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:
HOW DOES PRE-PAYMENT WORK?
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 exisiting 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 exisiting 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 penaltlies for early cancelllation. 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:
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.