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To lock in the price of a funeral at today’s cost, we prefund our funerals through Columbian Financial Group, a company that deals solely with prefunding funerals. Simply explained, 100% of the money goes into an irrevocable policy that grows at a rate (currently 4%) to keep up with inflation, and in many instances, grows above and beyond the price of the funeral service you choose.
In addition to the policy growing at 4%, there is an initial “face bump” to the policy, which is determined by the amount paid, put in, and the age of the policy holder – all of which currently makes this investment instrument perform better than diminishing interest rates, at local banks. For example, if you invest $7,500 at age 50, the initial “face bump” is $1,993.67, making the policy worth $9,493.67. The ” face bump” amount of $1,993.67 added to the original $7,500 will grow at the current rate of 4%. However, if you invest $7,500.00 at the age of 75 the initial “face bump” is $231.96 which makes the policy worth $7,731.96 growing 4%. The reason there is a difference in the face amount values is because they are calculated using morality tables, which are based on age. Simply stated, the younger you are, the higher the “face bump”.
The reason the policy is set up irrevocably is to protect your interests. For example, if your health would decline or an accident would put you in a situation where you need to enter a nursing home or assisted living facility this money is protected for you and will not be considered a tangible asset.
Another great feature of this policy is that there are no income tax ramifications while you are living. The money that is left above and beyond the cost of the funeral service, goes to a named beneficiary, income tax free. Even if you set the policy up on a 3, 5, 7 or 10 year payment plan, the cost of the funeral is still guaranteed at today’s prices.
I realize the prefunding options, as explained above, cover a lot of territory and can be a little confusing. If you have any questions, please call.
|Age (Years)||Single Payment||3 Years||5 Years||7 Years||10 Years|
|50 – 54||$7,500.00||$258.86||$179.89||$145.29||$117.62|
|55 – 59||$7,500.00||$254.10||$185.19||$147.26||$126.84|
|60 – 64||$7,500.00||$257.18||$176.18||$141.75||$123.90|
|65 – 69||$7,500.00||$265.78||$184.58||$154.48||$127.58|
|70 – 74||$7,500.00||$280.03||$191.19||$158.48||$129.39|
|75 – 79||$7,500.00||$303.21||$212.44||$175.74||N/A|
|80 – 84||$7,500.00||$326.38||N/A||N/A||N/A|
|85 – 89||$7,500.00||N/A||N/A||N/A||N/A|
|90 – 94||$7,500.00||N/A||N/A||N/A||N/A|
|95 – 99||$7,500.00||N/A||N/A||N/A||N/A|
All figures are based on funeral expense of $7,500.00 and all payments plans are quoted with monthly options. Quarterly, semiannual, and annual payments plans are also available. For further information, quotes on other payment options or answers to any questions you may have, please call us at (814) 842-3291.