many families come prepared with a checkbook or a credit card when they meet with their funeral director.
The families that carry in an insurance policy are often surprised to find that the policy is:
- no longer in force due to non-payment; or
- had been borrowed against; or
- cashed in years prior.
The family will have to prove that the policy is in force, that it is assignable to the funeral home, and that the beneficiary is available and agreeable to make the assignment. Many funeral homes use a third party company to do the investigation into the policy. This company generally charges a 5% fee for the total amount of the funeral bill. For these reasons, the use of an insurance policy to pay for funeral arrangements has fallen out of favor over the past 10-15 years.
By far the best way to pay for your funeral is in advance of the need, with an Irrevocable Funeral Trust. The trust accomplishes three things:
- It locks the price in place at the time it is established.
- The money is safe from Medicaid (nursing home), bankruptcy and creditors.
- It pays the funeral bill directly to the funeral home within 48 hours.
The irrevocable funeral trust keeps your family from having to accept responsibility for your funeral bill at the time of your death. You have the opportunity to hand your family a receipt instead of a bill.
The process is simple. Selections of services and merchandise are made. The Irrevocable Funeral Trust is established for the amount of the funeral you select. The trust is transferrable word-wide and no one is refused issue.
We welcome the opportunity to meet and discuss your funeral and cemetery planning. As a part of the Dignity Memorial network we can assist with 15 funeral home locations and 4 cemeteries here in the Greater Fort Wayne Area.
Kris Luebke - 260-760-2842
Mona Lane - 260-466-3465