Pre-planning is one of the most highly recommended tasks to complete when planning for your retirement and end-of-life expenses. The reason it has grown in popularity is due to the cost-saving benefits of pre-planning options. Though it can be less expensive to pre-plan your cremation service, insurance can help with the bill as well. Here are a few things to understand about using your insurance to cover your pre-planning cremation expenses.
Burial Insurance
One of the first things you need to check is if your insurance policy has a burial insurance portion or clause. In most cases, you will have a separate insurance policy devoted to burial expenses. However, if your insurance policy is an older one, you may have a clause that discusses the portion of your policy that can be devoted to the burial. You will also need to ensure it can be used for pre-planning expenses. If it is unclear on your policy, your insurance agent can help find the answers for you.
Signing Over the Policy
When you begin your cremation service pre-planning, you will be asked how you want to pay for the cremation. This is when you can discuss using your insurance policy to help cover some or all of the expenses. If your policy is acceptable to the funeral home or crematorium, the director will have you sign specified paperwork. This paperwork will consist of signing over the policy at the time of your death. This means making the funeral home or the crematorium the beneficiary of the policy. If there is additional money left after the services are paid for, the additional funds are generally signed over to a beneficiary of your choosing.
Changes to the Cremation Service
When you prepay and pre-plan a funeral or cremation service there may be changes that occur over time. These changes could be changes in state or federal rulings regarding the service or changes you wish to make to your own original plans. When these are planned, you will need to contact your funeral or cremation directory. They can make these changes for you and apply them to the use of your insurance plan. If the changes incur additional charges this will be taken out of your insurance plan or billed to your family if there is a lack of funds in the insurance plan.
When you are ready to begin your cremation service planning, contact your local crematorium or funeral director. If you plan on using a portion or all of your insurance to cover your expenses, let the director know at the time. You will need to bring in your insurance information with you and they will be able to work with you through the process. If you have any questions, the director can answer those.
To learn more information about cremation, reach out to a funeral home near you.
