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Can I Partially Fund a Pre-Arrangement?

Published: October 31, 2022

Can I partially fund a pre-arrangement?

While fully funding a pre-arrangement can help to lock in the price of a funeral home today, that does not work for everyone. There are other payment options that can be more flexible. Some funeral homes allow for partial payment to be made or no payments down on pre-arrangements. 

Other payment options:

Assigning a life insurance policy

A life insurance policy can be assigned to have a funeral home as the beneficiary. By doing so, the funeral home would receive the payment once death has been confirmed. Burial insurance, also called funeral or final expense insurance, is a type of whole life insurance policy designed to cover your funeral, burial, and other end-of-life expenses. 

Providing a trust

If you did not want to prepay, you could set up a trust fund account that will cover the cost of the funeral. There are two types of trusts: revocable and irrevocable. If the trust agreement allows the grantor to cancel or remove money from the trust, it is called a revocable trust. An irrevocable trust does not permit the grantor to cancel or change it. If it is an irrevocable burial trust, it can also help you qualify for Medicaid benefits in the event long-term care is needed.

Creating an investment account 

Another option is to self-fund your funeral expenses through an investment account. This could be done through a dedicated mutual fund, money market account or 

Tribal benefits

Some tribes provide death benefits and insurance for their members. It is important that members designate a beneficiary for the benefits. After receiving notice that someone from the tribe passed, the tribal staff will send payment for the benefits. These benefits can range from $1,000 to $6,000. 

Social security one time death benefit

Not everyone is eligible for the one-time lump sum death benefit. This benefit is about $255 provided to a surviving spouse or eligible dependent. Generally, this benefit will not cover the full cost of a funeral. 

For more information about pre-arrangements, https://www.batemanpacificview.com/pre-arrangements. 

To learn more about the benefits of funding a pre-arrangement, listen to this podcast https://www.buzzsprout.com/1336423/10493225-should-i-fund-a-preneed-or-not.

 
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