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Cemetery charges and the cost of a monument or marker are extra charges,
over and above the cost of the funeral. Inflation will increase these
costs over time; in fact, average funeral prices have tripled in the last
15 years.
A funeral is an essential expenditure, and a little planning will eliminate
the uncertainty of costs and payment. If you don't plan for funeral expenses,
you run the risk of your family having to ask friends and relatives to
share an unexpected financial burden, which can put everyone in an embarrassing
and uncomfortable position. And if you borrow money, it has to be repaid.
Here are some options for financing funerals.
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Pre
Need Insurance
Preneed plans are designed to cover the expenses associated with
your death and funeral. Preneed insurance companies such as Homesteaders Life Company
offer several payment options to give you flexibility. (full
article)
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Frequently
Asked Questions about Preneed Insurance
What is preneed? What's a preneed insurance policy? How does it
differ from the other options? The answers to these questions and
more are here in this article. (full article) |
Annuities
Generally, annuities allow for the money you pay to be invested. Interest
is earned which will, over time, increase the amount of money available
to pay for your funeral. (full article) |
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Bank
or Funeral Trust
A funeral trust is similar to a savings plan. The earnings on funeral
bank trust funds are taxed every year, and paid either by the family
or by the trust itself. (full article)
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Life
Insurance
A traditional life insurance policy can meet several needs--pay off
loans, fund education costs, and provide for living expenses. (full
article) |
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Savings
Accounts
A long illness can easily deplete short-term savings, while taxes
and early withdrawal penalties can reduce long-term savings. (full
article) |
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