Category: Advance funeral planning / preplanning

We all have our love/hate relationship with insurance. Typically, we pay and pay and then we pray we don’t ever need to file a claim. No one wants to have their house burn down or blow away. But, it is also hard to write that check every month. Most folks do so because they are afraid not to.

 

However, there is one kind of insurance you will absolutely use. You’ll get more than you paid in, and you don’t have to pay endlessly.

 

Funeral insurance, not to be confused with final expense insurance, is the rare insurance product designed to cover a cost that you absolutely will incur. We all die in the end. So, how does it work?

 

Funeral insurance is sold through your funeral home. The amount of the insurance matches the cost of your funeral in today’s dollars. It can be paid in one payment and you are done. Or, you can pay over three to 20 years and be covered for the whole cost of your funeral while you pay.

 

It’s easy to find out more. Just call the funeral home and ask to speak to someone in the advance planning department. You will want to set aside one to two hours for your meeting with the advance planner. You will have questions. Remember to ask how funeral insurance is different from final expense insurance.

 

www.sytsemafh.com

Another year over and you made it through without getting that funeral plan completed. But there it is, still on your to do list. How many years have you been thinking about getting this done? If you are a procrastinator this is the one you can put off until the very end. Then it will become a job for someone else.

 

Still, if it is on your list there must be a reason. Perhaps you want to be the one who decides what is done and how much is spent on your last good-bye. Maybe you were the one who had to take care of a parent’s funeral and you do not want to leave yours to your children. You had a reason. What was it?

 

Why do we put things off? What’s the benefit of procrastination? What’s the harm?

 

We are naturally conditioned to avoid unpleasant tasks. It is estimated that 10 to 20% of people put off regular dental visits. Why? Not because the results are good, that is for sure. People procrastinate because they are scared. They fear the dentist. And how does that work out? When they finally see the dentist, it is because they are in pain. It is an emergency. Avoiding the regular checkup, procrastinating, does not help. It makes the dental experience more painful and even more expensive. No benefit at all. Putting off funeral planning is a lot like putting off seeing the dentist, nothing good comes from procrastination.

 

Funeral Planning will not kill you. You will have to acknowledge your mortality, but then you do know you will die one day, don’t you? So, what are you waiting for? Do you think planning will be easier if you wait until you are ill? No, of course it will not be easier if you are sick.

 

Actually, the longer a person waits to get a plan in place the fewer payment options they will be able to take advantage of and the costs increase. A younger person can plan, and if they choose to, purchase insurance for their plan so when they die the insurance company will cover the funeral cost. Coverage like that does not get cheaper as we age, it is the other way around. Funeral costs, like most costs, have historically increased over time. There is no point waiting. The cost will not go down.

 

Experience tells us people who complete a plan feel good and are pleasantly surprised at how easy it was. On average it takes about two hours to complete a funeral plan.  You will most likely be able to choose to have a planner come to your home if you don’t want to go to the funeral home. Planning your funeral is not difficult. Just call the funeral home and set up a time. Do not wait. 2021 will be over sooner than you think.

 

www.sytsemafh.com

Reason Number One:

 

The need to make that first call, the one to the funeral home, nearly always catches people unaware and off guard.

 

Even when a death is clearly coming it is almost always unexpected. “Mom was 96 but we just talked to her on Sunday, and she was fine. Hospice told us it was just a matter of days, but we just stepped out to the store for a few minutes, and he was gone. She was doing so well, we were surprised.”

 

When a person dies the first order of business is calling a funeral home to come and take the body into their care. When family doesn’t live close, they may not be familiar with the funeral homes in the area. Which funeral home should be called?

 

Even with all of today’s wonderful ways to connect it can take hours to track down immediate family members. This one is in a meeting, that one is picking up kids at soccer practice, someone is at the gym and has their phone on silent. It can take a while to reach everyone and get them to weigh in on the decision about which funeral home to call. In the meantime, someone waits.

 

Reason Number Two: 

 

The people who you love and who love you are going to be very busy just getting there. It’s not a good time to be making the big decisions. Burial or cremation, church or not, celebration of life, which minister, what restaurant, wood casket or metal, visitation the day of service or the night before?

 

Your far-flung family will be trying to book flights, pack suitcases, arrange for the dog to be taken care of, get someone to fill in for carpool, and get time off work. Their minds will be racing. It’s not a good time to make decisions that they will live with forever. Funeral decisions carry a lot of weight. Everyone wants to get it just right. No one wants to wish they had buried mom in her red dress instead of her blue dress for the rest of their life. Just think how much better it would be IF they just had to get there and meet with the funeral director you selected to review the plans you left for them.

 

Reason Number Three:

 

Your family needs time to be together. They need each other. They need to remember the stories, look at the pictures, cry together, and hug one another. 

 

The plan you leave for your children, grandchildren, sisters and brothers, and friends is a gift. You give them the gift of time to lean in and realize that they have lost you. This is precious time they have together. There will still be much for them to do but when you have lifted the weight a little, you leave room for them to work together and be creative. They can pull their talents and put their own touches on the framework of the funeral plan you provided for them.

 

www.sytsemafh.com

Definitely not. In fact, if one were to ask the children and family members of those who planned their funeral in advance how they felt about their family member’s foresight they would no doubt tell you they felt very lucky indeed.   

 

Imagine this: your phone rings or buzzes or sings and you answer or check your messages only to find out someone you care about has died. Maybe they succumbed to a long and difficult illness or perhaps the death was caused by an accident or a sudden unexpected medical event. What happens next? If you are one of the family decision makers, you begin to come together. That coming together can mean a drive across town or it may involve booking a flight. It can mean a series of telephone calls or a Zoom style family meeting. There will be questions that need to be answered and decisions that must be made. 

 

Where did the death occur? Who do you call to transport the body? Where will the body be taken? Which funeral home will be used? When will a service take place? Will there be burial, cremation or something else? Will there be a spiritual component? Who will prepare the death notice? Who will take care of writing the obituary? How much will everything cost and who will pay? How soon will funds be available? There will be many decisions that must be made in a short period of time. 

 

Now, imagine there is a plan in place. Funeral arrangements have been made and paid for in advance, maybe even years before an illness was even known about. Imagine family members knowing exactly who to call, what will happen, how much it will cost and how all the services will be paid for. Luck is with those who prepare. It’s called making your own luck. 

 

www.sytsemafh.com

The butcher, the baker, the candle stick maker. Does anyone go to the butcher for a candle? Would anyone even think of asking the funeral director for investment advice?  The financial advisor, while very knowledgeable about money and investments, has little experience in helping a family honor the life of someone they love. Yesterday you could hold the hand of your loved one, today you must figure out how to say good-bye.  Tomorrow you will begin the difficult task of living without the one you love. In the midst of all of this you will need to plan and pay for a funeral service. Helping families navigate those difficult days or to plan for this inevitable event is the job of the funeral director.

 

Accessing the dollars to pay for a funeral is where the financial planner can help. A financial planner who is familiar with a family’s financial resources can help them decide how and when to pay for a funeral. In a perfect world the investor, that’s you, would not die on a day the market was down, or just as his stocks were on the rise. He would die when it is a good time to take the cost of his funeral out of his investments. His heirs would not be burdened with tax consequences. Truth be told, life just does not always work out perfectly. We do not decide when we die.

 

This is what you can do. Plan the funeral with your funeral director. Talk to her about service options that will help your family cope with your loss. Talk to her about how much you are comfortable spending. Become educated about the advance payment options that are offered through the funeral home.

 

Ask if you can pay for your funeral in monthly payments over a few years. Ask what happens if you die before you complete all payments. Many funeral homes fund funerals with insurance products designed just to pay for funerals. That can mean the funeral will be paid for by the insurance company should death occur before your payments are completed.

 

Ask what happens if the cost of your funeral increases between now and when you die.  Is there protection available for funeral inflation?

 

Talk to your spouse. If you die first, who will pay for the funeral? Where will the money come from? Will there be tax consequences? Would it be easier for the one who will be responsible if the funeral plan were funded? Decide what will work best for your family.

 

Now, go to your financial advisor. Ask him if you should pay for your funeral in one single payment now, or should you take advantage of one of the payment plans? Share all the information you receive from the funeral home. Get financial advice, not permission, from the one who looks through the lens of the dollars, the financial advisor.  Get your funeral planning advice from the one who helps families cope with death, the funeral director. Make your decisions for the ones you love, with the ones you love, your family.