It is important to think about what kind of service you would like when you die. You need to let your family and your funeral home know what type of funeral you desire. Making plans in advance helps to ease confusion and decision making at the time of need for your surviving family.
We offer two different ways to keep your service desires:
With non-funded pre-arrangements, you simply let the funeral home know what your wishes are when you die. They will keep a record of the information that they can share with your family when you die. No money is paid and the arrangements have no legal mandates.
Simply put, funded pre-arrangements are the arrangements you make with the funeral home to pay for your funeral in advance.
We offer two ways to do this:
INSURANCE FUNDED PRE-NEED CONTRACTS
An insurance funded contract will cover the full cost of the contract funeral if the purchaser were to die before the contract is fully paid off.
In order to qualify for an insurance funded contract, the purchaser/insured must answer certain health questions asked by the insurance provider. If a person is in poor health, and answers the questions accordingly, and dies within the two year contestability period from date of contract issue, the insurance company has the right to not pay the funeral bill.
Monthly payments are higher on an insurance funded contract depending on the age and health of the insured.
The contracts can be paid out over 3, 5, or 10 year plans.
ANNUITY FUNDED PRE-NEED CONTRACTS
An annuity contract is what we call a "dollar for dollar" contract. It can be paid monthly in payment amounts of the purchasers choice until the contract is paid off. But, only money paid into the policy will be put towards the funeral at time of need. In other words, if the purchaser pays in $1,000 on a $2,000 policy and then dies before paying the balance, only the $1,000 paid in will be credited towards the funeral bill. The unpaid balance of the contract will be due at the time of need.
This option is good for people in poor health or people who can't afford a high monthly payment but want to start paying for their funeral now.
The Texas Department of Banking provides consumers with additional information on the purchase of prepaid funeral benefits. See their website at www.prepaidfunerals.texas.gov