| Question #1 | Q. Can I make payments?
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| Answer: | A. If you qualify (regarding age and health) you can choose from a variety of payment options. If a death should occur while making payments, the unpaid balance would not have to be paid. It is totally insured.
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| Question #2 | Q. What happens if I move?
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| Answer: | A. Your funeral arrangements, details and any money prepaid would transfer to any funeral home you wish to use. |
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| Question #3 | Q. What is a Prepaid Funeral Contract?
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| Answer: | A. A prepaid funeral contract is a legal agreement which says you will pay now for funeral services that will be required in the future. This contract may include the funeral, burial or cremation and funeral merchandise or other services.
A prepaid funeral contract may be:
Revocable (you are able to cancel the contract)
OR
Irrevocable (you are NOT able to cancel the contract, but you are able to transfer it to another funeral home)
The decision whether or not you should buy an irrevocable funeral contract is entirely up to you, but here are some things to consider:
If you eventually will be qualifying for Medicaid and your assets are more than the asset limit you’re allowed to have, you may need to spend down some of those assets. To spend down means to reduce your assets. One way to do this is to buy a prepaid funeral contract. A prepaid irrevocable funeral contract is not counted as an asset for Medicaid purposes.
Buying a prepaid funeral contract allows you to make your own funeral arrangement in advance which relieves your loved ones from the emotional burden of decision making at the time of death.
Prepaying the funeral will lock in services and merchandise at today’s prices and protect it from increases due to inflation.
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| Question #4 | Q. What if death occurs away from home?
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| Answer: | A. More people are away from home than ever before for business, family visits and recreation. By purchasing a Travel Assurance Plan, if you are more than 75 miles away from home your travel arrangements and expenses will be paid to bring you back home. |
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| Question #5 | Q. What are the advantages for pre-planning with respect to nursing home/extended care facilities?
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| Answer: | A. Preplanning is advantageous for everyone because of the stress and confusion it eliminates at the time of death. Pre-planning for someone in extended care is imperative not only for the emotional advantages, but for the financial advantages as well. A pre-paid funeral is considered a non-countable asset which shields the funds when qualifying for Medicaid assistance. |
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| Question #6 | Q. What's the Difference Between a Standard Life Insurance Policy and Preneed Funeral Insurance; Aren't They Basically the Same Thing?
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| Answer: | A. Traditional life insurance is intended to provide for a broad range of your survivors' future financial needs provide income, cover education costs, pay off a mortgage, and the like. Preneed funeral insurance, on the other hand, is specifically intended to cover only the predetermined costs of a pre-arranged funeral contract.
In addition, there are several other important differences between the two types of coverage. For example:
With regard to benefit distribution at the time of death, preneed funeral insurance is payable immediately to the beneficiary (generally the funeral home) upon the policyholder's death; traditional life insurance policy benefit distributions may require several weeks to be paid by the insurance company. |
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| Question #7 | Q. Do I Actually Need Preneed Funeral Insurance; Can't I Simply Use Some Other Source of Funding?
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| Answer: | A. Preneed funeral insurance is a choice, not a requirement. Washington also allows preneed funeral arrangements to be financed with bank trusts. However, trusts, unlike funeral insurance, may be liable for federal and state taxes. Our plan also has the following benefits:
Preneed funeral policies are tied directly to the costs of a pre-arranged funeral. All of the services and merchandise that you select will be completely covered by your insurance if your funeral home have guaranteed the price of your funeral.
Second, there is no tax liability on the death benefit to your surviving family members.
Third, the benefit of your preneed funeral insurance is payable immediately to the funeral home at the time of your death.
Fourth, there is little or no underwriting required to apply for a preneed policy. Our funeral directors, not anonymous underwriters, make the decision.
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| Question #8 | Q. Can't I just specify my arrangements in my will and let my estate take care of the expense?
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| Answer: | A. Wills are not probated until well after death, and usually not until after the funeral services. Additionally, someone will have to qualify as executor or administrator, which may delay further any actions specified in the will from being carried out. If your wishes differ from those of your family or heirs, stating your wishes clearly in a Preneed Funeral Policy may be the best way to ensure they are carried out. |
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