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Pre-payment Options

WHAT IS A PRE-PAID FUNERAL?
Pre-payment at the Innisfil Funeral Home is the optional step that can be taken when pre-planning a funeral. This sections discusses the advantages, highlights the available options and answers the common questions that we receive.

At Innisfil Funeral Home, pre-payment is always an option and never an obligation. Pre-paying a funeral in addition to pre-planning has several important advantages:

  • Protects the cost of the funeral from inflation when pre-paid in full or when installments are paid through qualified insurance options
  • Recongnized by Canada Revenue Agency as a tax-free method for people to invest their money; any interest earned that is used for funeral related expenses is not subject to tax
  • Removes the financial burden from surviving family should the estate not have sufficient funds to cover funeral costs
  • Peace of mind knowing that it is looked after
  • Flexible payment plans can be arranged. Please inquire for details

HOW DOES PRE-PAYMENT WORK?

  • Cost of the funeral is established according to options that are selected
  • This determined amount is pre-paid to the funeral home
  • The money is invested in the name of the purchaser (held in trust on behalf of the client and is not considered an asset of the funeral home)
  • The investment earns interest until the funeral services are provided
  • Interest is used to offset inflation
  • Should there not be enough money in trust, funeral home absorbs the loss; the estate can not be billed for the difference
  • Any interest remaining is refunded to the estate or family can apply towards additional services not pre-paid (i.e. flowers, reception etc.)
  • Only the unused interest refunded to the estate is subject to tax
  • Our pre-paid program is 100% secure and protected by the Government of Ontario ( contact our office for full details or visit www.bereavementauthorityontario.ca)
  • Flexible payment plans can also be arranged. Insurance backed funeral plans provide immediate funeral coverage for those qualify. Contact our office for details.

WHAT PRE-PAYMENT OPTIONS ARE AVAILABLE?
The cost of the funeral is calculated based on the prices in effect on the day of the pre-arrangement. The arranger then has 3 pre-payment options;

OPTION 1: PRE-PAY IN FULL
The total amount of the quotation is paid to the funeral home in one installment.
 

WHAT HAPPENS TO THE MONEY WHEN I PRE-PAY IN FULL?
The funeral home invests the money which remains invested until the death occurs or until the contract is canceled. The money will earn interest during the time that it is invested.

WHAT HAPPENS TO THE INTEREST EARNED?
The interest earned is used to pay the difference between the actual costs of the funeral when pre-arranged and when the services are required (inflation). Should there not be enough money to cover the inflation, the funeral home will absorb that cost. Any excess money will be refunded to the estate. Only interest that is refunded is subject to taxation; any interest earned that is used to cover funeral expenses is tax-free.

OPTION 2: PAYMENT BY INSTALLMENTS
Partial payments can be contributed towards a pre-arrangement. Payment terms can range from one year and up to as long as 20 years. Payments can also be scheduled monthly, bi-monthly, quarterly or annually. Pre-payment options can be explained by one of our funeral directors.
 

WHAT HAPPENS TO EACH PARTIAL PAYMENT I MAKE?
Any payment received is always securely invested where it is accumulating interest.

IS THE COST OF THE FUNERAL GUARANTEED IF I SELECT A PAYMENT PLAN?
Payment plans can be fully insured for those who qualify. If the death happens prior to the completion of all payments, selected plans will cover the entire funeral expense. A 24 month limitation may apply if there are previous health conditions but all payments plus applicable interest are applied to the cost of the funeral. We also understand that insuring the funeral expense prior to death may not be for everyone. We will show you the insured and non-insured options and a cost comparison. Each option can be explained by contacting our office.

 

OPTION 3: FUNDING THROUGH YOUR OWN SOURCE
People can specify on their pre-arrangement that the funeral be funded from another source such as an existing insurance policy. In most situations, the cost of the funeral would not be guaranteed by the funeral home. The details of existing insurance policies would be recorded on file. The cost of the funeral would continue to index according to inflation and will be priced according to price schedule that is in effect at time of death. Some existing policies that are indexed to inflation may be guaranteed pending our review and acceptance. Please contact our office to discuss this option.
 

FREQUENTLY ASKED QUESTIONS:

CAN WE PRE-PLAN FOR BOTH OF US BUT ONLY PRE-PAY ONE?
Absolutely. Whether the arrangements are paid in full or paid by installments, funds can be held to be used for either arrangement. For example, if a husband and wife pre-arrange their funerals, they can pre-pay one contract and designate the funds to be used for the arrangements that are required first. Only the contract that is paid in full would be guaranteed by the funeral home. If desired, the second arrangement can be pre-paid later according to the price schedule in effect on that date. Some families will pre-pay one to start with and return at a later date to complete the second pre-payment.

CAN I MAKE CHANGES TO MY PRE-ARRANGEMENT?
Yes. You are able to make any changes you would like at anytime. We understand that for many, these arrangements are only guidelines. If you are unable to make changes yourself, only your power of attorney, legal next of kin or executor can make changes on your behalf.

CAN MY ARRANGEMENTS BE CANCELLED?
Pre-paid funeral contracts may be cancelled by the arranger or by their legally appointed representative at anytime should the need arise. The contract can also be cancelled after the death has occurred, prior to funeral home providing the goods and services listed in the pre-need contract. The maximum administrative fee that a funeral home can charge for a cancellation is legislated by provincial legislation. It should also be noted that arrangements that are funded by insurance policies may incur penalties for early cancellation. However, insurance policies can be re-assigned to a new funeral home or beneficiary eliminating costly penalties. Depending on the value of the insurance policy and the prices of the newly selected funeral homes prices, the insurance policy may, or may not, be sufficient to continue as a price guaranteed arrangement.

IF I PRE-PAY, IS MY MONEY SECURE?
Pre-paid funds are protected by the Province of Ontario. The Bereavement Authority of Ontario (BAO) is in place to regulate, licence and monitor funeral establishments and their staff. The BAO has established a compensation fund designed to protect pre-paid funeral funds. This 100% protection covers both the original principle and interest earned. Information about the BAO can be found at www.bereavementauthorityontario.ca or by calling 1-844-493-6356. In addition, any money pre-paid to a funeral establishment must be placed in trust or in an insurance policy on behalf of the purchaser. This means the money held is not an asset of the funeral home protecting families should a funeral home encounter financial difficulties, close or transfer ownership.

HOW IS THE COST OF MY FUNERAL DETERMINED?
Our price schedule covers most aspects of the services and merchandise we offer. A price schedule is available at no cost or obligation. Not all items listed will be applicable. These items will vary according to the options you select. As mentioned earlier, a funeral pre-arrangement contract basically divides into 3 sections:

  1. FUNERAL HOME SERVICE FEE: This is the fee that we charge according to the level of service we are providing. Packages for the various arrangements that we offer are shown in our Itemized Price Schedule. In addition, you will see a detailed cost breakdown in the Itemized Price Schedule with various titles such as “Staff & Professional Fees, Facilities & Equipment, etc.” According to provincial law, funeral homes must itemize the service fee they charge so that it is very clear what is, and is not included.
     
  2. MERCHANDISE: Anything purchased from the funeral home that is not a service is merchandise. Examples are caskets or cremation containers, burial vaults or urns.
     
  3. CASH DISBURSEMENTS: These are fees that are charged by persons or organizations not associated with the funeral home. Any item charged as a disbursement is invoiced at cost. For example, if a family would like a death notice to run in the local paper, we will assist the family to compose a suitable notice and submit it on behalf of the family. If the local paper charges us $150.00 we invoice the family for the same. The costs for items like death notices can not be determined on a pre-need basis. For a pre-arrangement, we can estimate the approximate cost and include it in the pre-paid arrangements. There are several examples of disbursements listed in our price schedule but these will fluctuate related to selection of service and the individual needs of each family.

I HAVE ALREADY PRE-PAID WITH ANOTHER FUNERAL HOME. CAN I SWITCH MY ARRANGEMENTS TO INNISIFIL FUNERAL HOME?
Yes. We can assist in re-locating your arrangements. We will even absorb any associated administrative fees that may be charged by any Ontario funeral home.

I WANT TO PRE-ARRANGE. WHAT IS THE NEXT STEP?
If you would like to discuss your arrangements with us, feel free to call us or stop by our office. If you plan on coming in to our office, it is suggested that you make an appointment to ensure that a funeral director is available to meet with you.