Think about some of your life’s most memorable milestones: getting married, starting a family, getting an education, retiring, or buying a home. These events don’t just happen. You consider options, plan, and save. Funerals require planning too! However, only 40% of people are comfortable talking about end-of-life expenses.
The death of a loved one is a very difficult time for everyone. Yet, during this period of grief and emotional readjustment, family members and friends are often confronted with dozens of decisions about the memorial services. A Funeral Expense Trust is a designated, prefunded plan that combines the financial stability of insurance with the security of an irrevocable trust. A carefully planned and funded funeral expense plan sets aside money specifically for your funeral.
Benefits of a Funeral Expense Trust
Your family won’t be left to pay for funeral expenses though personal savings, loans, or credit.
Avoids Probate court and cost.
Federal Income Tax-Free death benefit.
Funds protected by Creditors.
Your loved ones know and can carry out your end-of-life wishes.
Excluded assets to qualify for Medicaid & SSI in most states.
Frequently asked Questions
Why should I purchase a funeral expense trust from my Insurance Associates Agent instead of the funeral home?
If a funeral trust is purchased from a privately-owned funeral home and that funeral home then goes into bankruptcy or mismanages the funds, the money spent on prepaid funeral trusts may be irretrievably lost.
In addition, when purchased through an insurance agent your loved ones can use the funds at a funeral home of choice. They are not tied down to the funeral home that sold the policy allowing for more flexibility.
What happens if the funeral expenses are paid for and there are funds left over?
Any remaining funds would then be awarded to the estate or named beneficiary of that policy.
How quickly are the funds available after death?
Funds in a funeral trust are immediately accessible upon death so there is no waiting as there often is with a traditional life insurance policy.
—————Travel Checklist! (Category: Planning Ahead)
So, you have a vacation planned? Good for you! Here is what you need to know to prepare in case you need healthcare while on vacation.
- Contact your Insurance Associates agent to review your important information about your policy before traveling.
- Consider a travel insurance policy when traveling internationally. Most insurance carriers have limited to no coverage while out of the US, so adding a policy to your flight may be the best option.
- Refill your prescriptions. Contact your pharmacy well in advance so you’ll have enough medication for your trip, and pack them in your carry-on!
- Bring a list of your prescription medications. Print a list to keep in your wallet and snap a photo of it on your phone.
- Keep your insurance cards in your wallet. Most insurance companies have a unique ID for each member, so be sure you have one for everyone including minors.
- Prepare an emergency information card that identifies:
- your emergency contacts
- your blood type
- any allergies or chronic illnesses
- Pack a copy of your Advance Directives and make sure someone at home can access other important documents in case of emergency.
- Wear a MedicAlert bracelet, if you have a serious medical condition, implanted medical device, or life-threatening allergies (https://www.medicalert.org/). Depending on the plan you purchase, you can even access your Advanced Directives, Emergency Contacts, and other important documents with these bands.
