Very Important Documents Inside!
We’ve all received them … those envelopes …. “Very Important Documents Inside” …. You wonder, ‘did I win the lottery?’, ‘did someone leave me property in Hawaii?’, ‘what could be so important inside that my name and address needs to be left off the outside?!”.
You open the Very Important Document envelope only to find an impersonal form letter that tells you it’s important for you to contact the sender, to buy insurance to cover the cost of your own funeral (sort of).
Wait a minute! No prize money?! No sudden inheritance?! The envelope contains a clever marketing letter (it even makes reference to Canada Pension), that makes you think you need to contact an out-of-town, faceless company as soon as possible, just in case you were to die in your sleep the night you get the letter!
While preplanning and / or prepaying your funeral is always a wise investment, educating yourself before you do so is also essential.
When you buy a life insurance policy, there is no contract between you and the agent that states the policy will cover the cost of a funeral. They do not provide you with an itemization of services, and they certainly don’t do anything at all regarding your final wishes. They may even show you a funeral home’s pricing breakdown, but the insurance agent will only use the bottom line amount to sell you that insurance coverage. On top of all that, the beneficiary of your insurance policy has no legal obligation to pay for your funeral using the insurance money.
Although some life insurance policies promise ‘end-of-life’ coverage, they do not necessarily cover the cost of a funeral. Moreover, the policy may not be designed to generate an interest rate and, it is not regulated by the Board of Funeral Services.
When you pre-plan your funeral with a licensed funeral director, like those at the Shawn Jackson Funeral Home, there is a detailed plan on file which outlines your wishes and makes the process easier for your family at the time of need. The director oversees the legalities and the funeral, leaving your family worry-free and better able to focus on each other and on honouring your memory.
If you choose to prepay, the contract that is drawn by the licensed funeral director guarantees your wishes. The funds are registered in your name; ensuring that they are used for the purpose of your funeral. Prepaid funds are regulated by the provincial government and monitored by the Board of Funeral Services.
From the moment the contract is signed until it is redeemed, the funeral plan generates tax free interest, which helps offset the cost of inflation. Any excess funds go to the beneficiary or the estate, or can be used to pay for things like flowers, the luncheon caterer, obituary notices, or even to make a donation to your favourite charity.
If you have a term insurance policy or a G.I.C. that is up for renewal, why not re-invest it where it will do the most good? Talk to your local professionals at the Shawn Jackson Funeral Home, 31 Elgin St. in St. Thomas (519-631-0570) today. Your family will be grateful you’ve chosen a modern facility, with truly caring people, for tomorrow.