Benefits of Pre-arrangement
Pre-arrangement, the thoughtful decision
Today, more people are recognizing that planning a funeral in advance of need demonstrates love and consideration toward their family members. It is a thoughtful decision that reduces the stress of indecision and uncertainty when death occurs.
The following information has been prepared to answer some of the questions we frequently received about pre-arrangement.
Why do people pre-arrange a funeral service for themselves or a family member?
There are many good reasons. Some plan ahead because there will be no one who is capable of making responsible decisions. Others have definite preferences concerning their funeral service, and they want their families to be informed and involved in those decisions.
Many people pre-arrange because they like the peace of mind knowing there will be adequate funds to cover funeral expenses. Also pre-payment can provide real benefits when you are applying for Medicaid in the U.S.
Most importantly, pre-arrangement guarantees that rational decisions can be made ahead of time without the usual urgencies when death takes place.
What steps are involved?
After you determine your funeral preferences, we will explain your options and guide you in establishing your own plans. You should find the advice of your family, clergy, and your funeral director especially helpful when considering the options. We will record certain vital information and gather documents for the required forms.
Next, you can select a casket, burial vault, and other merchandise associated with the services. Finally, you may pay for the services and merchandise ahead of time through our funding program.
What will the pre-arranged funeral service cost?
The cost is a matter of your choice. All of your selections and options are featured in our itemized pricing guide. This guide provides factual information concerning each item and its price.
Funding the pre-arranged service is a choice most people make to ease possible financial pressures on their family. Pre-funding allows you to pay for the funeral service at current prices. As your plan grows over time, it offsets inflation and should provide adequate funds for the future cost of the funeral.
Increasing Death Benefits
Reduce the impact of inflation, which would otherwise increase the cost of your funeral.
How is Pre-Planning Done?
Our funeral home staff member will meet with you at a time that is convenient, and assist you in recording your wishes. You choose everything you want for your funeral: the type of funeral service, casket, burial vault, music, and flowers. Important obituary information will be recorded. Once you have made your selections, you will learn the payment options available to you. A record of your selections will be kept on file at the funeral home until needed.
What is Pre-Financing?
Pre-Financing is the act of setting aside funds in funeral trust accounts or funeral insurance products. For your security and by regulation, all monies are deposited into these accounts and do not remain in the funeral home’s operating account. If not irrevocable, trust accounts can be withdrawn if the family elects to cancel the pre-arrangement. Insurance products can be cancelled as well with return of the surrender value if after 30 days if not irrevocable.
How do you Pre-Pay for a Funeral?
You may select one of two ways to pre-pay for a funeral.
Pre-Payment in Full
The first method is to make payment in full. This will guarantee the price of the funeral and merchandise selected.
Payment Over Time
The second method is to make periodic payments.
How is Pre-Funding Done?
Our Funeral Home staff member will meet with you at a time that is convenient, and assist you in recording your wishes. You choose everything you want for your funeral: the type of funeral service, casket, burial vault or urn and music. Important obituary information will be recorded. Once you have made your selections, you will learn the payment options available to you. A record of your selections will be kept on file at the Funeral Home until needed.
Why Plan Ahead?
Planning in advance of need provides peace of mind. The death of a loved one is a time of great loss and advance planning can reduce stress for your family with the knowledge that your preplan has been completed. This allows your loved ones to devote more time to coping and understanding the loss and less time concerned with funeral arrangements and financial details.
Merchandise and Funeral Costs
Your Funeral Director understands that your personal choices are of the utmost importance. Your Funeral Director will meet with you to show the quality merchandise, assist you with the selection of the necessary merchandise and help you make the proper arrangements. Through preplanning the cost of a funeral will be controlled. Merchandise selection during your preplanning helps insure that you do not exceed what you want to pay. Pre-payment also offsets the risk of rising funeral costs in the future due to inflation.
About Homesteaders Life Ins. Co.
Reed Funeral Home chooses to funds most pre-arrangements with Homesteaders Life Company. Founded in 1906 for the express purpose of providing funds for “final expenses,” Homesteaders has emerged as a national leader in funeral insurance funding. A.M. Best Company’s affirmation of their secure rating is with a “positive outlook.” They state, “The rating of Homesteaders Life Company reflects the company’s strong market position in the pre-need life insurance industry, its consistently positive net operating performance and its enhanced risk-adjusted capitalization.” This commentary offers assurance during a time when general economic uncertainty is looming. Homesteaders differentiates itself by maintaining a customer-focused discipline that requires careful financial management to sustain long-term growth.
Begin using our Pre-Planning Form