| Why should I prepay when I make my pre-arrangements? Pre-funding means paying for your funeral pre-arrangements while you are alive, rather than having someone else or your estate pay for your arrangements after your death. There are several reasons why you should fund your pre-arrangement in advance. Guarantees that the funeral services will be carried out at little or no additional cost to your family. Prevents other life insurance policies from being depleted at the time of a loved one’s death. Allows you to consider cost-effective options at a time when you are better prepared to make sound, fiscally responsible decisions. Provides payment flexibility. Allows you to shelter assets when applying for D.H.S. In Oklahoma, D.H.S. will allow you to spend-down $7,500 (apply that much money on a funeral plan) If this may be an issue for you, please consult with your legal advisor. Isn’t funeral planning primarily for the older generation? Funeral planning is for anyone who is interested in sharing their desires, relieving their family of difficult choices and unnecessary expense, and making important decisions without the pressure of illness or circumstance. There may also be other financial benefits to prefunding your funeral at a younger age. How much does pre-need funeral insurance cost? The cost of the insurance used to fund your pre-arranged funeral depends on the cost of the merchandise and services you select for your funeral during the prearrangement process. As it relates to your insurance payments, you can make a single premium payment and owe nothing further or you can choose a plan that provides insurance coverage while you make payments over several years. You may also choose to have the monthly payments withdrawn from your checking or savings account automatically. The choice and the control are all yours. When you pre-fund with Lowell-Tims you are assured flexible payment options to fit your financial situation. Our wish is to make funding your funeral or cremation as simple as possible for you. Where does my money go? Premiums are paid to our trust company or insurance carrier that is underwriting the policy. Monies are used to pay expenses and establish reserves, which are used to pay future claims benefits as they come due. The death benefit is designed to grow over time to help cover the rising cost of funerals. At the time of death, the death benefit is paid to the funeral home after the funeral home delivers the merchandise and services. |
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