What if there is not enough money in the prefinanced agreement to pay for funeral costs once death occurs?
It all depends on the contract/agreement to service the prefinanced agreement made with the funeral home. If certain merchandise or services were guaranteed, then you are not responsible for any increases in those areas. Many contracts financed with trust money will call for you to pay any difference in costs at the time of death. The idea, in those cases, is that the interest that accumulates in the account will offset any price increases in place at the time of death. Once again, this is a good thing to get in writing at the time such an agreement is made-and not once death has occurred and it is time to pay the funeral bill.
Related Questions
- What happens should there be any money remaining from a prefinanced funeral product once death occurs and payment has been made to the funeral home?
- I’m widowed and wondered if I can take a loan out on my policy to pay for my deceased spouses funeral costs?
- Can I receive a refund of my prefinanced funeral agreement prior to death?
