Funeral Trust vs. Final Expense Insurance vs. Pre-Funding

There is a lot of talk around today on whether you should purchase final expense insurance, pre-fund your funeral at a funeral home, or even purchase an irrevocable funeral trust. With all these different types of insurance out there today that it can be confusing to choose which route to go, especially when it comes to funding your funeral. Most people today don’t want to leave the burden of their funeral expenses for their children or family to have to pay when the time comes. When deciding whether Final Expense Insurance, pre-funding at a funeral home, or an Irrevocable Funeral Trust is better for you there are a couple of major factors you want to look at:

  1. When you purchase a Final Expense policy, you are purchasing a small life insurance policy. It might be a term policy or a permanent policy, the only difference are these policies are typically smaller in value, up to $20,000. These Final Expense policies are underwritten just like any typical life insurance.
  2. An Irrevocable Funeral Trust isn’t your normal life insurance policy. It can either be a single premium or a multi-pay policy. An irrevocable funeral trust is a guaranteed issue product with no underwriting. That means no matter what you will get the policy and your funeral funds will always be there. The Funeral Trust is issued up to the age of 99.
  3. The main difference between a Final Expense policy and an Irrevocable Funeral Trust is that in most states the Funeral Trust is Medicaid exempt. Since Final Expense plans can gain cash value over time and if Medicaid is needed are subject to assets under Medicaid rules. (Please consult an Elder Law Attorney in your state for specific Medicaid rules.)
  4. Paying money on a Final Expense policy and having it at risk of being lost is something no one wants to have happen. Protect your assets now and insure that funds will be there when the time is needed and take the burden off others.
  5. Unlike pre-funding at a funeral home, with the irrevocable funeral trust you are not locked into a specific funeral home and you are able to use these funds anywhere in the country.

The Irrevocable Funeral Trust is the best way out there to preserve and protect your assets that you want to be used for a funeral. Nobody knows what the future holds and because of that you should do everything possible to protect your money.

For more information on the Irrevocable Funeral Trust please call DelcoUSA at 877-336-7782 or visit our website at www.delcous.comDelcoUSA Logo