Considering preneed insurance? It can be a wise financial choice and an excellent way to protect your loved ones. While often less well-known than other types of insurance, preneed insurance offers policyholders control over their final expenses. It provides a way to protect loved ones, not just from the financial burdens of planning a funeral but also from many of the emotional and organizational burdens as well. If you’re considering preneed insurance, here are a few questions you should consider.
What Exactly Is Preneed Insurance?
Preneed insurance is a type of insurance policy specifically designed to cover funeral and burial expenses. It allows individuals to select the exact items and services they desire with a local funeral home and prepay for these funeral services. This process relieves your loved ones of the cost of the funeral services and the burden of planning. It also ensures your wishes are known, and your loved ones aren’t left guessing what you would have wanted.
How Does Preneed Insurance Save Me Money?
Pre-planning your funeral or memorial service with preneed insurance allows you to lock in costs at today’s pricing. Your preneed policy will cover the cost of the services you select, even if the funeral home’s prices rise in the future. Your policy premiums are set at the time you purchase your policy and won’t increase. This is a great way to protect against inflation and make sure your services will be covered. Additionally, by selecting service details in advance, your loved ones will avoid rushed decisions and emotional overspending, reducing the cost of services.
What Does Preneed Insurance Cover?
Preneed insurance covers the cost of goods and services for funerals, memorials, and burials. Preneed insurance policies can be tailored to your individual preferences, allowing you to personalize your funeral arrangements according to your cultural, religious, and personal beliefs. Your policy and coverage are tied to the exact items and arrangements you select.
What Additional Benefits Does the Policy Offer?
Preneed insurance can provide additional benefits you would not receive by paying for your funeral at the time of death. Policies may offer coverage if you pass away before the policy is paid in full. Security National preneed policies include our Family and Pet protection coverage. This additional coverage will pay a benefit if you have a pet or dependent child pass away before you. We also offer optional travel plans, which will cover the cost of transporting you back to your preferred funeral home if you pass away while traveling or visiting family.
Do I Need Preneed Insurance If I Already Have Life Insurance?
Preneed insurance is a great option even if you already have existing coverage. Unlike other types of life insurance, your coverage won’t expire or reduce after a certain age. Preneed policies ensure you have funds available at the time of your funeral services. Other types of life insurance may take weeks or even months to pay your claim and may require paperwork such as the death certificate to file. Preneed insurance means you’ll be able to schedule funeral services without delays. Additionally, a preneed policy means your family can use funds from other policies to pay for medical expenses or to build wealth.
What Happens If I Move?
While regulations vary by state, in most cases, you can transfer your preneed insurance policy to a different funeral home location. Your new funeral home and your preneed company can help transfer your policy. If you suspect you may relocate in the future, ask your preneed agent for additional details when setting up your policy.
What Should I Expect When Purchasing Preneed Insurance?
When purchasing preneed insurance, you’ll meet with a preneed agent or member of the funeral home staff. They will walk you through the funeral options available to you and help you select the services that are right for you and your loved ones. Once you have made your selections, they will help you select a payment plan that works best for your budget. Most preneed insurance is paid through affordable, monthly payments.
Preneed insurance offers families a unique opportunity to plan and alleviate funeral arrangements’ emotional and financial burdens. With benefits ranging from price protection to customization and ease of planning, preneed insurance offers a variety of benefits to you and your loved ones. If you’re interested in pre-planning, contact your local funeral home or visit Security National’s website to learn more.
