Pre-Funding for Funerals a Growing Trend

piggybankgraduationtouching_handswedding_ringsLife’s most important events require planning. Your funeral is no exception. It’s about your life; plan it while you’re living and spare your loved ones from having to make arrangements at the time of your death. The Funeral and Memorial Information Council reported that 72% of those surveyed favored the idea of pre-planning their own funeral. And a growing percentage are discovering the benefits of pre-funding for their final expenses.

Small Steps, Big Impact

flowerIt’s never too early to begin the process of pre-planning and pre-funding your funeral. You don’t have to decide everything all at once! You can begin compiling memories and setting aside funds today. When you’re ready to plan out the details, you can meet with the funeral home of your choice to make arrangements.

In the past, there have been 4 
common ways to pay for a funeral:


    1. Life Insurance: These are funds intended to be left to your family and may not be immediately available.
    2. Personal Savings: These are funds for day-to-day living. In the event of a lengthy illness, they may have eroded significantly.
    3. Credit card or loan: This approach leaves heirs in debt.
    4. Family and friends: Borrowing from family and friends can be embarrassing as well as a financial strain to repay.

Fortunately, there’s a better option. . .

A Funeral Expense Trust

A funeral expense trust is a designated, pre-funded plan that combines 
the financial stability of insurance with 
the security of a trust.

Funeral Costs
Professional Services $1,283
Embalming/Cosmetology $537
Memorial Service $670
Flowers $250
Transfer of Remains to
Funeral Home $186
Hearse $170
Limo (2) $260
Service Van $100
Graveside $400
Cemetery Charges $1,400
Casket $2,477
Vault $757

Total $8,495

How much might your funeral cost? Today’s funeral costs less than you might think. The U.S. Senate Committee on Aging shows the average adult funeral price to be $8,495. If something happened to you today, how would your funeral be paid for?

Are Your Funds Protected? Among people turning 65 today, 69% 
will need some form of long-term care.** The average cost of long term care 
is between $68,255 and $76,460 per year, growing at an annual rate of 4% over the last five years.† Many people who need long-term care will need to qualify for Medicaid at some point.
This may require reducing their countable assets by paying the nursing home, making allowable purchases, or exempting assets from consideration. Putting your funds into a trust for funeral expenses exempts that money from Medicaid consideration.

How does a funeral trust work? Start by investing money from savings or a CD into an Irrevocable Funeral Trust. Protected funds earn tax-free interest until the time of need. Funds are protected from creditors, nursing homes, and Medicaid.* The funds avoid the delays and costs of probate and expenses are paid immediately.

National Guardian Life

NGL_buildingThe National Guardian Life Insurance Company (NGL) of Madison Wisconsin offers clients 100+ years of financial security, 2.2 billion dollars in current assets, and an A- Excellent rating from A.M. Best, the leading provider of ratings and financial data for the insurance industry worldwide. When you work with NGL to establish your irrevocable funeral trust, you’ll be working with one of the country’s most trusted and most successful independent mutual life insurance companies.

The NGL Advantage

NGL’s Final Expense Trust Annuity Savings Account CD Money Market Mutual Funds
Proceeds Avoid Probate Costs Yes Yes Depends Depends Depends Depends
Federal Income Tax-Free Death Benefits Yes No No No No No
Free of Market Risk Yes Depends Yes Yes No No
Principal Guaranteed Yes Yes Yes Yes No No
Defined Growth Rate Yes Depends No Yes No No
Funds Protected from Creditors Yes No No No** No No
Excluded Asset in order to Qualify for Medicaid & SSI Yes* No No No** No No


Get Started


        1. Work with a licensed NGL financial advisor.
        2. Establish your trust-protected Final Expense Insurance Policy easily by:
          • a lump sum transfer from savings, CDs 
or Money Market accounts.
          • a transfer of funds from a pre-existing life insurance account [1035 Exchange].
          • adding to the fund in installments over a period of one year.
        3. Next Steps (OPTIONAL):
          • Basic: Complete a brief, three-step planning guide, provided compliments of NGL. Store this with your important documents.
          • Advanced: Meet with a local funeral home of your choice to 
discuss service options and personal preferences.

Some exclusions do apply. Please contact us for details.

© 2009 National Guardian Life Insurance Company, Madison, WI. 
Insurance coverage provided by National Guardian Life Insurance Company. National Guardian Life Insurance Company is not affiliated with the Guardian Life Insurance Company of America, aka The Guardian or Guardian Life.

*”Pre-planning gains popularity for funeral services”, The Business Journal, March 15, 2005.
** American Association of Homes & Services for the Aging (2009)
† Genworth Financial Cost of Care Survey (2008)