Preneed Insurance


What Is Preneed Insurance?

Many people prearrange their funeral so their family won’t need to worry about making those arrangements at the most difficult time. When you take the step to prearrange your funeral, the last thing you need is to worry about whether your funds will be there when your family needs them.

Preneed insurance is a whole insurance policy designed to prepay specific services and merchandise in a funeral home you have selected. The funeral home has agreed to provide the services at specific prices, and they are guaranteed no to increase in the future. This can be beneficial for someone who is not planning to move to another location any time soon, and want to make sure his/her costs are protected against future inflation.

Benefits and Characteristics

  Whether you are prepared to pay for your prearrangement up front or want to make payments over time, our agency can provide the advantages of funding through preneed insurance:

  • Because the benefit amount of your Preneed policy is expected to grow each year, many funeral homes will guarantee the price of the goods and services they provide. This means that you purchase the policy based on the amount that your funeral would cost today, and the funeral home agrees to accept the policy benefit amount to pay for your funeral expenses at the time of need, no matter how much funeral prices rise.
  • Under certain circumstances, the policy may be excludable from your assets when qualifying for Medicaid.
  • If you move away from your current area, your policy can be used to fund arrangements with a funeral home in your new home town.
  • If you have other insurance policies that are intended for specific purposes, such as education or living expenses, your family will not need to use them to pay for your funeral.
  • You can choose to have your Preneed policy pay your funeral home directly, so your family won’t be faced with details such as finding the policy or completing forms at a time when they need to be taking care of each other.

Our agency offers Preneed insurance with a single premium payment or with payments spread over three, five, seven or ten years.

  • The Single Pay plans are guaranteed issue, with no health questions asked.
  • The Multi-Pay plans are issuable based on a few simple health questions on the application, and are available with an immediate full death benefit or, for those with health issues, a modified benefit for the first one or two years, depending on the policy issued.