Funeral Expense Trust Funding Choices
Timely Access
There are various methods of handling traditional final expenses, but all of them share the problem of access. Funeral Expense Trusts cut out the need to wait for a death certificate, benefits from a swift and straightforward claims process, and mitigates out-of-pocket spending for family members.
- No waiting for death certificate
- Fastest access to segregated funds
- Funds are available within 24 - 48 hours
Scott Richardson
Wholesale Marketing Director
(608) 898-0884
srichardson@elderlifegroup.com
Straightforward Process
- Avoid time-consuming hurdles and legal complexities regularly found in the traditional final expense industry
- Efficient and fast procedure
- Nationwide acceptance in all 50 states.
No Out-of-Pocket Spending
- Within the final expense industry, out-of-pocket spending is a common problem for family members.
- 44% of families say that final expense procedures caused divides or conflicts within their family.
- Families are less likely to be pressured into over-spending during a sensitive time.
Timely Access
- No financial burden to loved ones. Beneficiaries will be relieved of potential out-of-pocket funding of final expenses while waiting for claims to settle.
- Mitigate additional stress. Beneficiaries are spared the awkward process of family reimbursements for out-of-pocket funding.
Traditional Final Expenses vs. Funeral Expense Trusts
Other Final Expense Options:
- Life Insurance
- POD / TOD
- Estate Settlement
- Pre-Paid Funeral Planning
Life Insurance
The most common hindrance to access of funds is perhaps life insurance. The claims process for life insurance cannot be initiated until after a death certificate has been produced, which typically takes between 7-10 business days. After this waiting period, the life insurance claim process can begin. However, this can take an additional 10-45 days. Cumulatively, typical life insurance claims take 2-6 weeks. During this time, how does the family have access to funds for final expenses?
POD / TOD
PODs and TODs, otherwise known as Beneficiary designation, is another popular final expense planning tool. This is often used by agents and advisors simply by adding "Payable on Death Transfer" on designations to accounts. This method also must wait 7-10 business days for a death certificate before it can begin. From that point, the process takes another 3-7 business days. Although this method is shorter than the life insurance claims process, there is still a total of 1-2 weeks before funds can be made available to the family. Again, this leaves the family in the position of having to fund final expenses themselves while waiting for the deceased's assets are made available.
Estate Settlement
The least desirable final expense funding option would be an estate settlement. This scenario would occur if no beneficiary or life insurance planning was done. Like the other methods, the process must wait 7-10 business days for the death certificate, after which the probate process begins. The probate process is by far the longest settlement option, lasting several months to over a year. This extensive waiting period can result in prolonged financial hardships for the family.
Pre-Paid Funeral Planning
Another potential final expense option is paying the funeral home directly through pre-paid funeral planning. While this does eliminate the need for a death certificate, it also comes with limitations. Pre-paid funeral planning only covers the direct funeral expenses. The family will still have to pay for any other services - such as flowers, food, venue costs, or extra memorials. An often-overlooked additional service is Postmortem Transportation. This would be necessary in the event that the individual passed away in another location - for example, in a different state. These services are typically not covered under a pre-paid arrangement with the funeral home, leaving the family in the same predicament.
