The Money Management Newsletter: Insurance Products
Who will your family turn to when you die?

By David Newman (with files from Adrinne Snow, Active Adult)
Money Management Newsletter, June 2007

It's a little known fact: that for some, the third most expensive purchase most Canadians will make, after their houses and their cars, is their funeral. The average cost of a funeral, plus cremation or burial, is estimated to be between $5,000 and $10,000. This could be a burden for those without any cash reserves so unless the funeral has been prepaid or covered with a "final expense" life insurance policy, the whole purchasing decision is likely to be made by your executor and family during a very stressful time for them and based on whatever financial resources they believe are available.

There are a number of options you can choose from to plan in advance for your funeral.

1. Do nothing. - As noted above this leaves your family and executor to arrange and pay for your funeral under the worst of circumstances. Family decisions may end up being different from what you would have wanted and may also create conflicts due to differences of opinion over costs and burial method.
   
   
2. Go to a funeral home and "Pre-pay" your funeral. - Funeral homes have a vested interest in selling you as big a funeral as possible, making it difficult for them to be objective in serving only your best interest. A pre-paid arrangement may not meet all of the intended expenses if funeral costs rise over time unless the "contract" guarantees such coverage.
   
   
3. Purchase whole life insurance to deal with the "final expense". - A life insurance policy will cover the costs of your funeral if the death benefit is large enough, however your family and executor may not know if the policy exists at the time the funeral arrangements are made. It also does not provide your family and executor with any direction as to the type of service or burial that you would prefer or a knowledgeable expert to guide them through the process.

To assist people with funeral planning, a company called Everest Funeral Package Insurance Services Inc. offers you and your family a knowledgeable expert who will work exclusively for you. The program is designed to save your family money, time, and some potentially painful decision-making at the time of your death.

"We have two groups of people at Everest." says Dean Toplas, V.P. Sales. "The first group, the 'Everest Advisors', is composed of people that we have trained to work with clients and help them develop their funeral plans. The second group, the 'Funeral Professionals', is a group of funeral directors that we have on retainer: they are the ones who deal with the families at the time of death and negotiate with the funeral homes"

The Everest funeral package enables you to fund funeral-related expenses. "You simply pay an affordable monthly premium or one lump sum", adds Toplas. "Everest does more than disburse monies to your beneficiaries at your death. It provides a unique service: an independent, professionally-trained personal adviser whom you and your family can call at any time for any needs relating to the pre-planning of your funeral arrangements."

Using its planning kit, the Everest adviser can work with you to ensure all of your wishes are documented for your family. At the time of death, a specialist is specifically assigned to your family. This individual acts as an advocate for your family, providing support, counsel, advice and information. He or she helps ensure your family receives good value for the money you have paid

Mark Duffy, co-founder and President stated, "Each Everest advisor undergoes extensive training to respond to concerns or questions your family may have in a way that will help address their needs, and your wishes, at what is often a very stressful and emotional time."

"The adviser works only in the interests of you and your family and not in the interests of any funeral provider," says Duffy. Your concerns about your family's well-being around the time of your death can be dealt with sensitively, confidentially and professionally.

You can involve the advisor as little or as much as the family wants. He or she can help save your family unnecessary expenses, and provide advice about making some of the difficult decisions regarding funeral, cremation or burial arrangements.

The Everest funeral package and adviser service is unique. If you are concerned about what will happen in the days immediately following your death, or about how to pay for one of life's larger expenses, services such as the Everest package may be right for you and your family.

The Everest package is recommended by CARP - Canada's Association for the 50-Plus - the leading national non-profit organization representing individuals over the age of 50.

For more information, visit www.everestfuneral.ca or call toll-free at 1-866-400-4944

Items of interest:

The Cornerstone Household Directory of Documents is a record-keeping tool designed to allow you to document important information about you and your family. When completed, the information contained within this 32-page directory will be invaluable to you as well as those closest to you. (See the forward 'There when you need it'.)

Estate planning is the process of strategizing how, when and to whom, the proceeds of your accumulated wealth is distributed. In today's complicated world, you'll need to understand the legal and tax ramifications of your requests, and how they impact the value of the estate and its obligations. The learning Centre - Estate Planning hopes to educate and inform you. However, we believe its better to do this planning with the help of professionals such as a lawyer with estate experience, as well as an accountant, insurance broker and investment advisor where their input is required.

Why should you have insurance protection, and how much do you really need? Insurance coverage is a major component when formalizing your estate planning process. Final Tax return considerations, and/or disbursements for family members, may require insurance to protect and guarantee capital for the estate as well as provide liquidity, and allow for the structuring of any charitable trusts or funds for business succession.

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