So you’ve decided that you would like to pre-pay your funeral expenses…how will your money be invested? It’s your choice. As I said last week, there are three different investments offered at the Blenheim Community Funeral Home each with it’s own characteristics:
Annuity:
-Pre-arranged funeral can be paid in full or in installments (up to 5 years)
-Growth rate is 3% for ages 0 – 99
-Can be purchased as a “joint first to die” to be used for whomever dies first
-All principal and interest is returned to you on cancellation
-Excess funds can be paid to a beneficiary tax free
Trust:
-Pre-arranged funeral can be paid in full or in installments
-No interest is paid on time installments for the first 90 days and after that only 1% Interest is paid until it is converted to a certificate
-All principal and interest is returned to you on cancellation
-Growth can change quarterly
-Excess funds are paid to the estate and are taxable
Insurance:
-Pre-arranged funeral can be paid in full or in installments up to age 75 (up to 10 years)
-If paid in full, the purchaser (depending on age) is entitled to a discount
-Growth rates are 3% for age 0 – 70 and 2.5% for age 71 – 85
-Can be purchased as a “joint first to die” to be used for whomever dies first
-If paid in full and cancelled, the premium paid is reimbursed but if paid on a time pay, the cash surrender value is paid
-If paid over time and death occurs within 24 months, the death benefit may equal to all payments plus 10% but after 24 months the death benefit is the full funeral amount plus growth.
-Excess funds can be paid to a beneficiary tax free.
There really are good points for any type of investment, but the choice is yours. For more information, don’t hesitate to call.
