National Gaurdian Life
Published on: Mar 3, 2016
Transcripts - National Gaurdian Life
Are your funds protected? Final Expense Planning
Consider This . . . <ul><li>Most significant events in our lives require planning; you rarely just let them happen . </li></ul>
Funerals Require Planning, Too! <ul><li>Like other major life events, funerals require planning. </li></ul><ul><li>Today, prearranging and prefunding one’s own funeral is not uncommon. Of all Americans aged 50+ years, it is estimated that: </li></ul><ul><ul><li>34% have preplanned their own funeral.* </li></ul></ul><ul><ul><li>24% have prepaid at least a portion of funeral or burial expenses.* </li></ul></ul>* AARP Funeral and Burial Planners Survey (2007).
Small Steps, Big Impact <ul><li>You don’t have to decide everything all at once! </li></ul><ul><li>Set aside funds today. </li></ul><ul><li>If and when you’re ready to plan out the details, you can meet with the funeral home of your choice to make arrangements. </li></ul>
<ul><li>Life Insurance: </li></ul><ul><li>These are funds intended to be left to your family and may not be immediately available. </li></ul><ul><li>2. Personal Savings: </li></ul><ul><li>These are funds for day-to-day living. In the event of a lengthy illness, they may have eroded significantly. </li></ul><ul><li>3. Credit card or loan: </li></ul><ul><li>This approach leaves heirs in debt. </li></ul><ul><li>4. Family and friends: </li></ul><ul><li>Borrowing from family and friends can be embarrassing as well as a financial strain to repay. </li></ul><ul><li>Fortunately, there’s a better option. . . </li></ul>In the past, there have been four common ways to pay for a funeral:
Funeral Expense Trust <ul><li>A designated, prefunded plan that combines the financial stability of insurance with the security of a trust. </li></ul>
How Much Does a Funeral Cost? <ul><li>Today’s funeral costs less than you might think. </li></ul><ul><li>The U.S. Senate Committee on Aging shows the average adult funeral price to be $8,495*. </li></ul>If something happened to you today, how would your funeral be paid for? *U.S. Senate Committee on Aging (2001); most recent data available. Professional Services $1,283 Embalming/ Cosmetology $537 Memorial Service $670 Flowers $250 Transfer of Remains to Funeral Home $186 Hearse $170 Limo (2) $260 Service Van $100 Graveside $400 Cemetery Charges $1,400 Casket $2,477 Vault $757 Total $8,495
Are Your Funds Protected? <ul><li>Among people turning 65 today, 69 percent will need some form of long-term care.* </li></ul><ul><li>The national average cost of long term care is $68,255-76,460/year** </li></ul><ul><ul><ul><li>Annual growth of 4% over the last five years** </li></ul></ul></ul><ul><li>Many people who need long-term care will need to qualify for Medicaid at some point </li></ul><ul><ul><ul><li>This may require reducing your countable assets by paying the nursing home, making allowable purchases, or exempting assets from consideration </li></ul></ul></ul><ul><li>Putting your funds into a trust for funeral expenses exempts that money from Medicaid consideration </li></ul>* American Association of Homes & Services for the Aging (2009) ** Genworth Financial Cost of Care Survey (2008)
How a Funeral Trust Works Life Insurance Policy Irrevocable Funeral Trust Pre-Planning Funds Use money from Savings, CDs, etc . . . Protected funds earn tax-free interest until time of need Policy Assigned to Policy Value GROWS! Claim Paid Funds avoid probate costs and delays; expenses covered immediately Excess Funds Paid to Estate Funeral Provider Paid Within 48 Hours
Fund Protection Irrevocable Funeral Trust Creditors Nursing Homes Probate Medicaid* * Eligibility varies by state.
How the Trust Compares * Some state regulations apply; please consult your legal advisor. ** Unless put into trust for funeral expenses. No No No** No No Yes* Excluded asset in order to qualify for Medicaid & SSI No No No** No No Yes Funds protected from creditors No No Yes No Depends Yes Defined growth rate No No Yes Yes Yes Yes Principal guaranteed No No Yes Yes Depends Yes Free of market risk No No No No No Yes Federal Income Tax-free death benefits Depends Depends Depends Depends Yes Yes Proceeds avoid probate costs Mutual Funds Money Market CD Savings Account Annuity NGL’s Final Expense Trust
Why NGL? <ul><li>100 Years of Financial Stability </li></ul><ul><li>$2.02 Billion in Current Assets </li></ul><ul><li>A- (Excellent) Rating from A.M. Best </li></ul>National Guardian Life Insurance Company Madison, WI Ratings current as of August 1, 2009. Financials current as of December 31, 2008.
Get Started <ul><li>3. Next Steps (OPTIONAL): </li></ul><ul><ul><li>Basic : Complete a brief, three-step Planning Guide, provided compliments of NGL. Store this with your important documents. </li></ul></ul><ul><ul><li>Advanced : Meet with a local funeral home of your choice to discuss service options and personal preferences. </li></ul></ul><ul><li>Lump sum transfer from savings, CDs or Money Market accounts </li></ul><ul><li>Transfer funds from a pre-existing life insurance account [1035 Exchange] </li></ul><ul><li>Add to the fund in installments over a period of one year </li></ul><ul><li>Work with your licensed NGL Financial Advisor </li></ul><ul><li>2. Establish your Trust-protected Final Expense Insurance Policy easily by: </li></ul>
© 2009 National Guardian Life Insurance Company, Madison, WI. Insurance coverage provided by National Guardian Life Insurance Company. National Guardian Life Insurance Company is not affiliated with the Guardian Life Insurance Company of America, a/k/a The Guardian or Guardian Life. FETCON-BSP 06/09 www.nglic.com