HELP! What happens if my funeral home goes out of business?
How prepared is too prepared? The reason people pre-plan their funerals is to prepare for the inevitable.
Yet what if a funeral home ends up closing its doors forever?
It’s an unexpected factor most of us don’t account for. After all, many funeral homes have been around for generations, offering a much-needed service to their communities.
But not to fear. You and your loved ones won’t be left in the lurch. Even if a funeral home goes out of business, your plan and your pre-paid funds can be protected.
Why people pre-pay
There are so many important benefits to pre-planning your funeral.
You can take care of tasks and decisions ahead of time so your final wishes are clear and your loved ones can focus on connecting.
But pre-funding your funeral has many benefits as well:
All funeral costs are addressed now, not when your loved ones are grieving.
You pay today’s prices, countering the effects of inflation.
Your family won’t be burdened with financing your funeral.
Your funds can be protected by an insurance policy or trust.
The funds are available immediately, not tied up by your estate or subject to delays on life insurance payouts.
Pre-funding simply gives you added peace of mind. There’s the comfort in knowing you’ve taken care of the details of your funeral plan and that you’ve covered the cost completely.
Is this peace of mind negated if the funeral home goes out of business?
Not if you ask the right questions.
Can my plan be transferred?
If you choose to pre-fund your funeral, one of the questions you’ll want to ask a local advance planning expert is this:
Is my plan portable and can it be transferred?
You’ll want to clearly understand whether moving away or choosing another funeral home will keep your plan intact.
Next, there’s the question of whether transferring your plan will result in any additional costs or financial losses.
This is something you can ask during an over-the-phone consultation with one of our friendly advance planning staff.
Portability is also why pre-funding with a preneed life insurance policy is a practical and savvy option.
Preneed insurance
Preparing for the unexpected is what insurance is all about.
Several decades ago, as consumers became increasingly interested in pre-arranging funerals, preneed life insurance products were developed to help fund them. The advantage of having a product specifically designed for this purpose was that the funds would be backed by the insurance company’s assets.
When your preneed policy is written with a highly rated insurance carrier, your funds are secure because the company is uniquely set up to weather the push and pull of the economy.
Finally, pre-funded funeral plans are often portable, meaning you are often able to transfer your plan to another funeral home should you move.
Or if the funeral home goes out of business.
It’s still important to ask about portability when you’re making your plan, but entrusting your funeral plans to a funeral home tied to an insurance carrier is a great safeguard against the unexpected.
Create your plan
It’s completely natural to put off pre-planning a funeral. There is a lot to think about, and questions like this make procrastination that much easier.
But a good pre-planning expert can answer them. They’ve fielded every question under the sun, some that many folks wouldn’t even dream of asking.
They can help you craft a funeral plan, walk you through your pre-funding options, and provide the answers you’re looking for.
