NGL’s  Legacy Safeguard Funeral Expense Insurance

Like most people, you’ve probably set aside money to pay for the important events in your life:  a new house, a vacation, college tuition for the kids, and maybe a wedding.  Planning ahead is a good idea because you can make sure the money will be there when needed.

What about Funeral Planning?  Have you  given that any thought?

Sound familiar?  Like other major life events, pre-funding your funeral will give you peace-of-mind, comfort, and assurance knowing that money will be there for your final expenses.

According to a 2005 study by the National Funeral Directors Association, 90% of respondents said they are interested in pre-funding their funeral.  Yet, according to a 2007 survey by AARP, 60% of respondents have never been contacted about pre-funding their funeral.

How much does a funeral cost anyway?

According to a 2004 AARP report, the total can easily reach $10,000 when the costs of cemetery property and a grave marker are included.  If you already own cemetery property, then plan on spending at least $6,000.  (Costs are significantly higher in certain parts of Florida.)  Of course, the actual cost will vary depending on what type of service you ultimately would like to have.

How will my survivors pay for my funeral?

Few people have the resources to pay for a funeral outright.  Without advance planning and funding, your survivors may need to reach into savings, take out a loan, or even sell personal assets.  Money set aside in savings accounts may be tied up with probate delays.

Where do I get the money?

You may already have it.  It may be a rainy day fund, a Certificate of Deposit or a money market account.  By using money from those sources to fund an insurance policy, you’re giving your family the gift of peace-of-mind.   NGL’s Legacy Safeguard policy will enable you to fund your final expenses and make life that much easier for those left behind.

Can I set aside funds dedicated to funeral expenses in advance? 

Absolutely!  NGL can help you set funds aside with a life insurance plan specifically designed for this purpose.  Selecting how much you would like to spend on your services is all it takes.

How does the plan work?

It’s simple.  A life insurance policy is purchased to cover the anticipated costs of your funeral.  The policy is then assigned to an irrevocable funeral trust.  This assignment offers two advantages:  (1) at the time of death, policy proceeds do not have to go through probate and are available immediately to pay your final expenses, and (2) the policy is not considered an asset if you're determining Medicaid eligibility.  (Note: for Medicaid spend-down purposes you should consult an elder law attorney.)

Protected funds in the funeral trust earn interest (tax-free) until time of need.  The funeral provider is paid within 48 hours.  Excess funds are paid to your estate.

How do I know these funds are secure and will be readily available?

The funds in the policy will be used first to pay your funeral expenses with any excess returned to your estate.  By irrevocably assigning your policy and permanently transferring all ownership rights to an NGL Trust, you’ll receive the following benefits:

• May give you the ability to exclude your policy as an asset in order to qualify of Medicaid and Supplemental Security Income (SSI)
• Policy proceeds are paid to the Trust, which then pays funeral costs
• Funds set aside in the Trust to be used for funeral expenses are protected from creditors such as nursing homes, hospitals, lawyers, etc.
• Proceeds used for funeral expenses will avoid probate costs and delays
• Your NGL policy benefit will increase with simple growth income tax free [(per IRC Sec. 101(a)]

Trust Options

The NGL Trusts have no trust fees, and can be used in addition to any other trust that you may already have.  The process is simple, and, in many states, the assignment to the trust is part of the application.

NGL Funeral Expense Trust benefits

• $12,500 maximum
• Protects funds form Medicaid spend-down upon effective date of transfer
• The Trust is policy owner and beneficiary
• The Trust will pay funeral costs with any excess funds going to the estate of the Insured
  • Note:  $12,500 maximum for the NGL Funeral Expense Trust.  Amounts over $12,500—up to $50,000 (total per life)—must go into the NGL Estate Planning Trust

NGL Estate Planning Trust benefits

• $50,000 maximum
• Funds excluded from Medicaid spend-down after five years
• The Trust is policy owner and beneficiary
• Allows you to name a secondary beneficiary for excess proceeds
• The Trust will pay funeral costs with any excess funds going to a named beneficiary or estate of the Insured

As with any trust (1) you are not able to surrender, loan or receive a premium refund after the “free look” period; (2) you are not able to change ownership or beneficiary; and (3) you are not able to change the policy face amount or plan.

Final expense planning is the wise and considerate choice for your loved ones and for your own peace of mind. 

Don’t leave financial burden as your legacy.

Funding life’s final expenses is the last great gift you can give.

No major life event ever plans itself.  Take a moment now to prepare for the future.  After all, if not you…who?

Click to view the NGL Safeguard brochure