In most provinces, there are two ways to pay to get a jump on future funeral services. You can buy an insurance policy that includes pre-paid funeral arrangements, in which case premiums will be paid to the insurance company and you’ll still have to negotiate with a funeral home on details. Burial insurance — fixed premium policies generally range from $5,000 to $15,000 through organizations like Purple Shield and the Canada Protection Plan — covers the costs related to such final expenses and is received tax free. Or, you can purchase pre-paid funeral arrangements directly from a funeral home. When you give the money to the funeral home, it then deposits the money into a trust account (held by a financial institution such as a bank or trust company), where it will earn modest interest until the contract is fulfilled or cancelled. Often, if you pre-pay this way, the costs are guaranteed, meaning the funeral shouldn’t cost you any more, regardless of inflation. But that’s not always the case so read your contract carefully. Generally, you can change your mind prior to your death, often without the penalties associated with cancelling an insurance policy.
Posted on: Wed, 04 Sep 2013 17:17:06 +0000
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