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-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.
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.
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.