Why Pre-Need Insurance Policy is a Smart Way to Plan For the Future
Looking ahead to your own funeral arrangements may not be the highlight of your day. But taking care of these plans while the pressure of illness or circumstance is not looming overhead will give you the peace of mind you are searching for. Whether you are an organized person or not, planning ahead is a surefire way to alleviate any stressors on you and your loved ones. While there are many options for end-of-life planning, many people agree that Preneed insurance is a straightforward way to ensure that both your wishes are carried out as you intended and that your loved ones don’t need to deal with any extra stress in a difficult period of time.
What is Pre-Need Insurance?
Preneed is a term that for a specific type of end-of-life plan that covers the specific services and merchandise selected for an individual’s funeral arrangements. They are tied to a specific funeral home. Without any loose ends to tie up, you can rest assured that your preferred arrangements will be followed through. This will not only give you peace of mind, but it will allow your loved ones to focus their attention on healing from their loss rather than scrambling to pick out exact goods and services for your funeral arrangements.
To select the specific arrangements, you will meet with a funeral home director (who many times is also a licensed insurance agent) and personally select the services and merchandise that will be a part of your preferred funeral. This type of detailed planning can feel overwhelming, but pre-planning takes the burden off your loved ones in a time of grief. It also takes the pressure off yourself in the case of terminal illness when you would prefer to be spending your last moments enjoying life with family and friends.
Because a Preneed policy only covers what is itemized and purchased, it is wise to communicate with your family members about the selected plans or leave behind the terms of the policy with your last will and testament. The funeral director that you work with makes the claim, collects the money and carries out your wishes, so it is important to have the whole family on the same page. This will help mitigate any confusion around exactly what is covered in the wishes you have on file with a local funeral home.
What are the Advantages of Pre-Need Insurance?
You don’t need to be near the end of your life for a Preneed policy to be an option. Anyone who is eager to relieve their loved ones of difficult choices can purchase a Preneed policy. It is, however, important that you are confident in your wishes for your funeral arrangements.
Preneed plans also allow some individuals to lock in today’s prices for most goods and services. This can be a major advantage to save money against the steep inflation of funeral expenses.
Some policies will allow for amendments but it is important to discuss the options and terms with the funeral director before solidifying your plans. Preneed plans are as unique as the individuals that they protect. It is always wise to discuss your personal wishes and unique situation with an expert to select the best coverage option for you.
What is the Difference Between Pre-Need and Final Expense Insurance?
While both options help cover the costs of funeral arrangements, final expense policies only set away funds for arrangements and do not make any decisions on planning. Pre-need insurance policies, on the other hand, cover the specific items that the insured purchases and nothing further. The policy can be paid out in a lump sum or you can stretch it out over time but the cost – or amount allotted to the funeral arrangements – is determined upfront. Some Preneed policies even offer a price guarantee for your selections, which ensures that you pay the current cost of each good or service at the time of purchase. This is a great way to avoid increases in cost due to inflation that could leave your loved ones feeling duped.