Fraternity-Testvériség, 2004 (82. évfolyam, 2-4. szám)
2004-04-01 / 2. szám
Page 12 Fraternity- Testvériség WHY WOULD ANYONE PRE-ARRANGE A FUNERAL? Submitted by the Outlook Group For generations, the Hungarian Reformed Federation of America has endeavored to bring to our valued members the very best in estate preservation and asset protection coverage. To date, this has been accomplished through our diverse line of quality, affordable life Insurance products. These products generally fall into two categories: term insurance and permanent insurance. Whole life insurance, the most traditional form of "permanent" Insurance can be kept in force for as long as you live. The face amount and the premium (the amount you pay for protection each year) are fixed at the time you buy your policy and stay the same even as you age. The policy's cash value grows at a fixed rate of return specified in the policy and can be used as collateral to borrow against your policy. While permanent insurance is usually recommended as the core of an insurance strategy, term insurance is good for people who need coverage for short periods of time -- younger families, say, who need large amounts of protection for one year, five years, or more. Lower premiums at younger ages increase as policyholder’s age and renew their policies. Benefits are paid only if death occurs during the period covered. If you stop paying premiums, the insurance stops. Life insurance helps to ensure that your family and loved ones are protected against financial difficulties in the event of a premature death. Combined with investments, retirement and estate planning, life insurance is a fundamental part of a sound financial plan. There is one problem that neither Whole Life nor Term insurance policies can protect you against, and that is the rising costs of funeral and other final expenses. Settling an estate can be devastating to a family's finances. Heirs are often left with many unanticipated expenses ranging from debts to taxes to administrative fees. Court and probate records show that in 75% of the cases, the estates do not have the cash to pay for these costs. So heirs are often forced to liquidate assets like the family home or the family business. This hurried liquidation can reduce an estate to a fraction of its former self. Life insurance is important in estate planning because the proceeds from life insurance are payable immediately and can be used to meet these future living expenses. Life insurance helps to ensure that an estate passes to one's heirs... not to one's tax collectors. If the proceeds from whole life and/or term insurance policies protect survivors, where does the money come from to pay final expenses? We are pleased to announce we have a new Pre-Need insurance product that meets this demand. Today, more and more people of all ages are choosing to plan their funerals in advance. Funeral prearrangement planning and funding is a growing trend in America and for good reason! When a loved one dies, grieving family members and friends often are confronted with over a hundred decisions about the funeral - all of which must be made quickly and often under great emotional duress. Questions must be answered such as what kind of funeral should it be? What funeral provider should you use? Should you bury or cremate the body or donate it to medical science? What are you legally required to buy? What type of casket should you choose? What about the final resting place? What other arrangements should you plan? How much will it all cost? Each year, Americans grapple with these and many other questions as they spend billions of dollars arranging more than 2 million funerals for family members and friends. Funeral prearrangement just makes good common sense because it relieves those you love from an emotional burden, allows you to express your own wishes, avoids conflicts among family and friends and relieves those you love from a financial burden. Funeral prearrangement planning is the simple process of planning one’s funeral before the need arises. By meeting with a pre-planning professional, people can plan every aspect of their funerals, from casket and burial vault to music, flowers and more. You can even arrange to pay for your funeral up-front or over time through our new and unique funeral pre-planning product. Funeral prearrangement represents a true gift of love from you to your loved ones that shows your deep compassion for them and your understanding of the many difficulties they will face when a death occurs. Funerals rank among the most expensive purchases consumers will ever make. According to one funeral industry source, the average cost of a traditional funeral today, including a casket and burial vault, is around $6,000 with costs rising about 4% annually. Keep in mind that “extras” like flowers, obituary notices; acknowledgement cards, cemetery charges, or limousines can add thousands of dollars to the bottom line. Many funerals run well over $10,000. Yet, even if you’re the kind of person who likes to haggle to obtain the best price possible, you’re likely to feel uncomfortable comparing prices or negotiating over the details and cost of a funeral at the time of need. Thinking and planning ahead can help you make informed and thoughtful decisions about funeral arrangements. It allows you to choose the specific items you want and need and compare prices offered by several funeral providers. It also spares your survivors the stress of having to make those decisions under the pressure of time and strong emotional feelings. Prepaying your funeral plans in advance through our new funeral Pre-Need product can save your family money and will assure that your survivors will never have to pay additional funds for the services and merchandise you selected. Funeral costs, like everything today, continue to rise with inflation. Our funeral pre-planning product is specially designed to help keep pace with rising inflationary costs so that your funeral is fully covered at the time of need. Many families who do not prearrange use proceeds from life insurance to pay for their loved ones’ funerals Aptly named, life insurance proceeds are intended for
