William Penn Life, 2003 (38. évfolyam, 1-12. szám)
2003-02-01 / 2. szám
__Money wi$e Planning for the inevitable Making funeral arrangements in advance can save you grief and money THE DEATH OF A LOVED ONE IS often a devastating experience, complicated by the many arrangements that must be made. Given the tumult this causes, you may be distracted and, hence, vulnerable to those who might be inclined to take advantage of you in your bereavement. If you give thought to these arrangements ahead of time, you may spare yourself or your survivors additional grief. Preneed Funeral Arrangements In recent years, more and more people have opted to take matters into their own hands and arrange their own or a loved one's funeral prior to their deaths. These arrangements are commonly referred to as "preneed funeral arrangements" or "prepaid funeral agreements." Through these arrangements, people are able to decide in advance what type of funeral they will have, while at the same time eliminating some of the stress that family members frequently experience. You may also be able to lock in today's prices for a future funeral. What You Should Know The laws governing preneed arrangements vary from state to state, but they share the common purpose of protecting consumers who pay for Money Links For more information on preneed funeral arrangements and funeral insurance, contact your attorney, or financial advisor. To find additional information on these topics on the Internet, log onto the website of your state’s insurance commission, or log onto: O www.insure.com their funerals in advance. Regardless of where you live, you should keep the following in mind when considering preneed arrangements. First, you should ask your chosen funeral director to fully explain all the options available to you regarding the establishment of a prepaid funeral agreement. Before entering into a preneed funeral agreement, discuss your plans with your family and your attorney to make sure the agreement is consistent with your will and estate planning and with state laws and regulations. Funeral Insurance Policies One option for funding your preneed funeral arrangements is through purchasing what is known as "funeral insurance." Also known as "preneed" or "burial" insurance, such policies are limited solely to paying the costs of one's funeral and/ or burial. Like any other insurance policy, at the time of death, the face value of the policy is payable to the policy's beneficiary, who is responsible for paying the funeral director. Premium payments on such policies should be made payable to the insurance company, not to the funeral home. Funeral directors frequently earn a commission from the sales of such policies. This fact should be disclosed to the consumer. Guaranteed/Nonguaranteed Funeral directors, at their option, may guarantee that the prices charged for the funeral's goods and services will not be subject to price increases or inflation. This enables you to lock into a funeral at a certain price, regardless of how long it is from the date of the arrangements to the time the funeral actually occurs. However, funeral directors may elect not to provide price guarantees. In this case, you should know that the What is Funeral Insurance?- It’s a form of life insurance that covers funeral expenses and is sold by funeral homes and insurance agents.- It’s sold to people concerned about the expenses of their death for surviving loved ones.- Many of those who buy funeral insurance have health conditions that make other life insurance unavailable to them.- It’s often sold as a “guaranteed issue” policy, which means it’s available to anyone who wants to pay for it.- Applicants for funeral insurance don’t need to be in good health as they do for other types of life insurance.- The premiums are generally higher than for other types of life insurance.- The death benefit is usually smaller than for other types of life insurance. money prepaid for the funeral may not be sufficient to cover the cost of the funeral at a future date. Whichever option you select, it must be disclosed in writing to you at the time of the funeral arrangement. Know the warning signs. There are certain steps consumers can take to make sure their preneed funds are safe. First, consumers purchasing funeral insurance policies, should receive those policies within a reasonable amount of time. If months have lapsed and you still have not received your policy, call the insurance company. Also, make sure you receive at least one statement each year detailing the status of your account. |"|>|,| 4 William PfflB Lile, February 2003
