Our Pre-paid Funeral Insurance plans are funded with an industry life insurance product, which is designed to keep pace with the rising cost of funerals. The pre-arranged funeral plan guarantees that the funeral arrangements planned and paid for today will be available - as specified and with no additional cost for guaranteed goods and services - years later when the need arises.
Often individuals provide for final expenses by use of their savings or relying on friends and relatives for financial assistance. The last thing you want to do is put your family, friends and relatives in an unexpected financial position. (see graph below)
Remove the emotional burden
Our Pre-paid Funeral Insurance plans are designed to remove the questions such as "Did we do the right thing?" or "Did we spend too much?". By having a pre-paid funeral insurance plan, you have truely reduced the emotional questioning process and eliminated the financial aspects that must be handled at the time of a loss.
Eligibility for Medicaid
Our Pre-paid Funeral Insurance has been reviewed by the departments of health and social services in Maryland, as well as the Health Care Financing Administration (HCFA), and the Social Security Administration (SSI) in determining how it affects eligibility for Medicaid and SSI benefits. Through the use of our irrevocable assignment for your plan, it allows the transfer because there is adequate consideration. Adequate consideration is a legal concept requiring the applicant or recipient to receive something of equal value for the property transferred or assigned. With our program, the Medicaid applicant or recipient receives something of value - a guaranteed funeral/cremation service - in return for the assignment of the death benefit of the pre-paid funeral insurance plan.
No income tax liability on policy growth
The death benefit payable under the life insurance coverage issued is generally exempt from income tax liability.
Our Pre-paid Insurance plans are portable, allowing you to move the plan/coverage as needed during your lifetime and retain your coverage. The details of your plans stay with you and are able to be used at any funeral home of you choosing.
|Pre-paid Funeral Insurance||Funeral Expense Trust||Savings/Money Market||Certificate of Deposit||Traditional Life Insurance/Annuity|
|Protects death benefits from federal income taxes||No||No|
|Considered an excluded asset when attempting to qualify for Medicaid/SSI||No||No, unless the CD is put into a trust for funeral expenses||No|
|Protected from Probate, lawsuits and creditors||No||No||Depends on your state.|
|Offers growth to protect against inflation||No||No||No|
|Pays funeral costs first with any excess funds going to an assigned beneficiary||No||No||No||No|
|Tax penalties Do not apply||No||No||Do not apply to life insurance but Do for annuities|
Please contact us for more information.