Financial Pre Need
There is only one person who knows your financial situation best--and that is you. With our help, you can find a pre-need that fits into your budget.
Frequently Asked Questions:
1. How do I pay?
Your pre-need arrangements may be paid for using existing life insurance, by creating a bank trust, purchasing burial insurance, or a combination of all three.
2. Does this mean my funeral will be paid for?
Some life insurance policies have a face value with no growth, while pre-need insurance and bank trusts have a face value and continuous growth. Therefore, your life insurance policies that have no growth will need to be attatched to a new policy that has growth (your pre-need counselor will further explain all of this.) Futhermore, some policies require that you pay every month, quarter, and year until the time of death (these are known as whole life policies).
Pre-need insurance usually has the following terms:
Single pay, in which the funeral is paid in full, so it will have enough growth to keep up with tomorrow's costs.
Payment installments for three, five, seven, or ten years, with growth that keeps up with costs. However, most require a mininum of two years payment before death occurs to pay face value.
When using existing insurance, whether it has a growth option or not, the policy is generally attatched to a bank trust or pre-need insurance.
Under these circumstances your funeral bill is paid.
However, when using a bank trust, the funeral amount will only be paid when the face value of the trust account has reached the face value of the contract amount.
3. How am I assured that this is a secure arrangement?
Under North Carolina law, all pre-needs must be registered with the
North Carolina Board of Funeral Service, for which there is a filing fee of $20.00, per the Board. After receiving the contract, you will receive a confirmation letter from the Board, indicating that they have received and filed the contract.
4. What is the purpose of the filing fee?
The state of North Carolina guarantees that this conrtract will be honored, egardless of the status of the funeral home, whether or not they are still in business.
5. Is there any part of a funeral contract that is not guarenteed?
Yes. There are items that a funeral homes obtains for a family at the time of need, such as death certificates, opening and closing of the grave, North Carolina sales tax, special music, hair dresser, obituaries, flowers, meals, etc. that the family may request. These items are listed in your contract as non-guaranteed cash advance items.
6. Can you offset these non-guaranteed expenses?
Yes. You may use a bank trust or an insurance policy to cover the cost of these specific needs, attatching that policy to your existing policy.
7. How old must you be to obtain a pre-need?
A pre-need may be established for any person between one day and 85 years old, with a choice of payment options. However, after age 85, only a single pay policy may be issued. One must be age 18 years of age or older to sign a pre-need contract in the state of North Carolina.
The time of death is very emotional for your loved ones. This is a time when family members need to support one another, rather than worry about your what your desired arrangement choices might have been, and figure out how to pay for them. When you utilize pre-need planning, you are relieving your family of a significant emotional burden, leaving behind a detailed list of your wishes made at a time when using your head, instead of your emotions. It is also important to note that many nursing care facillities require that a pre-need plan be made before entry, and that most agencies require an irrevocable pre-need.
1. What is the difference between revocable and irrevocable pre-need?
A revocable pre-need is one in which you are in-charge, and may manipulate the funds. An irrevocable pre-need is one in which you are not in-charge, and is not an asset that would count against your receiveing assistance of any kind.
2. Will Social Security pay on my funeral?
Social Security pays only when there is a surviving spouse, or when there is a dependent child.
3. Will the Veterans Administration assist in the payment for my funeral?
Yes. If you have received an honorable discharge from any branch of the United States Armed Forces, you are entitled to the following: a flag that is draped on your casket and presented to your next of kin, a grave plot in a veterans' cemetery, complimentary opening and closing of the grave in the veterans' cemetery, a mininum cemetery receptical (grave liner or burial vault,) interment rites for you, your spouse, and a dependent child in a veterans' cemetery, a gravemarker, and military honors.
In order to receive the benefits listed above, you must present your military DD-214 discharge papers.
Not all pre-needs are funded, and are known simply as pre-arrangements. A pre-arrangement is basically a listing of your selected goods and service,s without any attachment of a financial policy. By making a pre-arrangement, your wishes are available to your loved ones at the time of death, which can help avoid conflict among family members at an emotional time. There is no charge for this service.
Please contact me with any questions regarding pre-need.
Darryl F. Hawkins
Office: (336) 751-3111
Cell: (336) 655-5983