preneed insurance can cover all your funeral expenses

What Is Preneed Funeral Insurance?

Preneed insurance, sometimes referred to as funeral insurance, covers all of your funeral expenses, from the casket to the flowers. It’s purchased directly through a funeral home and allows you to make all of the arrangements ahead of time, relieving the burden from the policyholders’ loved ones once they have passed away.

But there’s a lot more you need to know about preneed insurance and how it stacks up against your other options for funeral cost coverage. For peace of mind, read on and find out if preneed funeral insurance is a good option for you and your family. 

The Pros of Preneed Funeral Insurance

Preneed insurance offers a straightforward method of paying for the exact funeral you or your family member wants. You’ll work directly with the funeral home of your choice to make your desired arrangements. The payout will go directly to these costs once the policyholder passes away.

There is, then, little guesswork with a preneed plan. Nothing will change once you have signed up—even if the prices of some of your arrangements have increased, your cost will remain the same and will still be covered by the payout. And, if something you chose becomes unavailable at any point, you may switch it for a close alternative option.

Some preneed plans are also Medicaid-exempt, meaning that the plan will not be counted with your Medicaid eligibility assets. Be sure, however, to talk with the funeral home you are considering and see if this is the case because not all plans offer this benefit.

The Cons of Funeral Insurance

With all of the stability of preneed insurance, there are also a few downsides you should consider. Your payment will not increase if something in your arrangements goes up in price—however, it will also not decrease if something goes down in price. 

Or, if you must swap one of your customizations if it becomes unavailable, you must still give the same payout. That is one of the biggest cons of the preneed plan—no matter what, the entire payout and all of your premium payments go to the funeral home.

How Funeral Insurance Compares to Other Policies

Funeral or preneed insurance is an incredibly small plan compared to other types of insurance. One of the biggest policies you can purchase is whole life insurance, which can payout as much as $100,000. 

Funeral insurance, however, can be anywhere between $4,000 to more than $10,000, depending on your chosen arrangements. A comparable option, then, would be burial insurance.

Rather than the payout going to the funeral home like with preneed, the payout for burial insurance goes to a chosen beneficiary and can be used for more than just the funeral if desired.

Compare Your Insurance Options with Real People Who Care

When it comes to funeral expenses, finding the right plan is not easy. In a sea of unanswered questions and fears, many people are left with sub-par coverage and no other options. 

That’s not the case with Senior Life Services. We have real people waiting for you to give us a call—and, when you do, you’ll get the highest quality customer service and insurance advice to feel confident in your coverage. When you’re ready to get started, call us at (800) 548-3249.


Ensure your loved ones are taken care. Call us today for a quote!

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