Payment Plans and Pre Funding Options
To lock in the price of cremation services at today’s cost we pre fund our cremations through Columbian Financial Group. 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 cremation 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 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 $1500.00 at age 50 the initial “face bump” is $166.67, making the policy worth $1666.67. The “face bumped” amount of $1666.67 will grow at the current rate of 4%. However, if you invest $1500.00 at the age of 75 the initial “face bump” is $10.57 which makes the policy worth $1510.57 growing at 4%. The reason there is a difference in the face amount values is because they are calculated using mortality 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 cremation 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 cremation is still guaranteed at today’s prices.
I realize the pre funding 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 | $1595.00 | $55.05 | $38.26 | $30.90 | $25.01 |
| 55 – 59 | $1595.00 | $54.04 | $39.38 | $31.32 | $26.98 |
| 60 – 64 | $1595.00 | $54.69 | $37.47 | $30.15 | $26.35 |
| 65 – 69 | $1595.00 | $56.52 | $39.25 | $32.85 | $27.13 |
| 70 – 74 | $1595.00 | $59.55 | $40.66 | $33.68 | $27.52 |
| 75 – 79 | $1595.00 | $64.48 | $45.18 | $37.38 | N/A |
| 80 – 84 | $1595.00 | $69.41 | N/A | N/A | N/A |
| 85 – 89 | $1595.00 | N/A | N/A | N/A | N/A |
| 90 – 94 | $1595.00 | N/A | N/A | N/A | N/A |
| 95 – 99 | $1595.00 | N/A | N/A | N/A | N/A |
All figures are based on cremation services of $1595.00 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) 535-4018.
Pre-Arrangement Frequently Asked Questions
What is pre-planning or pre-arrangement
When you plan in advance, you are making choices now based on your wishes as to how your final arrangements will be carried out. Thus, you can reduce family concerns the time of your death.
What do I need to do pre-plan?
At your convenience, you can meet with a member of our staff to discuss you options and preferences. When you make arrangements in advance, you’ll want to consider your site of choice, the committal service, and the type of permanent memorial. By making some or all of these decisions now, you give your family peace of mind, and also benefit financially.
What are the advantages of pre-planning?
The most obvious benefit is financial, but there are a number of emotional benefits, too. When you make arrangements in advance you have a better opportunity to make informed choices. If you decide to prepay, you guarantee today’s prices, and can take advantage of affordable payment plans. We can provide additional professional advice on pre-planning and pre-paying.
What is the difference between pre-paying and pre-planning?
When you preplan, you do not need to pay for everything in advance. When your plan is complete, the funeral home will keep file until it is needed and you will be charged the going rate at the time of need. However, if you prepay at the time you make your prearrangements, you can lock in today’s prices in certain situations for funeral related merchandise. We offer several affordable payment plans and will discuss various option with you to tailor a plan to meet your specific needs.
Where does the money go that I pre-pay into a plan?
Typically, 100% of the money you pre-pay will go into an insurance trust designated for final expense. The trust is irrevocably maintained to protect the funds and insure that no matter what they will be there when needed.
What if the funeral home was to go out of business or be sold?
Because your money is 100% trusted, irrevocably held, and governed by state law it will always be there for you. If the funeral home would ever be sold the purchaser is obligated to honor existing contracts. Bottom line is no one including the funeral home can access these funds without a certified copy of your death certificate.
What if I live 20 years, is it still guaranteed?
Once a prepaid funeral contract is in place, it is in place forever. Regardless of the time lapse from inception until needed it is guaranteed as paid in full from day one until you pass.
Benefits of Pre-Arrangements
Emotional Benefits
- More time to consider your options: You and your family will have time to research your options and make well informed decisions, without feeling rushed.
- A Sense of Accomplishment: You’ll feel good that these arrangements have been taken of.
- A fewer Family Concerns: Your surviving family members will have less to worry about in the event of your death.
Financial Benefits
- The Pre-Payment Options: When you pre-pay, it is possible to lock in today’s prices in certain situations for funeral-related merchandise.
- Your Family Keeps More: When you pre-pay, your estate will owe nothing on funeral expenses. More of your assets and life insurance proceeds will go directly to your family.
- Save the Amount You Need: Once you gain an understanding of all cost involved, you can earmark a portion of those saving to cover the costs.
- Fewer Last Minute Expenses: When you plan in advance, your family is less likely to incur additional expenses at the time of the funeral.
Death Away From Home
When funeral arrangements must be unexpectedly made away from home, we will assist you in any way that we can. Once contacted we are in position to look after your interests and coordinate every detail.
Call Hindman Funeral Homes immediately toll-free 877-549-7514 day or night
It is imperative, if a death occurs away from home, that you call first to assist in coordinating all out of state arrangements. Not only will it eliminate duplicate expenses, but all funeral providers are not the same and we will do our very best to be certain that we get the best available funeral provider to assist wherever death may occur.
It is not necessary to contact an out of state funeral home. Hindman Funeral Homes will coordinate all details as a courtesy and help to insure that the best out of state funeral provider is found.