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Policy Holders

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What is preneed insurance?

Preneed insurance policies are life insurance policies that are sold in conjunction with pre-arranged funerals. Many licensed funeral directors are also licensed life insurance agents, and those funeral directors often choose to protect their client’s money by assisting them in the purchase of a life insurance policy to pay for their pre-arranged funeral. When a funeral director sells a preneed life policy, it is almost always held in conjunction with a funeral goods and services contract. At the time of death, the insurance company will pay the proceeds from the policy to the funeral home for the benefit of the insured.

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What are the benefits of preneed insurance?

There are tangible benefits to this type of arrangement. Inflation causes funeral prices to rise over time and most preneed policies have a death benefit that is designed to grow. The growth in the face value of the policy is designed to offset the inflation of the funeral prices. Although the growth is not guaranteed, it typically reflects the actual investment experience of the insurance underwriter. Additionally, consumers benefit from peace of mind knowing that the funds they have set aside for their funeral are in the custody of a well-regulated insurance company. Unity Financial Life is a private, legal reserve, life insurance company whose primary regulator is the Ohio Department of Insurance.

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Why prefund your funeral arrangements?

When insurance companies add growth to the face amounts of their policies, funeral directors can guarantee the price of their funeral services to their customers. Some funeral directors choose not to guarantee their prices, but in those cases, the growth of the policy can flow back to the consumer. In cases where a traditional life insurance agent has made the sale and no funeral director is involved, proceeds can be paid to a beneficiary; but without a funeral director involved there can be no guarantee on funeral prices.