Payment Plans and Pre-Funding Options

To lock in the price of a funeral at today’s cost, we pre-fund our funerals through National Guardian Life (NGL), a company that deals directly with pre-funding funerals. Simply explained, 100% of the money goes into an irrevocable policy that grows, to keep up with inflation, and in many instances, grows above and beyond the price of the funeral service you choose.

In addition to the policy growing, there is an initial “face bump” to the policy, which is determined by the amount paid, put in, and the age of the policy holder – all of which currently makes this investment instrument perform better than diminishing interest rates, at local banks. For example, if you invest $7,000 at age 50, the initial “face bump” is $70.71, making the policy worth $7,070.71. The “face bump” amount of $70.71 added to the original $7,000 will grow at the current rate. However, if you invest $7,000.00 at the age of 75 the initial “face bump” is $35.18, which makes the policy worth $7,035.18 growing at the current rate. The reason there is a difference in the face amount values is because they are calculated using morality tables, which are based on age. Simply stated, the younger you are, the higher the “face bump”.

The reason the policy is set up irrevocably is to protect your interests. For example, if your health would decline or an accident would put you in a situation where you need to enter a nursing home or assisted living facility this money is protected for you and will not be considered a tangible asset.

Another great feature of this policy is that there are no income tax ramifications while you are living. The money that is left above and beyond the cost of the funeral service, goes to a named beneficiary, income tax free. Even if you set the policy up on a 3, 5, or 10 year payment plan, the cost of the funeral is still guaranteed at today’s prices.

Kennedy-Anderson Funeral Home realizes the pre-funding options, as explained above, cover a lot of territory and can be a little confusing. If you have any questions, please call.

Age (Years)

Single Payment

3 Years

5 Years

 

10 Years

51 – 55

$7,000.00

$238.64

$154.97

 

$98.40

56 – 60

$7,000.00

$252.27

$164.06

 

$105.26

61 – 65

$7,000.00

$259.91

$170.53

 

$108.20

66 – 70

$7,000.00

$269.09

$177.05

 

$114.91

71 – 75

$7,000.00

$277.30

$182.33

 

$123.12

76 – 80

$7,000.00

$284.07

$187.62

 

$138.53

81 – 85

$7,000.00

$296.93

$203.41

 

N/A

86 – 90

$7,000.00

$312.12

N/A

 

N/A

91 – 95

$7,000.00

N/A

N/A

 

N/A

96 – 99

$7,000.00

N/A

N/A

 

N/A

All figures are based on funeral expense of $7,000.00 and all payments plans are quoted with monthly options. Quarterly, semiannual, and annual payments plans are also available. For further information, quotes on other payment options, or answers to any questions you may have, please call us at (814) 886-8051.


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