UNDERSTAND WHAT THESE THREE THINGS ARE!
LIFE INSURANCE = It is used to pay out to the family or beneficiary when one dies, if it is kept up to date. The "beneficiary" is who was chosen by the deceased for the policy to pay out to. This insurance will pay out a cash amount when a person dies, you can use part of it if you like to cover funeral expenses, but YOU DO NOT have to use all of it. REMEMBER THAT! Life insurance takes sometimes about 30 plus days to pay out to the family or beneficiary. Life insurance is assignable should you choose to use it for funeral arrangements and the death is not contestable (questioned as to the manner of death by the insurance company).
PRE-NEED FUNERAL INSURANCE = It is used to pay for a funeral at any Funeral Home in the deceased name, usually written for a specific amount and can cover the expenses of a pre-selected funeral arrangement , nothing more. Pre-need insurance is not assignable, or it should not be, if the funeral home is telling you there is a fee, they are ripping you off. Pre-need funeral insurance pays out to the funeral home at their leisure. IF YOU CHOOSE TO USE A POLICY AT A MORE AFFORDABLE LOCATION OTHER THAN THE LOCATION IT WAS WRITTEN AT, YOU WILL GET MORE FOR THE POLICY THAN YOU WILL AT THE LOCATION IT WAS WRITTEN AT, MAYBE EVEN SOME REFUNDED.
Life Insurance POLICY ASSIGNMENT = The insurance "Assignment" is nothing more than the process and "fee" charged by the funeral home to get another company to pay out the charges up front from the policy to the funeral home. This company will verify the policy is good, you will sign a few papers, notarized to ensure this is you and the assignment company will pay the funeral service. When the policy pays out in 30 or so days, the insurance company will pay out the funds to the assignment company that paid the funeral home. You will get what is left, if there is anything left. That is an assignment. A funeral homes assignment fee is nothing more than their fees to do the paperwork. The rate has snuck up to 20% at some funeral homes. That is $1,700 on a $8,500 funeral. That's crazy just to notarize a document and FAX it. That's just greed.
For more information on how you can pay for a funeral, click on the following link and read: "How are we going to pay for this funeral"
RULE NUMBER ONE -
|Do you know what to say behind these doors?|
REMEMBER! The more affordable the funeral service you pick, the more your family will get back in dollar amount from the insurance company. This is YOUR CASH in your pocket.
Question these items if they show up on your contract:
- A very large assignment fee (more than 10%)
- Cemetery fees that YOU can pay for (Never pay through a funeral home unless you must)
- More flowers than usual
- The funeral homes referred minister
- A nicer , much more expensive casket (Be weary of up selling)
- Funeral clothing, suits, dresses
- Deceased haircuts, shaves, hairstyles, nails, mustache trim, beard trim
- Cremation Jewelry
- Cremation casket (consider the rental casket always)
- Limousines, more than one
- A Reception (the funeral home will get a cut if recommended or included)
- More staff for a visitation (will their be a large crowd? we will need to bring in more staff then)
- More than one visitation
- Overtime fees
- Luxury register books
- Luxury Memorial Folders
- Trinkets, picture mugs, Such as encouraged Family Heirlooms
- Memorial ribbons
- Any type of paid grief counseling
- any type of additional administration fees
- FAXing fees
- Phone call fees
- Notary fees
- Utility vehicle for doctors office work
- Mileage fees
- Home visit fees
- Itemized charges for letters/correspondence
- Specialized storage fees
- Refrigeration if the body is embalmed
- Questionable junk that has nothing to do with the services provided at all
Once again, REMEMBER! The more affordable the funeral service you pick, the more your family will get back in dollar amount from the insurance company. This is YOUR CASH in your pocket left to you, not the funeral home.
RULE NUMBER TWO -
The assignment percentage charged is for the whole price you pay for services, so if you include cemetery charges on the same contract, that could amount in the hundreds of dollars more, BE WEARY OF THE COUNSELOR TELLING YOU THAT THEY CAN GET YOU A LITTLE "SPENDING CASH" OUT OF THE POLICY SO YOU DON'T HAVE TO WAIT THE 30 OR SO DAYS FOR THE POLICY TO CASH OUT! you will be paying 10% to 20% or more on the dollar.
AND REMEMBER! The more affordable the funeral service you pick, the more your family will get back in dollar amount from the insurance company. This is YOUR CASH in your pocket. It comes back to you! It is yours to spend on other things you may need, not some funeral homes high overhead or sports car payment.