How Preneed Funeral Insurance Works
Preneed funeral insurance is arranged directly with a funeral home. You choose the specific goods and services you want in advance and fund them through a policy.
The policy is typically assigned to the funeral home, so it is paid to the provider when the services are delivered.
Preneed vs. Final Expense Insurance
The two are easy to confuse but work differently:
- ✓Preneed prepays defined services at one funeral home and is usually assigned to it
- ✓Final expense pays flexible cash to a beneficiary you choose
- ✓Preneed emphasizes locking in services; final expense emphasizes flexibility
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Phone hours: Mon–Fri 8am–8pm ETLocking In Services and Prices
A key appeal of preneed is price certainty. A guaranteed plan can lock in the cost of the selected services, protecting your family from future increases.
Non-guaranteed plans may not, so it is important to know which type you are buying.
Questions to Ask Before Prepaying
Before committing to a preneed plan, ask:
- ✓What exactly is covered, and is the price guaranteed?
- ✓What happens if I move or the funeral home closes?
- ✓Is the plan transferable to another provider?
- ✓Is it refundable, and under what terms?
- ✓How does it compare with a flexible cash policy?