What is Funeral Financing
Funeral financing is a way to pay for funeral expenses, either in a lump sum or over time. It can be very helpful if you are not able to come up with the full cost of your loved one's funeral right away. There are many different types of funerals and costs will vary depending on what type you need, but most funeral homes offer some sort of payment plan so that people could afford their final arrangements at times that work best for them.
How Funeral Financing Works
Funeral costs can be expensive, and it is important to have a plan in place before death. A pre-planned policy or life insurance may help cover some expenses, but if those aren't enough you'll need additional sources of funding for your funeral services. Funeral financing is a way to help cover costs for those who cannot pay or don't have enough insurance.
Funeral financing companies protect you from facing this cost all at once by allowing you a set amount of time to repay a loan for your loved one's funeral. Funerals are considered necessary expenses and therefore will qualify you for most forms of traditional or consumer credit including personal loans, home equity lines of credit, second mortgages, and credit cards. However, with rising funeral costs it can be difficult just to keep up with monthly payments on multiple credit cards making Funeral Financing Plans an ideal solution to your financial needs after losing a loved one.
Funeral homes are usually paid once the body has been taken care of. However, if you have a pre-plan or life insurance policy that pays out upon death then there may be delays in getting paid to them and there’s a possibility your loved one won't receive any funds at all because their account will already be closed by this time! To prevent this from happening, families should have a safety net. Without one of these policies in place, there are few options for how to cover an unexpected bill that could be thousands of dollars, and those with no savings account or charged-up credit cards might find themselves turning crowdfunding campaigns into their saviors!
Funeral financing can be a difficult process, but it's important to know that there are solutions available. There are funeral loans, which provide an immediate financial solution during times of need, and short-term payment plans that work well with most budgets as well! The process can be made more manageable for everyone involved when financing is in place.
What Does Funeral Financing Cover
Funeral financing covers the cost of many aspects of a funeral including:
- Funeral Home Costs
- Cremation Costs
- Gravesite Costs
- Hearse and Funeral Procession Fees
- Embalming Fees
- Death Certificate Fees
Funeral financing can also cover other expenses related to funerals such as death certificates, flowers, obituaries, and memorials. Depending on the policy you choose, funerals can often be completely covered by funeral finance plans.
Payment Options for Funeral Expenses
Preneed policies are a great option for those looking to pay for funeral expenses in advance. These policies allow you to lock in today's prices for goods and services, so you know that your loved ones won't have to bear the burden of inflated costs when the time comes.
Life insurance can provide a death benefit to the family of the deceased. The life insurance company will pay out a lump sum of money, which is typically more than enough to cover funeral expenses and other costs associated with losing a loved one.
A pay-on-death account is an account that allows the funds in the account to be transferred directly to the beneficiary after the owner's death. This can be a helpful option for paying funeral expenses, as it allows the funds to be available immediately after death.
Funeral loans are a common option for funeral expenses. These loans typically have a monthly payment, and the loan can be paid off over time.
Funeral expenses can be paid for with a credit card, but the interest rates are very high and it's important to pay off the balance before the end of the billing cycle.
Funeral Financing VS Funeral Pre-Planning
Funeral financing has become increasingly popular with today's consumers, and it can provide immediate relief by using funeral credit to take care of many costs at once," according to Funerals.org. Funeral financing is an option offered by some funeral homes that allows you to pay for the total cost of your loved one's funeral over time in small monthly installments with no interest.
Pre-paid funerals allow you and your family to take advantage of today's reasonable prices and ensure that your final wishes are taken care of at no extra cost.
The key difference between Funeral Financing and Funeral Pre-Planning is that Funeral Financing allows you to pay for your loved one's funeral over time, while Funeral Pre-Planning means paying in advance.
Advantages of Funeral Financing
There are many advantages of funeral financing. One of the most important is that it can help you pay for a loved one's funeral expenses. Funeral costs can add up quickly, and if you don't have the money saved up, funeral financing can be a great option.
Another advantage of funeral financing is that it can help you avoid debt. If you take out a loan to pay for a funeral, you can set up a payment plan that will allow you to slowly pay off the loan over time. This can help you avoid getting into debt after losing a loved one.
Finally, funeral financing can also be helpful in terms of estate planning. When someone dies, their estate goes through probate proceedings. During this time, the estate is divided up among the heirs, and any debts that the deceased person owed are paid off. If you take out a loan to pay for a funeral, this debt will be included in the deceased person's estate and will have to be paid off during probate. This can help make the process of dividing up an estate easier for heirs.
Affordable monthly payment plans through LendingUSA, a leading funeral funding group endorsed by the National Funeral Directors Association. Simple applications can be made online.
