final expense insurance

[frank]

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.

 

[VanWinkle]

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.

 

[youbet]

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?

 

[ShokWaveRider]

Honestly, this is one thing we simply do not worry about. Let the estate take care of it.

 

[travelover]

... It is not as if you may not die, it is pretty well a given............

Whoa.....seriously?

 

[ncbill]

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.

 

[Bamaman]

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.

 

[RAE]

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.(?)

 

[Brat]

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.

 

[VanWinkle]

$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.

 

[Monterey298sc]

I own a funeral home, we don’t bill estates. Our agreement is between the person marking all the arrangements.

 

[Monterey298sc]

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.

 

[athena53]

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.

 

[Monterey298sc]

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.

 

[athena53]

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.

 

[frank]

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?

 

[ShokWaveRider]

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.

 

[Monterey298sc]

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.

 

[Monterey298sc]

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.

 

[ncbill]

$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.

 

[Monterey298sc]

Embalming, to protect public health and funeral liabilities.
People kiss a deceased all the time.

 

[ShokWaveRider]

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.

In a healthcare directive you can specify all this, I think it is referred to as an "Immediate Disposition". Subject to State Laws of course. In some cases embalming may be mandatory or other arrangements depending of cause of death etc.

This are some examples we referred to when preparing ours.

"My preference is for immediate cremation with no pre-cremation casket."

"Please cremate my body immediately with no fanfare or ceremony and give the ashes to my "Name & Title e.g. Spouse) . If he/she does not survive me, please dispose of my ashes appropriately."

 

[gwraigty]

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.

This may vary with state law, but in my state, only the legal next-of-kin has the right to make funeral arrangements, unless they sign over that right to someone else. The next-of-kin may or may not be the executor of the deceased's estate.

I was named executor in my mother's will. I was also her legal next-of-kin. The funeral director did not require payment up front. He said I would be getting a bill that was payable in 30 days, under the theory that life insurance usually paid claims within 30 days. (That isn't necessarily so, as I learned when settling my father's affairs.) Since my mother's estate was insolvent, that left me to pay out of my own pocket when the bill came.

I do agree with you that it isn't practical to wait for estates to be settled and that's why it isn't typically done.

 

[PatrickA5]

We recently preplanned and prepaid for our funerals and burials. In our state, the money is held in a trust account at a large regional bank. No insurance companies involved. We get an annual statement showing the balance, plus interest. We can withdraw the funeral expenses from the trust at anytime. The burial expenses can't be refunded, but can be transferred to another cemetery, if we moved. Our kids know of the arrangements, and basically just have to show up at the funeral home and make a couple of minor decisions about obituary, flowers, etc.

My dad had a prepaid funeral/burial at this same funeral home/cemetery that was paid for 25 years earlier. When the time came, it worked out great. As a test for the funeral home, we never mentioned that he had a prepaid plan upfront. When we met with the funeral home, they had everything laid out showing what he had prepaid 25 years earlier. He had a very nice funeral/burial at a cost of nearly 50% less than if we'd had paid for it today. It was a very simple process. We added a few extra items that we wanted.

 

[MrsHaloFIRE]

Embalming, to protect public health and funeral liabilities.
People kiss a deceased all the time.

My mother had my grandmother embalmed. It wasn't requested by gmother or required by state. I think it was emotions. 1k for emotions. I guess more money has been blown on worse things. Not my money so not my decision.