What’s the Difference Between Preneed Life Insurance and Traditional Life Insurance?
Life insurance of any kind is based on a common premise – PROTECTION. We use life insurance to protect the ones we love from costs associated with end of life needs, the burden of unpaid debt after we pass away, and even threats to continuity of lifestyle. So what’s the difference between a preneed life insurance trust and traditional life insurance?
PRENEED LIFE INSURANCE | TRADITIONAL LIFE INSURANCE | |
---|---|---|
Lower monthly premiums | No | Yes |
Guaranteed issue | Yes | Yes (some types) |
Short-term payment plans | Yes | No |
Protected from Medicaid spend down | Yes | No |
Less total out of pocket expense | Yes | No |
Guaranteed funds are there to cover funeral expenses | Yes | No |
Funds paid directly to funeral home within 48 hours | Yes | No (requires presentation of death certificate) |
Meaningful memorialization | Yes | No |
Preneed Life Insurance
Lower monthly premiums
Guaranteed issue
Short-term payment plans
- Protected from Medicaid spend down
- Less total out of pocket expense
- Guaranteed funds are there to cover funeral expenses
Funds paid directly to funeral home within 48 hours
- Meaningful memorialization
Traditional Life Insurance
Lower monthly premiums
Guaranteed issue (sometimes)
Short-term payment plans
- Protected from Medicaid spend down
- Less total out of pocket expense
- Guaranteed funds are there to cover funeral expenses
Funds paid directly to funeral home within 48 hours (requires presentation of death certificate)
- Meaningful memorialization
Have more questions?
If you have more questions about The Catholic Funeral Plan®, contact us and we will be happy to assist you.