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PRE-PAYMENT OPTIONS
There are a growing number of options available to the public today when seeking to preplan and prepay their final wishes. We can tailor a plan that's right for you. From single pay plans to automatic monthly bank withdrawals designed to meet anyone's budget concerns, our staff would be pleased to outline the choices available.
Pre-paying can protect you and your family from future inflationary trends while providing the piece of mind of knowing that they will be cared for after you are gone. Below you will find more detailed explanations of the plans that we have available. If you would like to request an appointment after you have reviewed this information, we would be pleased to have one of our staff go over any additional questions you might have.
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INSURANCE
An insurance policy is one method in which funds can be placed when pre-paying for funeral expenses. An irrevocable insurance policy is a way to protect funds that are to be specifically used for funeral expenses. If an insured were to become ill and incur large medical expenses or needed to live in a nursing home, the funds in the insurance policy cannot be used to pay for these or any other expenses. Insurance is a growth based product and will increase in value to offset inflationary costs. Another benefit with the insurance product is that there is an initial death benefit which actually gives it a larger face value than the initial amount deposited and there is no statement of interest form that the insured is required to file as income.
Rebecca Nelson of Carlson-Lillemoen Funeral Home is a licensed insurance agent who can sit down and discuss the many different insurance options available and can assist with each individual's needs.
TRUST ACCOUNT
An irrevocable funeral trust account is another method of pre-paying for funeral expenses. The irrevocable funeral trust account is a Certificate of Deposit (CD) that is deposited at any local bank. As with any other type of CD this account does accrue interest and since it is irrevocable the funds are protected and cannot be used for any other expenses. The trust account interest is categorized as income and the owner would need to report the interest as income.
Any of the licensed funeral directors at Carlson-Lillemoen Funeral Home can sit down and discuss the benefits of the irrevocable funeral trust account.
INDIVIDUAL SAVINGS OR CERTIFICATE OF DEPOSIT
An individual savings account or an individual certificate of deposit (CD) that has been set aside for funeral purposes may be a way to plan for funeral expenses. The problem with relying on either of these forms is that the funds are not protected and if you were to fall ill or had to live in a nursing home these funds can be use to pay for those expenses.
Any of the licensed funeral directors at Carlson-Lillemoen Funeral Home can sit down and discuss with you the options to protect your funds.
INDIVIDUAL LIFE INSURANCE POLICY
If you have an individual life insurance policy that you are planning to use to pay for funeral expenses you may want to be aware that if it is not set up irrevocably these funds too can be used to pay for medical or nursing home expenses. Some insurance companies will allow you to attach an irrevocable assignment to the policy which would protect the funds.
Any of the licensed funeral directors at Carlson-Lillemoen Funeral Home can sit down and discuss the options to protect your insurance funds.
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