Life Insurance Companies Offer Funeral Concierge Perks

 

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Planning a funeral can be overwhelming. Not only are there seemingly endless options, but also pricing can be vague and it’s difficult to know if you’re getting a fair deal. The No. 1 fear for people planning a funeral is being taken advantage of, according to Mark Duffey, CEO of Everest, a funeral concierge service. The other greatest fear is not being able to afford a funeral.

The national median cost for a funeral with a viewing and burial in 2019 was $7,640, according to the National Funeral Directors Association. If you add a vault, the average is $9,135. But those costs can vary dramatically, depending on what products and services you choose. If you pick more expensive materials for a casket, or start adding in services like transportation, music and flower arrangements, costs go up.

“Most consumers have never bought a funeral, and most of the time they just want to get out of there,” says Duffey.

But when it comes to planning and paying for a funeral, rushing the process can lead to overpaying and purchasing services you don’t need.

That’s where a service like a funeral concierge can not only help you make better informed decisions but also save you money. Think of a funeral concierge as a consumer advocate who is not associated with a funeral home, meaning they won’t benefit from upselling you on certain options, like more expensive caskets or vaults.

By choosing only the options you want, it’s possible to shave off anywhere from $3,000 to $10,000 off the price tag, according to Duffey.

What Services Does a Funeral Concierge Offer?

A funeral concierge works on your behalf to educate you on the funeral services available, then gets you the best prices at your funeral home of choice. For example, Everest has a database of funeral home prices across the United States. They can leverage this data to negotiate with a funeral home.

funeral flowers

One of the biggest benefits of a funeral concierge is that they’ll help you select only the services you want. For example, some funeral homes might have services and products bundled together and sold as packages, each package with more upgrades and higher costs. You might want a certain casket, but not want some of the services in the package.

“We bust up those packages, because a lot of that stuff is just layered in there to make it look like you’re getting a lot of value, but in reality, you’re not,” says Duffey. “We strip away all the stuff you don’t necessarily need or want, and that right there is where you can save thousands and thousands of dollars.”

Everest is the leading provider of funeral concierge services. Here are some other services they and other funeral concierge companies offer:

Pre-planning tools: You can document and store your end-of-life wishes to be shared with your family at the appropriate time. For example, you can choose your casket and funeral services.

Will preparation and other legal documents. A funeral concierge might offer online tools to help you create a will, power of attorney, estate planning and other legal documents.

Price comparison tools: A funeral concierge may have a database of funeral home prices to better negotiate the cost of your chosen services.

Advisor services: You or your family will have support from licensed funeral directors to help you navigate the funeral planning process. Some plans offer 24/7 access to expert advice.

Quick payment: A life insurance policy’s funeral concierge plan might guarantee a quick disbursement of life insurance funds so your beneficiaries can use the proceeds for funeral expenses.

How Do I Get a Funeral Concierge?

Here are the ways to get a funeral concierge:

Through a life insurance policy. Some life insurance policies offer you the option to add funeral planning services, or they include it for free. For example, Transamerica’s Financial Foundation IUL plan offers these services at no additional cost.

Through your employer’s group life insurance policy. If your employer offers a group life insurance policy, a funeral concierge may be rolled in with the plan. Keep in mind, if you leave your job, you’ll typically lose company-paid group life insurance, which means you would also lose the funeral concierge.

Through a credit union. Your credit union might offer funeral concierge services through partnership with companies like Everest.

From a funeral home. A funeral home might offer its own services like pre-planning and 24/7 assistance. But keep in mind, the concierge is associated with the funeral home and you won’t have the benefit of a third-party negotiating on your behalf.

If you get funeral concierge service with your life insurance policy, you should be aware of a potential hangup for a “quick payment” if the policy is fairly new. While a concierge plan may say that your beneficiary could get paid within two days, life insurance policies generally have what’s called a “contestability period.”

The contestability period is usually the first two years of the policy and gives the insurance company the right to contest or question a claim. For example, the insurance company could investigate whether there were any misrepresentations on the application, such as hiding facts about a health condition or dangerous hobby such as scuba diving. If that happens, a claim payment will be delayed.

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Funeral Concierge FAQ What is burial insurance?

Generally, burial insurance is a whole life insurance policy that’s sold in small amounts (between $5,000 to $25,000) and used to pay for funeral expenses. If you don’t have much savings or other life insurance, burial insurance can be a good way to provide funds for your family to use for a funeral.

Can I use my life insurance policy to pay for funeral expenses?

Your life insurance beneficiary will be able to choose how to spend the life insurance payout, whether that be paying bills and debt, and/or paying for your funeral.

Funeral Flowers

If you want your life insurance payout to go directly to a funeral home and not pass through the hands of another beneficiary, there’s “pre-need insurance.” You’ll pick out funeral arrangements at a specific funeral home and, when you die, the funeral home will receive the funds. But pre-need insurance lacks flexibility. If your needs change over time or you move out-of-state, things can get complicated. Not all pre-need insurance plans move with you.

How do I add a funeral concierge to my life insurance policy?

Your life insurance company might offer a funeral concierge as a life insurance rider, which is an add-on to the policy. This might be a free perk, depending on your insurer and policy type. For example, Transamerica offers a “concierge planning rider” to qualified policyholders of index universal life policies.