7: Preneed Flashcards
What is a pre-need?
Pre-arranging your own funeral
Arrangements which have been completed by an individual prior to need
What are reasons why a preneed is good?
Provides peace of mind
Relieves your loved ones of unnecessary concerns
Reflects your expressed wishes
Avoids financial burden on your family
Can do payments
What are the type of Preneed Arrangements
Prefunded
Preplanned
What is prefunded?
Includes funding or prepayment
There’s a 3rd party which has insurance in case something happens to funeral home
If too many payments missed, contract lapses, no longer has to be honored by Funeral Director, payment can also go up (previous payments included tho)
What is preplanned?
Does not include funding or prepayment
“Written plans” only
What are the types of preneed contracts?
Revocable
Irrevocable
Guaranteed
Non-Guaranteed
What is a revocable preneed contract?
Contract may be terminated by purchaser at any time prior to death
Refund of money paid as prescribed by state law (money back)
What is an irrevocable preneed contract?
Contract cannot be terminated or canceled (no money back)
What is a guaranteed preneed contract?
It locks in guaranteed prices
Costs will not exceed original amount of preneed contract at any time of death
For extra / new stuff (cash advances - which can’t be included) can be charged at new price
What is a non guaranteed preneed contract?
Amount prepaid plus any interest will be credited to the balance due
Current prices will apply
Happens when contracts lapse
Who receives the preneed money?
A 3rd party bank / insured plan
What isn’t covered by a preneed plan? And why?
Cas advances because they’re from a 3rd party
