Wednesday, October 1, 2014

Death & Marriage - Why Should You Prepay Your Funeral?

October is Founder's Month here at Security National Life, and our Vice President Chief Marketing Officer Jason Overbaugh gave us an insightful presentation on the background of the company and it's origins. One point he talked about during the presentation really stood out to me. He presented us with the average costs of a wedding and a funeral. In a recent survey conducted by The Knot, it was revealed that the average wedding is now about $28,858. However, bear in mind that weddings cost more in large urban areas. Currently, the average funeral in the United States costs anywhere from $7,000 to $10,000. This range includes the services at the funeral home, burial and installation of a headstone. And keep in mind that prices may vary greatly, depending on different funeral homes and their location in the country.

A wedding, and a funeral are two of the biggest events we will have in life, yet they are met with a very different sentiment. Both are a big financial expense, yet one is a happy and joyous occasion, while the later is met with grief and more often than not burdens for others. When death is a non-negotiable in our lives, and 40 to 50 percent of marriages in the United States end in divorce, it makes you wonder why as a culture we hate to spend money for a funeral service, but don't hesitate to throw tons of money into a wedding? This is the question Overbaugh raised. A funeral is a celebration of a life, a memorial for a loved one. But more often than not, people are not able to provide the type of services they would like to for their love ones because of the high costs associated with a funeral.

People plan and save for a lot of things, weddings, college, houses, retirement, etc. But most people aren't saving or planning for their funerals. In fact, I don't think most people think about it until it has happened. Now please excuse my lack of tact, but when the only real sure thing in this life you can count on happening, is the fact that you will die, it doesn't make any sense to not plan and save for your funeral. When you don't save for it, who has to pay for it? That financial burden now goes to your grieving family, making a sad situation even more stressful. Planning a funeral is not something you want to do at the spur of the moment, in your height of grief. As a population we are going to really see the effects of this stress once the next generation of baby boomers leave the golden years.





So why should you prepay and plan ahead for your funeral? Proper planning for your final wishes is more than wise, it is a thoughtful decision to help your family during a difficult time of loss. But it doesn't just benefit the loved ones you leave behind, you can actually save money by prepaying and planning with funeral homes, by locking down prices for services and products. Preneed life insurance is tied directly to the costs of a prearranged funeral or cremation. All of the services and merchandise that you select may be completely covered by your insurance if your funeral home has guaranteed the price of your funeral.Second, there may be no tax liability on the death benefit to your surviving family members. And the benefit of your preneed life insurance policy may be payable immediately to the funeral home at the time of your death.

What is preneed life insurance?
Preneed life insurance is an insurance policy whose benefits cover the cost of the predetermined expenses of a funeral, cremation or burial. The expenses typically include standard funeral home services, funeral merchandise, church services and even burial services and merchandise. The purpose of preneed life insurance is to set aside funds for your funeral, before the need arises, thereby protecting your loved ones and your financial assets.

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