In a previous post, we discussed final expense insurance which is often used to assist in covering end-of-life expenses. Pre-need insurance is similar in a lot of ways, but it does have some key differences that are important to note so that you can have a better understanding of which works best for you.
Who is the Beneficiary?
The beneficiary, or who receives the payout from the insurance, is different between pre-need and final expense insurance. For final expense insurance, the payout goes straight to your loved ones which they can use however they see fit. Pre-need insurance, on the other hand, is paid out to a funeral home which will use it to cover your expenses associated with their services.
What Does it Cover?
Pre-need insurance is unique in that it covers very specific costs. When opting for a pre-need insurance policy, you choose your funeral home and arrangements ahead of time—the insurance covers these expenses specifically. While it lacks the flexibility of final expense insurance, it guarantees that these expenses are fully covered. This kind of policy can take a lot of pressure off of your family and loved ones because your arrangements are pre-determined and already covered, so they aren’t left making those decisions or looking for ways to pay the associated costs.
How Does it Work?
When you decide on a pre-need insurance policy, you form a contract with your funeral home of choice and pre-determine your funeral arrangements. These factors are the basis of your insurance policy, and the funeral home is the beneficiary that will receive the payout which is used to cover those chosen arrangements. Pre-need insurance is often affordable and even though it’s limited, it removes a lot of stress from your loved ones and can easily be supplemented with other insurance plans such as final expense or burial insurance to ensure thorough, comprehensive coverage.
If you have questions or want to discuss whether pre-need insurance is right for you, it’s always a good idea to contact your trusted benefits advisor, such as Aging Benefits Advisory, for a free consultation.
Contact Aging Benefits Advisory Today!
If you need help navigating the world of senior health insurance, our advisors at Aging Benefits Advisory are here to assist. Take advantage of our free consultation to ensure that you receive the plan for your budget and needs. We specialize in Medicare Advantage, Medicare Supplements, Dental, Vision, and Final Expense for the senior market of Pinellas County, Pasco County, Manatee County, Hillsborough County, Polk County, Sarasota County, Citrus County, and Marion County, Florida. If you would like a free consultation, contact us online or give us a call at 727-266-0355. For more information, follow us on Facebook, Pinterest, and YouTube.