| Frequently asked questions about Pre-Planning |
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| What is the difference between final expense, pre-arranging and pre- funding? Final expense policies set money aside for the future use of paying for a funeral or cremation at the time of a person’s death. No merchandise or services are preselected so there are no price guarantees associated with a final expense policy. Pre-arranging is the process families go through to make decisions about how you want your funeral or cremation performed and what casket, urn, flowers, etc. you want at your funeral. Pre-arranging records your wishes so that your loved ones can avoid having to make difficult decisions during an emotional time. Pre-funding is paying in advance for your pre-arranged funeral or cremation. In many instances, pre-funded contracts lock in the cost of the merchandise and services selected at today’s prices, protecting those prices from inflation. Pre-arranging and pre-funding a funeral or cremation minimizes the financial burden on your family because you are locking in the prices of today for a funeral or cremation in the future and you aren’t making decisions at the time of death, which may result in emotional overspending. What is pre-need insurance? Pre-need insurance is the funding vehicle used by funeral homes when pre-funding your funeral. It is similar to all life insurance products and there are numerous types of policies. There are whole life polices, whole term, 3,5,10 year term and annuities.The main diffrence is, you take these policies out just to fund your funeral expenses. What is the difference between a traditional life insurance policy and pre- need funeral insurance policy? Traditional life insurance is intended to provide for your survivors’ future financial needs, such as income, education costs, and mortgage payments. Pre-need funeral insurance is specifically intended to cover the predetermined costs of your prearranged funeral. The growth that accumulates on your funds is then used by the funeral home to offset inflation from the day you prearrange to the date of your death. . What is the benefit of pre-arranging my funeral now? In recent years, more and more people have opted to take matters into their own hands and make funeral arrangements prior to their death. These arrangements are commonly referred to as preplanning or prearranging. Many people find that preplanning gives them peace of mind knowing that their wishes will be respected and the family has fewer burdens from making decisions about funeral arrangements at the time of their death. Others find that by pre-arranging and pre- funding their funeral or cremation expenses, any additional life insurance they have can be used for its original purpose. What is pre-planning for my funeral like? What can I expect? Pre-planning your funeral consists of meeting with the counsler at Lowell-Tims to record information necessary to choose the type of service you desire, including the type of casket, concrete vault or cremation urn. Once your pre-arrangements are made, you may pre-pay your funeral to secure the majority of the price at today’s cost. |
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