Two popular methods of financing funeral contracts are funeral contracts and funeral insurance. By creating a funeral fund or purchasing funeral insurance, you place the money with a third party (i.e. a trustee or insurance company) who manages the money and uses it to pay the designated suppliers at the time of your funeral. A popular option for prepaying your funeral expenses is the execution of a pre-funeral trust agreement. A loyalty contract before necessity is a financial contract with a funeral home, cemetery or cremation to pay for a funeral in advance. Everyone, regardless of age or health, can establish a pre-need confidence. The funds you put into your trust fund before needs will remain your money. And these funds can only be used for the purposes you indicate in your pre-need contract. When the time comes, your trust funds will be available to you, in accordance with the emergency advance contract you have arranged, to cover the specific funeral arrangements that you have approved.
This position of trust is not subject to succession. Another way is to simply create a special account where you save money to cover funeral expenses. It can be invested in any way you like and will not be stuck in any arrangement. Ideally, pair this with discussions with loved ones, so that each is aware of the desires of the other. But it`s surprising when you spend time reading the messages of those who sell funeral insurance before the need. An insurance seller states that pre-agreement funds are held on a large number of sites. Figure 1 shows that among the respondents who had paid for the funeral in advance, they had 30% of trust funds and 30% of life insurance funds. With life insurance, the benefit can be used for everything – it doesn`t have to cover funeral expenses. If your beneficiary decides to use the benefit to cover funeral expenses, they are not required to make arrangements with a particular funeral home. The cash advantage of a final spending directive can be used anywhere.
The regulation of the sale of funeral and funeral contracts is more complex than regulating the sale of many other types of consumer goods. A key branch of the period between the signing of the agreement and the need for goods and services described in the agreement is the main complication of the agreements reached in advance. For example, if trust funds are mistreated after the agreement is signed, such abuse may go unnoticed for years. In addition, it is often difficult to determine whether certain provisions of the contract have been executed (for example. B type of box), since the person who signed the contract is dead. But hold on tight. While it is indeed wise to save for funeral expenses and discuss funeral plans and preferences with loved ones, pre-need funeral insurance is not much for most of us. Therefore, since the rule applies only to persons who provide both funeral property and services, it does not apply to cemeteries or third-party sellers.