We plan for every aspect of life- having a family, taking vacations, planning weddings, and retirement. We prepare for what might happen but often fail to to think about the unavoidable.
Now more than ever, it is important to plan for what is going to take place once we pass away. Our way of life is more complicated. Family members often live in different states or countries, and dealing with government agencies can be frustrating.
Family members making funeral arrangements immediately following a death often are confused and upset. Many times, they do not have the information needed to claim benefits. Each year millions of dollars of government and insurance benefits go unclaimed. Planning ahead prevents emotional overspending and protects your family's interests (taken from Being Prepared: A Practical Guide to Government Benefits & Funeral Planning).
One of the first things that are completed when someone comes to make pre-arrangements at the funeral home is a Biographical Information Form. This form contains information such as the person's name, address, parent's names, employment history, children, etc. This information will be used to assist the family in writing the obituary, completing the Death Certificate, and even selecting flowers or music for the funeral.
If you would like to download this form in advance and fill it out, you can do so by clicking on the link below.
Biographical Information Form
Reasons to Pre-Plan
There are a number of reasons for making funeral arrangements in advance. Among the most important reasons include:
- Your Family: The most important reason for making funeral arrangements in advance is to spare your family this task at a difficult time. There are over 50 major decisions to be made when arranging a funeral. Making those decisions today, with the help of your loved ones, lets you make logical, well thought out plans.
- Lower Costs: While most of us have life insurance funds reserved for retirements, these funds are intended for surviving family, not to meet the cost of the funeral. In most cases, the interest earned from an account or policy will help offset the effects of inflation. Government regulations safeguard your investment so that funds will be available for your family.
- Social Security: With the changes in government benefits over years, it is important for each person to be aware of how these changes will affect those benefits.
Social Security: Upon death, dependents may be eligible for certain benefits. Qualifications depend on age, marital status, number of dependents involved and if employment was under Social Security.
Veterans Benefits: There are many misconceptions about Veteran's death benefits. Honorably discharged veterans may qualify for cemetery plot and burial allowances, headstone, and burial flag, as well as a pension for survivors. These benefits may affect decisions regarding funeral arrangements.
Medicaid: Few people are aware of the provisions under Federal Title 19 where a person can shelter funds to help the family later by providing for funeral arrangements.
- Peace of Mind: Many of us have our preferences regarding where we're buried and how we are to be memorialized. Making funeral arrangements today allows time for you to tend to every detail. You gain the confidence that results from making unhurried, informed decisions. Plus, your family who cares for you will be assured the arrangements reflect your true wishes (taken from Being Prepared: A Practical Guide to Government Benefits and Funeral Planning).
Methods of Pre-Planning
The two main methods of pre-planning are burial insurance and funeral trusts. Funeral trusts are an agreement by which a consumer deposits money in a bank or other financial institution, which then accumulates interest until the time of death. Funeral trusts are treated as a certificate of deposit (CD), and rates will vary.
Burial Insurance involves meeting with a licensed funeral director or agent of the funeral home to select goods and services which will be funded by an insurance policy.
