What is a Pre-Need Funeral Plan
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My name is Daniel, I'm the founder of Trinity Family Life
I create short videos just like this
to educate you about everything you need to know
about Life Insurance and Medicare
you can find this video and
others just like it on TrinityFamilyLife.com
Today we are going to talk about Pre-Need Plans
and we are also going to go over 7 questions
you need to ask yourself before deciding
if a pre-need plan is right for you.
I will be right back.
A Pre-Need plan
is a plan sold by your local funeral home.
you basically go in
you choose all the services you want to happen
at your funeral, your casket and you make all the decsions
and they quote you for the whole package at once.
Most pre-need plans are designed so that you only
have to make payments for a certain
amount of time.
It's almost the exact same thing as
buying a car, you go to the dealership
you choose are car and lets say it's $20,000
They take that $20,000
spread it over a couple of years
and once you are done paying that
you own the car. It's the exact same
thing with pre-need plans.
They take the amount of all the services you have selected
they quote you for lets say 8 to 10 years
and you make those payments unitl
you have paid off the balance
The shorter your payment plan
the higher your premium.
The longer your payment plan the lower your premium.
of course, that makes sense.
now, you might ask yourself
that all sounds great
I will pay that for a while
and I will be done paying
so why buy a life insurance plan
where I have to pay for the rest of my life.
Ok, that's a good argument to make
but let look at why pre-need plans
arent as widely used
as life insurance plans
there is a reason for that
When you buy a pre-need plan
your monthly payments
will be much larger
than a life insurance policy
usually a life insurance policy
for the same amount would
be only a third of the cost of a pre-need plan
you have to consider that if your living on a strict budget
I usually work with people who are retired or disabled