I’m Sorry About Your Loss—Now Here’s the Bill

Funerals can be very expensive. The expense of a coffin, a plot, a headstone and the services can be very overwhelming for a family that was not financially planning for a death. When a loved one passes away the ceremonial process that our society participates in gives people a feeling of closure. 

Today, the average North American traditional funeral costs between $7,000 and $10,000.  This price range includes the services at the funeral home, burial in a cemetery, and the installation of a headstone.  While cremation is gaining in popularity, the traditional funeral is still the most popular manner for disposing of the deceased.

The honoring of the deceased has become part of our society and many families will go in debt to provide that. The funeral expenses are not the only unexpected costs that arise from a death. Many times there are taxes, probate costs or even the need for housekeepers and child care.

No one ever wants to lose a beloved friend or a family member. It is a very sad moment in time and is never easy to deal with. Some traditions hold on to the idea that the end of life is to be celebrated, not mourned. It is a romantic ideal that is much easier said than done.

On the other hand, when the most unfortunate event does occur, friends and family members find themselves discussing the life and memories of those they have lost. They do not focus on the fact that they are gone, but all of the happy memories that were created because of that person.

Average Funeral Costs: How the Funeral Industry Works

Most people planning a funeral use the services of a funeral home.  The funeral director is either the owner of a funeral home or, more commonly, an employee of a large corporate-owned chain of funeral homes.  In most cases the funeral director’s compensation is tied to the profits he generates for the funeral home or the sales commissions he earns by selling related goods and services.

While the funeral director will serve as the family’s main service provider when arranging a funeral service, other businesses are involved as well.  In addition to the funeral home, most families will need to use the services of a cemetery and a headstone dealer.  Often times, the funeral director will coordinate the purchase of goods and services between the family and the cemetery and headstone dealer.  While this is certainly convenient for the family, you need to remember that you are really buying things from three separate business entities: the funeral home, the cemetery, and the headstone dealer.

The funeral director’s main responsibility is generating profits for the funeral home.  Unfortunately, this often means the funeral director’s main objective is to increase the amount of money you spend at the funeral home, leaving cemetery and headstone costs as a separate expense for the family.  This is why the typical funeral service is publicized as costing $6,000 – because the family often pays about $6,000 to the funeral director.  However, the family still has to pay the cemetery for the purchase of a grave spot and the dealer for the price of a headstone.  It’s these additional goods and services that add another $2,000 to $4,000 to the price of a funeral.  Unfortunately, many families do not find this out until after they have signed a contract for the funeral services with the funeral director.

So perhaps there is something to the idea of celebrating the life as opposed to mourning the death. This practice can be difficult when there are mounting expenses involved. That is why many individuals choose to carry funeral trust insurance to ensure that their loved ones will have less to concern themselves with when they pass.

The last thing people want to think about when a loved one passes is money. Sure, there are those greedy, heartless family members that can think of nothing more than how much inheritance they will receive, but they are rare. For most people, they want to keep all of their attention and focus on remembering their loved one.

They prefer to remind themselves of all the cherished memories they were fortunate enough to have with the dear departed. They remember all of the good times and the bad. Everyone involved shares stories of how that loved one touched their lives and how great of an affect their presence had on them. It is a very sad time, but also one for remembrance and reflection.

Most people do not sit around thinking about what will happen when they die. It is a subject that is sort of taboo. However, it is one that every person should consider from time to time. As difficult as it is to imagine there is much more to it than people would like to think.

When a person contemplates death, they may only ponder what happens when they die. Where do they go and what will happen to them. Whether they know it or not, these questions ignore the tremendous affect death has on everyone they love. Not only does it carry a heavy emotional toll on family and friends, but a large financial burden as well. Holding onto a quality funeral insurance plan can help at least alleviate the financial difficulties associated.

When a loved one passes, the last thing you want to worry about is how to pay for the after death expenses. It is an important aspect to consider when thinking about your own life. How will your passing affect those you love financially? As mentioned earlier, it is not an easy subject to ponder, but it is one that can help dampen the impact of your death on your family.

Purchasing a casket, arranging a burial plot, and planning a ceremony tend to be extremely costly, especially if the family is not prepared. All together, it can cost upwards of about fifteen thousand dollars. However, if one plans ahead for their own passing with funeral insurance, they can ease that financial burden placed on the family. This way, all of the final expenses are covered in advance.

The death of a loved one is never a pleasant experience. Family and friends gather to remember the one they lost and reflect on how many lives were touched throughout their lifetime. Planning ahead with funeral insurance affords the family the chance to mourn and remember your life instead of worrying about how to cover the cost of your passing.

I’m Sorry About Your Loss—Now Here’s the Bill
Buying a package funeral deal seems to be the easiest option for grief-stricken family members—and that’s the way it’s intended. Instead of scaling down to the necessities, many people buy an all-inclusive “traditional” funeral—an embalming, an ornate casket, open casket wake, fancy flowers, ceremony, procession, and graveside service.

Anyone who has experienced paying for an unexpected funeral can appreciate the cost of this service. Knowing what to expect in terms of cost can aid in your pre-planning. Here are the facts:

The average cost of a funeral is $6,000, but many traditional funerals can cost more than $10,000. Many people feel there is a connection between how much is spent and how much you loved your family member or friend, but that should not be the case. Letting your family members know your wishes ahead of time will help them realize they do not have to spend money to show their love.

Here’s a breakdown of what you might expect to pay:

Transportation

• Hearse – $135–$250
• Limousine – $125–$250

Facilities and Services

Cremation

• Funeral Home – $1,500-$3,500
• Crematory – about $700, including container

Visitation

• On-site – $100–$520
• Off-site – $275–$550

Funeral

• On-site – $100–$850
• Off-site – $200–$660
• Graveside Ceremonies – $50–$415

Memorial Service*

• On-site – $100–$670
• Off-site – $100–$520
• Removal of Remains – $125–$300

Merchandise

Casket / Cremation Urn

• Less Expensive Casket – $90–$860
• More Expensive Casket – $2,995–$65,000
• Less Expensive Cremation Urn – $25–$235
• More Expensive Cremation Urn – $335–$3,650

Burial container

• Vault – $375–$525
• Liner – $285–$525

Professional and Administrative Services

• Embalming – $100–$525

Caterer

• Opening and Closing the Grave – $350-$1,500

Other

• Headstones or grave markers – $500 to several thousand
• Grave Plot – $350-$3,000
• Death certificates – cost depends on state
• Obituary – cost depends on newspaper and length

To read more click here:  http://annuitynews.net/2009/11/16/pre-need-funeral-trust

How To Choose a Funeral Plan

It may be a gift to those you love.  It was Ben Franklin who said nothing is certain but death and taxes.  This article does not deal with taxes, but rather the other certainty in life. 

Everyone dies, so a discussion of funeral planning is never irrelevant.  When someone we love dies, there are varying stages of anger, confusion, and numbness.  The funeral is one of the most significant means we have in dealing with grief.  The funeral ritual helps us focus our emotions and brings a sense of meaning to death.  It confirms the reality of death and provides a catalyst for mourners to talk about the deceased. Experts tell us being able to talk about the life of a deceased loved one is one of the first steps toward accepting death.

Perarranging your Funeral is not much different than any other planning you have carried out during your lifetime.  You buy insurance in case of fire, flood, theft and death.  These coverages are purchased as an act of love and responsibility for those you love in case an unfortunate incident occurs.

A pre-planned funeral accomplishes the same goals.  A preplanned funeral can prevent your family members from having to make a number of significant decisions at a time when they are confused and upset.  They will have enough on their minds dealing with grief without having to make several important decisions in a very short period of time.  Experts tell us that there are an average of 50 decisions to be made when arranging a funeral.

Adding the need to preplanning is the fact that our lifestyle is more complex in today’s world.  Family members often live in different states, complicating rapid decision making.  Further complications stem from frustrations that occur when dealing with government agencies in different states.  A solid preplanning session can help prevent these complications which can loom very large during a time of pain and sorrow.

How to plan:  A call to a funeral director or a pre-arrangement specialist probably would be a good beginning in making sure you have covered all your basis in your planning. He or she can lead you through a process to ensure you don’t forget vital information in your plan.  Some funeral directors and prearrangement specialists offer free booklets and provide a “punch list” of topics to think through and record your wishes. 

Topics in these guides include funeral details and ranging from visitation to the memorial service and alternatives from burial, cremation, or entombment.  These are obvious decisions, but other important topics include categories that will provide a helping hand to your family.

Additional topics include organizations to be notified with phone numbers, persons to be notified, medical history, estate information, banking information, real estate holdings and insurance policies.  Many include obituary information outlines, personal property inventories and special instruction and information pages.  There may also be information regarding the importance of your will and how to go about ensuring it is accurate and updated.

Prefunding your funeral also is an important consideration.  Your funeral director or prearrangement specialist can show you options which will waive your family from possible financial burden later.  You may take out a life insurance policy which would cover funeral expenses, or invest in a funeral trust account or final expense policy.  In most cases, funds invested today would be enough to cover the total cost of the funeral since interest earned by the funds will offset the effect of inflation.

Government regulations safeguard your investment so funds will always be available for use.  Another important part of your plan is to make sure your loved ones know where your recorded wishes can be found.  Millions of dollars in government and insurance death benefits go unclaimed because family members do not know where to find information they need at the time of death.  Some considerations that also need to remain in the forefront of the pre-planning agenda.

Social Security – When a loved one dies, dependents and survivors may be eligible for certain benefits such as death payments, survivors benefits and Medicare.  Qualifications depend on several factors such as age, marital status, number of dependent and whether employment was under Social Security.  Your Social Security account should be verified periodically to ensure contributions are posted.  All benefits must be applied for since payments are not automatic.

Veterans Benefits – Honorably discharged veterans are entitled to benefits that may affect decisions about funeral arrangements.  For example, veterans may qualify for a cemetery plot and burial allowances, a headstone, and burial flag, as well as pensions for survivors.

Medicaid – Having a properly structured prepaid funeral is a very important reason why preplanning  a funeral is imperative.  If an individual has placed their funds into a prepaid funeral plans, after they have itemized a funeral pre-arrangement, the money would most likely be protected 100% from paying for any nursing home costs.  In most cases they can also pay for burial space items for their immediate family members.  Each persons situation is unique and laws change, however, most funeral directors and pre-arrangement specialists work closely with Elder Law Attorneys who keep them updated on current Medical Assistance Laws.

We recommend looking at  An irrevocable funeral trust (IFT) is a tool that prevents a overly zealous funeral director from misusing your prepaid funeral funds.  Additionally, should you need medicaid assistance the IFT prevents those individual’s assets from being confiscated or forced to be spent down in order to receive government assistance in paying for care over an extended period in a nursing home or long term care facility. 

To read more click here:  http://annuitynews.net/2009/11/16/pre-need-funeral-trust

Annuities Are Smart Purchases

Creating a long-term plan can feel overwhelming, but it doesn’t have to be. Making the shift from regular paychecks to living off retirement income requires careful planning and money management. One of the toughest decisions many people face is how to invest wisely for retirement. Long term investment decisions can have a large impact on how you can afford to spend your retirement, when you can financially retire.

Annuities are smart purchases for a portion of the nest eggs of people who don’t have old-fashioned pension plans. Many retirees are in a terrible bind. The stock market’s volatility scares them, but conservative investments like money-market accounts or bank certificates of deposit yield almost nothing right now. 

Often people that use CD or bond interest as a supplement for their retirement income, find that it simply doesn’t cover all their needs. If they dip into the principal, then the interest is lower and finally they experience a growing shortage every month.

Last month the White House’s Middle Class Task Force recommended immediate annuities as a way to reduce “the risks that retirees will outlive their savings.”

A retirement annuity allows you to maintain the same income level regardless of the fluctuations in the prevailing interest rate. An annuity makes sense because:

• Annuities offer guaranteed income for whatever period you choose up to a lifetime.
• Annuities are tax deferred retirement investments.

A retirement annuity can supply a steady stream of income to supplement your social security and provide for extra travel, dinners out and visit to the children who moved away.

Let’s use an example of a 65-year-old man who buys a $100,000 annuity that pays $7,500 a year and he lives 20 additional years, his life expectancy. Because there isn’t a return of principal at death, the equivalent yield on the investment is 4.48%. (Some of the payment is regarded as a return of principal, only a portion of it is subject to income tax.)

However, the math continues to be much more favorable if our 65-year-old lives longer. For example, If he dies after 25 years, the effective yield rises to 5.87%; at 30 years, 6.61%.

Since investors worry about dying prematurely, insurance companies sell immediate annuities that guarantee the annuity payments will continue for a set number of years. However, you will get a little lower annual income payments—$7,291 for our hypothetical 65-year-old buying an annuity with 10 years of guaranteed payments.

You also can protect your annuity investment by buying from different carriers and staying within the coverage limit available in your state. In the event of an insurer’s insolvency, industry-backed guaranty funds provide at least $100,000 for such annuities; visit www.nolhga.com for links to your state association’s Web site, where you can find the exact limit in your state.

Summary:  Outline what you need in a product before you begin to shop for a retirement annuity. Do you need to have a monthly income? Do you want a product that keeps pace with inflation? Do you simply want tax sheltered growth but don’t want any risks? Once you decide on the type of needs you have, begin to compare retirement annuities. It helps to have the advice of a trained CapitalManagers annuity specialist when you make your final decision.

Financial Security Through Annuities

People often think financial security is only investments and savings, but that’s only part of it. “Financial security is about safeguarding what you’ve already achieved – home, property and income – while at the same time saving and investing for your family’s future. 

The largest unknown, is whether an investment portfolio, will grow or decrease in retirement.

 Recent retirees who thought they had enough were suddenly in trouble when the market tumbled last year. 

The nice thing about a fixed annuity is its there as long as you are. There are many investments that are only good for so many years and if you outlive them you take the loss.

With advances in medicine, life-spans are increasing and one of the main reasons is preventative medicine and prescription drugs. The average senior citizen spends 15-20% of their monthly income on prescription medicines.  Because of the longevity exposure, there is a significant and growing probability of retirees living to age 90, 95, or 100 or more. 

Lawmakers, policymakers, academics and industry executives are now saying adding annuities as an investment option is one way of helping retirees make sure they don’t outlive their nest egg. 

Why?  Annuities can provide a lifetime steam of income that cannot be outlived.  In addition, life expectancy for annuitants has proven to be higher than those who are not annuitants.  First, they have peace of mind that they will not outlive their income provided by their annuities.

Secondly, annuitants are healthier than the general population, because annuities are generally purchased by individuals with above-average health, and who figure they will gain the most advantage from an annuity purchase. 

Thirdly, annuities have riders that can help ensure that the unknown longevity can be insured by guaranteed planned income provided by their annuities.   One rider offered by certain annuities is increasing your lifetime income benefit, should you require long-term care. 

In planning your retirement you can provide for long-term care insurance protection if you select a rider that provides for increased income should you satisfy the requirements of the benefit trigger. 

A stand alone long-term care policy can be expensive the older you are, as they are priced similar to life insurance.  The older you are, the more costly the premium.  If you are interested tin a LTC benefit, the cost may be much less expensive as the rider cost is not age-sensitive.

A annuity is an excellent option for creating a steady stream of payments you’ll want when you retire. In a nutshell you’re giving yourself a regular paycheck. You don’t want to depend on an annuity only for your retirement income but it’s a nice addition to your retirement portfolio. It’s always an excellent idea to have more than one source of income when you retire.