Funeral Services, Cemetery Burial, Cremation Arrangements; Choices for Paying the Costs
A Final Arrangements Information Sheet

Final arrangements for a funeral service, the cemetery or even a cremation will eventually require the expenditure of money. Although, we at Final Arrangements Network strive to show how this can be done for up to 50% less than you might otherwise spend by preplanning or smart consumer purchasing, it still will mean someone will have to pay someone. 

Insurance both general life, whether term or whole life, is only one type available for funding your final arrangements. You might find that you would prefer to not only preplan those final arrangements but also begin paying for them as well through a funeral home and or a cemetery. Funeral homes often have access to a form of insurance known as modified whole life. This type of insurance would allow you to pick the services and items for your funeral years in advance, set up a monthly premium within your budget and therefore lock in the cost of that portion of you final arrangements. Most funeral directors or their preplanning specialists could give you detailed information on just how they can set this up for you and your family.

Another route for funding is to create a separate savings account at your bank. You can set aside up to $1,500 without Social Security counting these funds as an asset. The exclusion of this money from your assets can be critical  in some situations of overwhelming medical costs associated with a long term illness where all but the bear minimum of assets are allowed or it could jeopardize Medicare eligibility. The term "Spend Down" is often the term heard for situations like this. Having what is known as a BOD account, Benefits On Death account, avoids these set aside assets ever being counted as an asset and could ease the financial burden upon death for the family faced with not only huge medical bills but also a funeral and burial which must be paid. You should check with your bank and ask them about this type of account, also know as Totten Trusts, if you are interested in this little known mechanism for funding final arrangements in advance.

Social Security has another mechanism that also could be used with regards to burial items. According to current law an individual is allowed to purchase a burial property, the marker (i.e. memorial, monument, grave stone), the Opening & Closing service of the grave, vault (if required by the cemetery) and casket or urn without these being counted as assets of the individual. This does not extend to funeral services unless those services are bought in conjunction with a irrevocable contract agreement with the funeral home that can be proved to exist. The modified whole life some funeral homes offer, as discussed above, generally qualify for this exclusion but only if the contract is irrevocable.

There are also specialty term insurance policies generally known as "Burial Expense Insurance" which agree to pay a specific dollar amount upon death once a two or three year waiting period has been fulfilled and provided further the premiums have been paid up through the time of death. For some older individuals this is the only insurance available for them to buy because they are the only ones that will accept applications from older individuals and often don't have a physical examination requirement.

Once you have used The Final Arrangements Network's tutorials and planning programs you should start to get an idea of how much your final arrangements will cost. You then will be in a position to determine where the funding, now or then, will have to come from to carry out your wishes. Any of the above or combination of them should give you a secure feeling that your death will not put undo financial strain on your family.

Final Arrangements lists here some sources for further information on insurance and funding mechanisms for your final arrangements. We will continue to seek other sources and we are certain that companies who provide these types of services will ask to be listed so keep this page in your favorites and refer back from time to time as you develop your final arrangement plans.  Here are some sources for information on funding and insurance we have found or have asked to be listed below.

New York State Funeral Directors Association - Preplanning a Funeral, What is a Preplanned Funeral? ... Why Preplan a Funeral?

MSN-Money - Retirement and Estate Planning. Articles, calculators and answers to common questions help you plan the retirement of your dreams.

New York State Department of Health - If you are planning a funeral, you have many decisions to make. You may feel overwhelmed or confused. You may have questions. Read this brochure to learn more before you make any commitments or decisions.

Insurance.com - This one stop, online insurance resource allows you to select the right insurance at the right price for you.

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