Vocab- Prearranged and Prefunded Funerals Flashcards
This form of insurance is fading fast from the funeral scene. It is life insurance payable in merchandise and service or as a credit toward merchandise and service, with a lesser benefit often payable in cash when the person dies and final disposition occurs outside the service area of the funeral establishment that services that burial association.
Burial Insurance
These synonymous terms indicate that the funeral which has been prearranged and prefunded will be provided whether or not the funds entrusted plus any accrual on them are sufficient to pay for the funeral selected regardless of its price at the time the death occurs.
Fixed or Guaranteed Price
Life insurance payable in cash to any designated beneficiary for use in any manner chosen, but not necessarily intended to be applied toward funeral expenses. Most of such insurances is provided by carriers not owned by a funeral home although many funeral funeral homes endorse a specific carrier or plan. When the proceeds of the policy are used to pay for the funeral, the funeral director receives an assignment of the future death benefit. In a few jurisdictions, the funeral director may be named the beneficiary. The funeral arranged can be either guaranteed or non-guaranteed.
Funeral Insurance
You can put property into this while you are still alive. When you die, the property automatically goes to your heirs without going through probate court which can be very time consuming and expensive. You can revoke this at any time fi you change your mind.
Living Trust
A legally binding document that dictates one’s wish not to be kept alive by artificial life support systems in the event of a terminal illness. By limiting treatment, this sets limits on hospital bills which can drain and even wipe out your assets so that there is little left in your estate for your heirs.
Living Will
Contracts which are portable provide that when death occurs and the funeral is conducted by a firm other than one with which there is a contract, the contract and funds will be transferred to the other establishment to be fulfilled.
Portability of a Contract
A funeral arrangement made prior to need involving the written specification of what is desired, as well as the possible selection of merchandise. It does not involve payment of money.
Prearranged
Prearrangements for a funeral and payment for it at the time of prearrangement or on an installment basis.
Prearranged and Prefunded
The providing of funds for a funeral in advance of need which are deposited or placed not necessarily in association with a prearranged funeral.
Prefunded
A term used in reference to any aspect of prearranging, prefunding, or preplanning. It encompasses the entire subject.
Preneed
An individual or firm providing the services, facilities, and merchandise for the funeral which has been prearranged and/or prefunded.
Provider
A person or firm who contracts to have available funeral services and/or merchandise. May or may not be a provider.
Seller
Monies deposited for a funeral arranged and contracted for an advance or need. Said funds earn interest which could offset the effect or inflation on the price of the selection made. The contract could be either guaranteed or non-guaranteed.
Trust Funds
A legal document that dictates how your property is to be distributed after death. It may also designate guardians for your children. Must pass through probate court before your estate can be distributed to your heirs.
Will
