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DO NOT Prepay for your Funeral until you read this!

Updated: Jul 2, 2021

We didn't know how affordable Final Expense Insurance was!

Nobody enjoys thinking about passing away. When you start to think "Will my family have to pitch in to help cover my burial or will they have to resort to a spaghetti fundraiser to raise enough money?" that's when you decide you will prepay for your funeral so that your loved ones do not have to take on that burden. You feel like this is the best thing to do... the most responsible thing to do. It is.. isn't it? You might be thinking, is this my only option? This is an all too common scenario with seniors and we are here to help!

You have options! Before you prepay for your funeral you MUST read this!

Here are 5 cons of prepaying for your funeral.

  1. Inflation. If you prepay your funeral now and pick out a $3,000 casket and the price of that casket has doubled by the time you pass away, your family will be responsible to cover the additional costs.

  2. Out of business. If the funeral home goes out of business.. now what will your family do? What is the process if this happens? Can your plan be transferred to another funeral home? So many questions, so much for your loved ones to go through during their time of grieving.

  3. Dollar for dollar. Prepaying for your funeral means... exactly that. If you pick out options that total $15,000, you will pay exactly that. If you take out a Final Expense Insurance Policy, this could prevent you from paying dollar for dollar.

  4. Flexibility. You may change your mind. You may find a better option. This may not be possible if you are locked in to a prepaid arrangement.

  5. Money in the bank. Your money is safer with you, in your bank, than it is with the local funeral home. Period.

Funeral & Final Expense Insurance is one of the best alternatives to prepaying for your funeral.

Funeral & Final Expense Insurance is just a life insurance policy designed to help with funeral services, burial costs, and some other minor end-of-life expenses. The benefit pays immediately upon death to your beneficiary of your choice.

Life insurance provides a tax-free death benefit in which the funds can be used to cover the entire cost of a funeral, as well as other expenses.

Just about any type of life insurance policy can be used to help pay for funeral expenses. A type of life insurance called final expense life insurance is the ideal choice when it comes to using life insurance for funeral planning.

Final expense life insurance is the most popular life insurance for seniors ages 50 to 85 especially when not a lot of life insurance is needed. This type of life insurance is what is known as whole life insurance or permanent life insurance.

The coverage not only provides a lifetime of protection but also has a guaranteed fixed premium, as well as guaranteed cash value growth. Coverage amounts can range anywhere from $1,000 up to a maximum benefit of typically $50,000 making it the perfect choice to cover expenses specifically for a funeral.

Best of all, final expense life insurance is affordable, does not require a medical exam, and offers day one coverage. Click HERE for your FREE QUOTE now!

Most funeral homes will accept a life insurance policy as a form of pre-payment for a funeral. This works by collaterally assigning the life insurance death benefit to the funeral home. It is important to know that you are not assigning the funeral home as the beneficiary.

A collateral assignment is a documented agreement between the owner of the life insurance policy, the funeral home, and the life insurance company that states the funeral home will receive the amount due to them to pay for the funeral costs. Any remaining portion of the policy death benefit will be paid out to the named beneficiary on the life insurance policy.


It is not uncommon for a funeral home to offer life insurance coverage or even be partnered with a licensed agent that can offer you a funeral life insurance policy. While this can be convenient to both the funeral home and potential client, it may not be in your best interest to purchase it through the funeral home.

We recommend working with an independent life insurance broker that specializes in funeral and final expense insurance. Independent life insurance agencies have no ties to the funeral home and can shop your life insurance coverage with multiple companies.

This allows for your local agent to provide the client with the best company, plan, and premium that meets your funeral planning needs.

Editorial Notes: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. All content is reviewed by life insurance senior brokers.

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