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The loss of a loved one is one of the most difficult situations to face in life. This can be especially trying if you are in charge of making the funeral arrangements. Our family here at FuneralHomes.com would like to share with your family some points from experienced funeral directors that will help you in such a troubling time.
Pre-Paying for Funeral Services with a Trust Account
Trust accounts are basically a pre-payment for funeral services deposited in a bank or with a trust company. Because the bank is federally insured by the US government, the funds are 100% totally secure.
If the funds are put into a larger, pooled trust, such as the state-controlled New Jersey Trust Fund, they may earn a more competitive high rate of interest.
Regulations regarding trusts vary from state to state
You will need to ask your local licensed funeral director about the programs available in your area.
Pre-Need Funeral Service Insurance Offers Tax Advantages
Pre-need insurance is a form of “life insurance”. At one time, it was referred to as “death insurance” but the term was changed to “pre-need insurance” or “funeral insurance” to make it more acceptable.
Every pre-need insurance company has different approaches
Generally, a person either pays for a whole-life policy to cover the funeral costs in one lump sum, or they can pay over a 3, 5 or 10 year-period depending upon the insurance company and a person’s age, health history and other factors.
Benefits of pre-need insurance
One benefit of pre-need insurance policies is that some times they may actually pay higher dividends than trust accounts. It’s possible your survivors could receive some money back from the policy after the cost of the funeral is covered.