Financing Options for Pre-Planning

Pre-Funding Funeral Costs


BANK FUNDING OR INSURANCE FUNDING

WHAT’S THE DIFFERENCE?


Bank Funding


*Death benefit equals the deposit plus interest earned.

*Interest earned is taxable.

*IRS reporting with 1099 form.

*Prices are not guaranteed.

*No guarantees or minimum on interest rate earned (you must subtract tax paid on interest for true interest rate).

*Three (3) trust accounts needed for complete funeral.
- Funeral Trust
- Casket Trust
- Vault Trust

*Limits - $3,000 Funeral Trust. Cash advance items may NOT be funded as per MA/SSI requirements.

*Meets MA/SSI requirements



Insurance


*Death benefit is immediately “bumped up” based on age and health.

*Death benefit increases are not taxable.

*No IRS reporting.

*Prices can be guaranteed so that there are no out-of-pocket expenses to the family at time of need.

*Annual increase of death benefit is declared by the Board of Directors.


*Only one (1) policy needed for all funeral costs.


*No Limits – Cash advance items may be pre-funded as long as funds are designated for final expenses only.

*Meets MA/SSI requirements.

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