The Basics of Pre-Need Funeral Insurance

The purpose of pre-need insurance is to prematurely set aside finances to pay for your end-of-life arrangements. This may include your funeral, burial, cremation, or headstone. Though death and funeral finances aren’t everyone’s conversation topic of choice, it’s smart to consider them well before you pass. Honor You breaks down the basics of pre-need funeral insurance so you can determine whether it’s right for your final arrangement needs.

Who Is Involved?

Pre-need funeral insurance, or a pre-need plan, is purchased from the funeral home of your choosing. Once you designate a funeral home for your posthumous services, the home prices out your desired final arrangements.

After the expenses are specified, you pay that determined cost. Most funeral homes offer some type of payment plan so you can pay over a longer period rather than all at once.

Guaranteed vs. Non-Guaranteed Services

When exploring the basics of pre-need funeral insurance, it’s helpful to familiarize yourself with guaranteed versus non-guaranteed services, as they both influence final costs. Your funeral plan will more than likely include a variety of both guaranteed and non-guaranteed services. The main difference lies in whether your family will pay anything for the final services.

• Guaranteed services remain covered by the funeral home, regardless of an increase in that service’s cost.
• Should a non-guaranteed service increase in cost between the time you pay the funeral home and the time of service, your family will be responsible for paying the difference.

Most funeral homes consider the potential of fluctuating prices and factor this into the cost of their pre-need funeral insurance plans.

Helpful Questions To Ask When Investing in Pre-Need Funeral Insurance

Before cutting a check for future funeral services, it’ll be helpful to ask the designated funeral home these questions.

• What is included in the final cost?
• Are my funds protected should the funeral home go out of business?
• What are your cancellation and refund policies?
• Does my payment cover merchandise and services?

For Other Final Arrangement Details…

Honor You specializes in personalized funeral items and other custom memorial items to make final arrangements individualized to the person who’s passed. We also offer other informational resources on funeral arrangement processes in an effort to alleviate some planning stress. Contact us today to learn more about our selection of keepsakes that help families preserve and honor a cherished life.