Assess health and risk factors
This involves evaluating your health status, medical history, and lifestyle to determine eligibility for different types of insurance plans.
GENERATIONAL WEALTH CONSULTANTS
Protecting What's Most Important
At Generational Wealth Consultants, we provide educational information and help clients organize final-expense planning questions. When product-specific or professional advice is needed, we encourage coordination with appropriately qualified professionals.
Schedule A Call With A ConsultantFinal expense planning may involve coordination with appropriately licensed insurance and legal professionals, where needed.
The 3-Step Final Expense Planning Process
1. Advanced Underwriting
Explore policy options
Based on your individual circumstances, various policy options will be explored, including simplified issue, guaranteed issue, and traditional life insurance.
Compare quotes
Compare available rates, coverage, limitations and eligibility requirements across appropriate providers.
2. Planning Options
Determine coverage needs
Calculate the estimated cost of funeral expenses, outstanding debts, and any other financial obligations you wish to cover.
Choose a policy type
Select the most suitable policy type based on your health, budget, and coverage needs.
Customize your plan
Add riders or features to your policy to tailor it to your specific requirements, such as accidental death coverage or accelerated death benefit.
3. Funding Options
Explore funding sources
Evaluate various funding options, including insurance payouts, savings, investments, and pre-need funeral plans.
Set up payment methods
Choose convenient payment methods for insurance premiums or pre-need plans, such as automatic withdrawals or direct billing.
Review and update
Regularly review and update your final expense plan as your needs and circumstances change. This structured approach can help individuals organize final-expense decisions and discuss funding options with appropriately qualified professionals.
Advanced Underwriting
An appropriately licensed insurance professional may use carrier underwriting tools to assess eligibility based on age, health and existing coverage. Rates, eligibility, discounts and available products vary by applicant, carrier and state; no approval or lowest-cost outcome is guaranteed.
Planning Options
Planning for final expenses involves covering funeral arrangements, end-of-life costs, and asset distribution.
Planning Options
Planning for final expenses involves covering funeral arrangements, end-of-life costs, and asset distribution.
Will
A legal document outlining how assets should be distributed after death.
Pros: Simpler and less expensive than a trust, clearly states your wishes.
Cons: Goes through probate (can be time-consuming and costly), less control over distribution than a trust.
Trust
A legal arrangement where assets are held for the benefit of beneficiaries.
May avoid probate and provide greater control over distribution when properly designed; tax effects depend on the structure and qualified legal and tax advice.
Con: More complex and expensive to set up than a will, requires ongoing management.
This type of plan is intended to make funds available for immediate expenses such as funeral costs, subject to its terms and funding. A will can also document how remaining assets should be handled, with legal questions directed to an appropriately qualified professional.
Some insurance-funded pre-need plans may be portable between participating funeral homes. Creditor treatment, public-benefit eligibility, guarantees and restrictions vary by contract, state and circumstances and should be reviewed with qualified professionals.
Advanced Funding Options (Annuities & Life Insurance)
Fixed Indexed Annuities, Single Premium Life Insurance
Certain annuities may offer tax-deferred accumulation, and life insurance may provide funds for final expenses. Results, access, costs and tax treatment vary by contract and circumstances.
Cons: Annuities may have limited liquidity for early withdrawals, single premium life insurance requires a large upfront investment.
These options can be considered alongside regular savings and other assets. Suitability depends on liquidity needs, costs, guarantees, tax treatment, health, time horizon and individual circumstances.
Funding Options
1. Pre-Paid Funeral Plan
You prepay for your funeral services at today's prices.
May lock in certain listed prices, reduce the immediate burden on family and support detailed planning; coverage terms and excluded costs should be reviewed.
Cons: Can be inflexible if plans change, may not cover all costs (e.g., cemetery plot), money is tied up.
Most advantageous for: Individuals who want funeral arrangements planned and funded in advance.
2. Joint Bank Account (Savings)
A bank account held jointly with another person (often a family member).
Pros: Simple and readily accessible, funds are immediately available to the joint account holder.
Cons: May be subject to creditors of either account holder, can create gift tax issues, may not be sufficient to cover all costs.
Most advantageous for: Individuals who trust the joint account holder and have sufficient funds to cover all expenses.
3. Payable-on-Death (POD) Accounts
A bank account with a designated beneficiary who receives the funds upon your death.
Pros: Avoids probate, funds are readily available to the beneficiary, simple to set up.
Cons: May not be sufficient to cover all costs, the beneficiary has no legal obligation to use the funds for funeral expenses.
Most advantageous for: Individuals who want a simple way to transfer funds directly to a beneficiary.
4. Personal Savings
Funds set aside specifically for funeral expenses.
Pros: Complete control over funds, no premiums or fees.
Cons: Requires discipline to save, may take a long time to accumulate sufficient funds, funds may be used for other purposes.
Most advantageous for: Individuals who are disciplined savers, have a long time to save, and prefer complete control over their funds.
5. Life Insurance (Traditional)
A policy that pays a death benefit to beneficiaries.
Pros: Can provide a larger death benefit than final expense insurance, can cover other financial needs beyond funeral costs.
Cons: Premiums can be higher, may require a medical exam, the application process can be lengthy.
Most advantageous for: Younger, healthier individuals who need a larger death benefit and can afford higher premiums.
6. Final Expense Insurance
A smaller life insurance policy specifically designed to cover funeral and burial costs.
May offer a smaller, purpose-focused death benefit and simplified underwriting. Premiums, eligibility, waiting periods, exclusions and claim timing vary by policy and carrier.
Cons: Smaller death benefit, premiums can still be a significant expense for some individuals.
Most advantageous for: Older individuals, those with health issues, people who want a simple and affordable way to cover funeral expenses.
7. Irrevocable Funeral Trust
A trust specifically designed to hold funds for funeral expenses.
May reserve funds for funeral expenses and, when properly structured, may affect creditor treatment or Medicaid eligibility. Legal effect, access, fees and permitted investments vary and require qualified advice.
Cons: Funds are inaccessible for other purposes, can be complex to set up, may have fees.
Most advantageous for: Individuals concerned about asset protection, Medicaid eligibility, and ensuring funds are used specifically for funeral expenses.
Estate Planning
Estate planning arranges for the management and distribution of assets after death or incapacity. A coordinated plan can document wishes, address costs and taxes, provide for loved ones and include planning for minor children; legal documents should be prepared with qualified counsel.
Types of Assets in an Estate:
Real Estate
Residential properties (e.g., primary residence, vacation homes), Commercial properties, Land and undeveloped properties.
Financial Accounts
Bank accounts (checking, savings, money market accounts), Investment accounts (stocks, bonds, mutual funds), Retirement accounts (401(k), IRA, pensions), Annuities.
Life Insurance Policies
Death benefits payable to beneficiaries.
Business Ownership
Sole proprietorships, Partnerships, Limited Liability Companies (LLCs), Corporations.
Personal Property
Vehicles (cars, boats, motorcycles), Jewelry and collectibles, Art and antiques, Household goods and furnishings.
Digital Assets
Cryptocurrency, Online accounts (social media, email), Digital files (photos, music, documents), Intellectual property rights.
Intellectual Property
Patents, Trademarks, Copyrights, Royalties.
Outstanding Debts and Liabilities
Mortgages, Loans, Credit card debt, Taxes owed.
Social Security and Pension Benefits
Benefits payable to survivors.
Assets That May Transfer Outside Probate:
Payable-on-Death (POD) Assets
Bank accounts, investment accounts, and retirement accounts with designated beneficiaries.
Assets Owned Jointly with Rights of Survivorship
Jointly owned real estate, bank accounts, and investment accounts pass directly to the surviving owner.
Lifetime Gifts
Assets given away during your lifetime.
Certain Retirement Accounts
Accounts with named beneficiaries, such as 401(k)s and IRAs.
Why Is Estate Planning Important?
- Document Your Wishes: You decide who receives your assets and how they are distributed.
- Minimize Taxes and Expenses: Proper planning can reduce estate taxes, probate fees, and other costs.
- Protect Your Loved Ones: Provide financial security for your family and dependents.
- Avoid Probate: Properly structured estate plans can avoid the time-consuming and costly probate process.
- Plan for Incapacity: Designate someone to manage your affairs if you become unable to do so.
- Protect Assets: Safeguard your assets from creditors and lawsuits.
Final Expense Plan
This type of plan is intended to make funds available for immediate expenses such as funeral costs, subject to its terms and funding. A will can also document how remaining assets should be handled, with legal questions directed to an appropriately qualified professional.