Funeral Services, Cemetery Burial, Cremation Arrangements;
Choices for Paying the Costs
A Final Arrangements
arrangements for a funeral service, the cemetery or even a cremation
will eventually require the expenditure of money. Although, we at Final
Arrangements Network strive to show how this can be done for up to 50%
less than you might otherwise spend by preplanning or smart consumer
purchasing, it still will mean someone will have to pay someone.
both general life, whether term or whole life, is only one type
available for funding your final arrangements. You might find that you
would prefer to not only preplan those final arrangements but also
begin paying for them as well through a funeral home and or a cemetery.
Funeral homes often have access to a form of insurance known as
modified whole life. This type of insurance would allow you to pick the
services and items for your funeral years in advance, set up a monthly
premium within your budget and therefore lock in the cost of that
portion of you final arrangements. Most funeral directors or their
preplanning specialists could give you detailed information on just how
they can set this up for you and your family.
route for funding is to create a separate savings account at your bank.
You can set aside up to $1,500 without Social Security counting these
funds as an asset. The exclusion of this money from your assets can be
critical in some situations of overwhelming medical costs
associated with a long term illness where all but the bear minimum of
assets are allowed or it could jeopardize Medicare eligibility. The
term "Spend Down" is often the term heard for situations like this.
Having what is known as a BOD account, Benefits On Death account,
avoids these set aside assets ever being counted as an asset and could
ease the financial burden upon death for the family faced with not only
huge medical bills but also a funeral and burial which must be paid.
You should check with your bank and ask them about this type of
account, also know as Totten Trusts, if you are interested in this
little known mechanism for funding final arrangements in advance.
Security has another mechanism that also could be used with regards to
burial items. According to current law an individual is allowed to
purchase a burial property, the marker (i.e. memorial, monument, grave
stone), the Opening & Closing service of the grave, vault (if
required by the cemetery) and casket or urn without these being counted
as assets of the individual. This does not extend to funeral services
unless those services are bought in conjunction with a irrevocable
contract agreement with the funeral home that can be proved to exist.
The modified whole life some funeral homes offer, as discussed above,
generally qualify for this exclusion but only if the contract is
also specialty term insurance policies generally known as "Burial
Expense Insurance" which agree to pay a specific dollar amount upon
death once a two or three year waiting period has been fulfilled and
provided further the premiums have been paid up through the time of
death. For some older individuals this is the only insurance available
for them to buy because they are the only ones that will accept
applications from older individuals and often don't have a physical
have used The Final Arrangements Network's tutorials and planning
programs you should start to get an idea of how much your final
arrangements will cost. You then will be in a position to determine
where the funding, now or then, will have to come from to carry out
your wishes. Any of the above or combination of them should give you a
secure feeling that your death will not put undo financial strain on
Arrangements lists here some sources for further information on
insurance and funding mechanisms for your final arrangements. We will
continue to seek other sources and we are certain that companies who
provide these types of services will ask to be listed so keep this page
in your favorites and refer back from time to time as you develop your
final arrangement plans. Here are some
sources for information on funding and insurance we have found or have
asked to be listed below.
to More Information on this Subject
WEB-TV Insurance Quotes
- Frequently asked questions about
New York State Funeral Directors Association
- Preplanning a Funeral, What is a
Preplanned Funeral? ... Why Preplan a Funeral?
MSN-Money - . Articles,
calculators and answers to common questions help you plan the
retirement of your dreams.
New York State Department of
Health - If you are planning a
funeral, you have many decisions to make. You may feel overwhelmed or
confused. You may have questions. Read this brochure to learn more
before you make any commitments or decisions.
This one stop, online insurance resource allows you to select the right
insurance at the right price for you.