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final expense insurance
Old 11-04-2018, 08:14 AM   #1
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final expense insurance

I was wondering what the thoughts are on final expense insurance. is this insurance cost effective? is it just as beneficial to pay at the time when needed? I am sure there are posts out there about this subject, but I couldn't find them. so if there are please redirect.
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Old 11-04-2018, 08:17 AM   #2
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I was wondering what the thoughts are on final expense insurance. is this insurance cost effective? is it just as beneficial to pay at the time when needed? I am sure there are posts out there about this subject, but I couldn't find them. so if there are please redirect.
I think a pre-planned funeral makes sense. I do not think Insurance is needed as long as someone budgets ahead. It is not as if you may not die, it is pretty well a given. In over half of the cases, you will over pay for the insurance due to rates of mortality and "overhead" charged in the premium.
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Old 11-04-2018, 09:07 AM   #3
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I was wondering what the thoughts are on final expense insurance. is this insurance cost effective? is it just as beneficial to pay at the time when needed? I am sure there are posts out there about this subject, but I couldn't find them. so if there are please redirect.
My apologies for commenting when I have very little knowledge of this insurance product, but I can't get my head around how it would work and how it would be differentiated from plain ole term life insurance or simply pre-paying for your chosen level of final expenses. Can you describe what you are being offered/sold? And what are you seeking to insure against?
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Old 11-04-2018, 09:09 AM   #4
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Honestly, this is one thing we simply do not worry about. Let the estate take care of it.
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Old 11-04-2018, 09:30 AM   #5
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... It is not as if you may not die, it is pretty well a given............
Whoa.....seriously?
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Old 11-04-2018, 09:41 AM   #6
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Direct cremation here is under $1000 at a couple of local no-frills places.

I'm setting up the above next week for a terminally ill relative.

Service at their church is free, as is scattering the ashes in the church's graveyard.

Or their family might decide to pay for internment of the cremains with a (small) gravestone.
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Old 11-04-2018, 11:23 AM   #7
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My parents pre-paid their funeral expenses. It was really just a form of an insurance policy, however. We ended up paying for a better casket, an elaborate casket cover (flowers) and the cost of opening up the grave. The funeral ended up being fairly expensive--despite having insurance.

I had a friend that worked at a funeral home after college. They were as much a collection agency for prepaid funeral premiums as a funeral home.
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Old 11-04-2018, 11:32 AM   #8
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Direct cremation here is under $1000 at a couple of local no-frills places.

I'm setting up the above next week for a terminally ill relative..

$1000 sounds pretty cheap, compared to prices for cremation around here (from what I have heard, anyway). I'm assuming the no-frills cremation does not include embalming first? That is what I would want for myself, but I really don't know if any of the crematories around here do cremations without embalming first.(?)
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Old 11-04-2018, 11:59 AM   #9
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Join a non-profit Memorial Association such as Oregon Memorial Association - Home, there are similar groups in almost every state. They have contracts with mortuaries.

Costco sells urns at a huge discount.

There are many pioneer cemeteries across the country, many have fallen in the care of counties. Search them out to see if any will work for you.

Plan ahead and leave instructions.
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Old 11-04-2018, 12:28 PM   #10
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$1000 sounds pretty cheap, compared to prices for cremation around here (from what I have heard, anyway). I'm assuming the no-frills cremation does not include embalming first? That is what I would want for myself, but I really don't know if any of the crematories around here do cremations without embalming first.(?)
Most states do not require embalming prior to cremation, and many do not require it for burial. Usually it is the funeral home requiring these things.
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Old 11-04-2018, 01:24 PM   #11
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I own a funeral home, we don’t bill estates. Our agreement is between the person marking all the arrangements.
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Old 11-04-2018, 01:27 PM   #12
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Wrong, when you prepay at a funeral home that guarantees prices will be frozen. Money by law goes to a insurance company. We file claim for money when person dies if we are the funeral home handeling services.
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Old 11-04-2018, 02:37 PM   #13
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Wrong, when you prepay at a funeral home that guarantees prices will be frozen. Money by law goes to an insurance company. We file claim for money when person dies if we are the funeral home handling services.
It depends on what type of protection the OP is considering. Yes, there are prepaid plans with funeral homes which, as you said, are required to involve an insurance company. (I live in the KC area and there have been sad stories about people prepaying for funerals, the funeral home keeping the money, the funeral home being acquired, and the new owner not honoring the plan. A contract with an insurance company gives more protection to the consumer.) My question for that coverage would be what happens if you move out of the area.

The other product would be just a life insurance policy that pays enough for funeral expenses when you die. They're usually relatively small amounts- $25K and under- marketed to seniors. I finally got AAA to quit sending DH solicitations for Guaranteed Issue Life Insurance ("You cannot be turned down!") a year after he died. The catch: if you die within two years they refund your premiums plus a little interest. These are meant for people who don't anticipate having much $$$ left for final expenses but don't want their loved ones to be burdened with the bill.

DH's cremation 2 years ago was $1,000, no embalming. His ashes are still in the plastic container from the mortuary (sealed in a heavy plastic bag) but my brother, a gifted woodworker, is making a container for them. The funeral was expensive but that was my choice- I wanted 4 soloists and an organist and made a donation to our priest even though he said it wasn't necessary.
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Old 11-04-2018, 02:45 PM   #14
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Yes, there are crooks in every industry. If the steal preneed
Money, they go to jail.
We are a family independent funeral home and since the money is with an insurance company, NOT in our accounts. You can move anywhere and a funeral home in your home town will provide the service and claim the money with insurance Co. So simple. 19,000 funeral homes in the US.
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Old 11-04-2018, 04:07 PM   #15
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Yes, there are crooks in every industry. If they steal pre-need money, they go to jail.

We are a family independent funeral home and since the money is with an insurance company, NOT in our accounts, you can move anywhere and a funeral home in your home town will provide the service and claim the money with insurance Co. So simple. 19,000 funeral homes in the US.
Thanks for that info- good to know it's portable. After Mom died, Dad ended up moving from the city where they'd lived for 30 years to be near my brother 2 hours away, so the implications of a future move are something to consider.
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Old 11-05-2018, 06:08 AM   #16
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Yes, there are crooks in every industry. If the steal preneed
Money, they go to jail.
We are a family independent funeral home and since the money is with an insurance company, NOT in our accounts. You can move anywhere and a funeral home in your home town will provide the service and claim the money with insurance Co. So simple. 19,000 funeral homes in the US.
do you have a site where these funeral homes are listed or any information?
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Old 11-05-2018, 06:15 AM   #17
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I own a funeral home, we don’t bill estates. Our agreement is between the person marking all the arrangements.
Then the Executer will handle it. We have a "Final Arrangements" directive that states that the estate will pay for all expenses and how we want our remains to be disposed. Most final Wills include this, or at least should if prepared correctly, even if the survivors are free to decide the final arrangements.
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Old 11-05-2018, 06:18 AM   #18
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I don’t know af any site. Luckily there have been very few.
We just had a financial broker in our area charged and sentenced for stealing 50 million from there investments.
Like I said, happens in every industry, sadly.
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Old 11-05-2018, 06:22 AM   #19
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Yes, you can do that. What I am saying just about all funeral homes require payment when services are rendered, just like all businesses. Could take months to years to close an estate and a attorney pay a funeral home. This is why funeral homes can’t wait that long for payment. Also I have been involved with estates that we find out 6 months down the road is insolvent. NO MONEY to pay creditors. Another reason payment is required upfront . The person who paid funeral bill will be reimbursed personally from estate when closed.. so your executer will pay from is own packet and be reimbursed from estate if you chose not to pre-pay at a funeral home.
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Old 11-05-2018, 06:25 AM   #20
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$1000 sounds pretty cheap, compared to prices for cremation around here (from what I have heard, anyway). I'm assuming the no-frills cremation does not include embalming first? That is what I would want for myself, but I really don't know if any of the crematories around here do cremations without embalming first.(?)
Embalming, why?

Open-casket viewing before cremation?

Normally they'd just hold the body in the fridge for whatever time the state mandates (usually 24 hours) before cremating it.
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