What is Funeral & Burial Insurance?
Recently, I have been asked about this new concept of paying for one’s funeral through funeral insurance. I will list some various questions together with my responses, but first I will explain how funeral pre-funding works. When someone pays for his/her funeral in advance, the funds cannot go directly into the general revenue of the funeral home since it has not yet performed the services yet. It should be noted that in the Province of British Columbia there are regulations under the Cemetery and Funeral Services Act regarding funeral pre-payment. These regulations are in place for the safety of the consumer. The funds are placed in some type of funding vehicle, such as term deposits, trust funds or funeral insurance. Whatever vehicle is used, most funeral homes will guarantee the costs of their services and merchandise against inflation. Once the total cost is arrived at (including professional services, merchandise and disbursements) that amount is paid into the funeral insurance. H
