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Options for Financing Funerals

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A funeral is an essential expenditure, and a little planning will eliminate the uncertainty of costs and payment. If you don't plan for funeral expenses, you run the risk of your family having to ask friends and relatives to share an unexpected financial burden, which can put everyone in an embarrassing and uncomfortable position. And if you borrow money, it has to be repaid.

Here are some options for financing funerals.
Gallagher Funeral Home
Pre-Need Insurance
Preneed plans are designed to cover the expenses associated with your death and funeral. Preneed insurance companies such as Pekin (offered at our funeral home) offer several payment options to give you flexibility and also can be made irrevocable.
Gallagher Funeral Home
Generally, annuities allow for the money you pay to be invested. Interest is earned which will, over time, increase the amount of money available to pay for your funeral.
Gallagher Funeral Home
Life Insurance
A traditional life insurance policy can meet several needs--pay off loans, fund education costs, and provide for living expenses, as well as funeral expenses.
Gallagher Funeral Home
Bank or Funeral Trust
A funeral trust is similar to a savings plan. The earnings on funeral bank trust funds are taxed every year, and paid either by the family or by the trust itself. Funeral Trust's can be made irrevocable, which means the money in the trust does not count as an asset. This can help when qualifying for Medical assistance or SSI.
Gallagher Funeral Home
Savings Account
Beware with this strategy. A long illness can easily deplete short-term savings, while taxes and early withdrawal penalties can reduce long-term savings.

For more information on funeral pre-planning and pre-funding, contact us.