Preplanning

Benefits of Preplanning

14 Reasons Why Preplanning and Pre-funding Benefits You and Your Loved Ones

  1. It allows you to spare your family the burden of making complicated and difficult decisions while trying to cope with their grief and loss.

  2. The cost of a funeral or a cremation can vary significantly depending upon the personal choices selected; prearranging relieves loved ones of the financial burdens associated with funeral expenses during this highly emotional time in their lives.

  3. Prearranging provides an opportunity to discuss a difficult subject openly with your loved ones in a non-stressful environment, and ensures that your final wishes will be carried out just as you would have them - down to the last detail.

  4. Allows your loved ones to take comfort in knowing that your funeral reflects your wishes.

  5. It allows you the opportunity to become informed of the many personal decisions that must be made in the event of your death, and the many choices available in making those decisions.

  6. Pre-funding with insurance lets you take care of future funeral expenses at today's cost, protecting you from inflation and unexpected expenses while ensuring that your family doesn't inherit the bill for your funeral.

  7. For a person who has limited assets and who qualifies for Medicaid, a pre-funded funeral or cremation is one of the few assets that he/she is allowed to own.

  8. Unlike other investments (including cash value of traditional life insurance), a properly constructed and funded preneed plan will not count as an asset if you enter a nursing home.

  9. A pre-funded funeral or cremation eliminates the risk of having to sell other assets upon your death when their value may be depressed.

  10. The death benefit of a preneed life insurance policy grows over time to help offset inflation and that growth is not taxable to you.

  11. With a preneed insurance policy, funds are immediately available to pay funeral costs, with no waiting period due to probate or other delays.

  12. A preneed insurance policy is totally portable; therefore, if you move to another area, the insurance can be used to fund a new preneed contract with the funeral firm of your choice.

  13. Your funding is 100% secure - backed by Fortis Family, an industry leader for more than 60 years, with assets totaling more than $ 2.4 billion and over 1.5 million policies in force.

  14. It is not only a wise financial decision; it is also one of the most selfless things you can do for the loved ones you leave behind.

According to the American Association of Retired Persons (AARP), funerals and burials are among the most expensive purchases older Americans make. The average cost for an adult funeral ranges from $5,500 to $6,500 and is expected to increase steadily over the next decade. Rising costs include caskets, burial plots, burial vaults and markers, funeral vehicles, flowers, legal paperwork and other necessary details. One of the biggest advantages of prearranging is the ability to lock-in many of these expenditures at today's prices, regardless of what they may cost in the future.

The number of people choosing to pre-fund their funerals has dramatically increased over the last decade. Most do so after witnessing or personally experiencing the complicated and expensive process of planning and paying for a funeral. The fact that more and more people are prearranging indicates that most people recognize it as a valuable investment, as well as a loving and thoughtful gesture.

Funeral planning involves the relatively easy process of making plans for your own funeral - or that of a loved one - well in advance of need. It is no less practical, no less important, and no more complicated than planning for college tuition, a future wedding, a new home or retirement. Likewise, the advantages and benefits are no less valuable.

How to Plan Your Funeral

Although the process is easy enough to begin on your own, we encourage you to seek the support and guidance of an experienced and caring funeral home professional. They can answer any questions you may have and help you complete the preplanning and pre-funding process with minimal effort.

Funeral preplanning involves the relatively easy process of making plans for your own funeral - or that of a loved one - well in advance of need. It is no less practical, no less important and no more complicated than planning for a college education, a future wedding, a new home or even retirement.

Planning your funeral involves:

  1. Making Your Wishes Known

  2. Funeral Checklist

  3. Funding Options

  4. Ideas for Unique Funerals

  5. Writing an Obituary

Funeral Checklist

Checklist of Funeral, Burial and Personal Items

The funeral preplanning process is relatively easy, and guarantees that important decisions are taken care of in advance. The result is a funeral that honors and celebrates your life. Fortis Family has prepared the following checklist, which will introduce you to the funeral planning process

Documents and items to locate

  • Deed to cemetery plot

  • Insurance papers

  • Birth certificate

  • Marriage certificate

  • All deeds and titles

  • Mortgages and notes

  • Automobile records, titles and registrations

  • Tax records

  • Bank account information

  • Credit card information

  • Safe deposit box location and key

  • Social Security benefits information

  • Benefits from any fraternal, veteran or union organizations

  • Veteran discharge papers

  • Citizenship papers

Personal Information to prepare for family

  • Information regarding the will (attorney, the executor)

  • Name of medical power of attorney, if one exists

  • Names of accountant, stockbroker or banker

  • Information about any real estate, stocks or bonds

  • Plans for any pets

Funeral Service Preparations

  • Select funeral home

  • Select casket or urn

  • Prepare death certificate

  • Select pallbearers

  • Choose a family viewing or a visitation

  • Select flowers

  • Select music

  • Select where to send memorial contributions

  • Arrange transportation

  • Select clothing/jewelry

  • Select which newspapers to notify

  • Prepare information for obituary (family history, education, professional history, activities, etc.)

  • Arrange reception (location and food)

  • List family and friends to notify

Church or Memorial Service Plans

  • Location of a church or memorial service

  • Select clergy

  • Name any family or friends that should deliver eulogy or participate in service

  • Select scripture or literature to read

  • Select photographs to display

Burial Preparations

  • Select cemetery plot

  • Select grave marker and inscription

Frequently Asked Questions

Q: What exactly is preneed funeral insurance?

A: Preneed funeral insurance is an insurance policy whose benefits are assigned to cover the cost of a pre-arranged funeral contract. Funeral contract typically includes standard funeral home services, funeral merchandise, church services and even burial services and merchandise. The purpose of preneed funeral insurance is to set aside funds before the need arises, thereby protecting your loved ones and your financial assets by "locking in" on today's costs, when your funeral home has guaranteed the price of your funeral pre-arrangement.

Q: What's the difference between a standard life insurance policy and preneed funeral insurance; aren't they basically the same thing?

A: The primary distinction actually has to do with "intended purpose." Traditional life insurance is intended to provide for a broad range of your survivors' future financial needs - provide income, cover education costs, pay off a mortgage, and the like. Preneed funeral insurance, on the other hand, is specifically intended to cover only the predetermined costs of a pre-arranged funeral contract.In addition, there are several other important differences between the two types of coverage. For example:

With regard to benefit distribution at the time of death, preneed funeral insurance is payable immediately to the beneficiary (generally the funeral home) upon the policyholder's death; traditional life insurance policy benefit distributions may require several weeks to be paid by the insurance company.

Q: Do I actually need preneed funeral insurance; can't I simply use some other source of funding?

A: Preneed funeral insurance is a choice, not a requirement. However, it is important to understand the added value of preneed funeral insurance over other sources of funding, such as savings accounts, trusts and final expense insurance.

First, preneed funeral insurance is tied directly to the costs of a pre-arranged funeral. All of the services and merchandise that you select will be completely covered by your insurance if your funeral home has guaranteed the price of your funeral.

Second, there is no tax liability on the death benefit to your surviving family members.

Third, the benefit of your preneed funeral insurance is payable immediately to the funeral home at the time of your death.

Fourth, there is little or no underwriting required to apply for a preneed policy. Decision is typically made within minutes.

Q: How much does preneed funeral insurance cost?

A: Your cost depends on the cost of the services and goods you select for your funeral during the preplanning process. In other words, you control the costs based on what you choose.

As it relates to your insurance payments, you can make a single premium payment and be done with it, or you can spread your payments out over several years. Again, the choice and the control are all yours.

Q: Can I prefund my funeral without preplanning it?

A: At this time, the most effective way to predetermine the cost of your funeral and, therefore, the amount of insurance you will need, is to work with a committed and caring funeral home professional to identify the specific services and merchandise you will want in the future.

Conversely, if you only decide to preplan your funeral, it is also in your own best interest to weigh the financial and emotional advantages of prefunding your arrangements. If desired, your funeral home professional can guide you through the entire process.