Western Fraternal Life offers a Funeral Expense Trust which allows members to set funds aside for their final expenses. There are many advantages to choosing to invest in the Funeral Expense Trust. This article will answer some of the questions we typically receive.
Why should I purchase an insurance plan from Western using Western’s Funeral Expense Trust?
The Funeral Expense Trust allows your benefit to be paid to any funeral home, eliminating the challenge of: What if the funeral home changes its name? What if the funeral home goes out of business? Your loved ones will be able to tell the funeral home about your Funeral Trust so they may contact Western. For generations, Western has worked directly with funeral homes to ensure that they receive the benefits our members have set aside, without additional stress to the family.
How do I get a Funeral Expense Trust through Western?
You can purchase a Simplified Issue or Graded Death Benefit Whole Life Plan. You will name the Western Funeral Trust as the owner of your coverage (see further explanation below). The plans offer several payment modes including: single premium, 10-year pay, 20-year pay, or life pay. Please work with your agent to determine which payment plan works for you.
Who pays the premium for the Funeral Expense Trust?
The insured is responsible for paying all premiums when due.
What happens to my coverage if I have to go into a nursing home? I know people who have had to surrender their life insurance and then have nothing for their final expenses.
This is a great question! Western’s Funeral Expense trust has been designed to comply with the requirements of state and federal programs (ie: Medicaid). By placing your coverage in the Funeral Expense Trust, you are not the owner, and therefore the coverage is not your asset. The Funeral Expense Trust protects your benefit from the recovery and spend-down requirements of Medicaid. Using the Funeral Expense Trust allows you to keep your coverage for final expenses in the event that you have to go into a nursing home.
What is the maximum amount I can put into a Funeral Expense Trust?
The maximum funeral trust allowable varies by state. Most states (except MI) will allow Western’s maximum of $15,000. Consult your Western Agent or contact the Home Office to inquire about your state’s guidelines. (The Funeral Expense Trust is not available in Nebraska.)
What if my funeral costs less than the amount I have put in my Funeral Expense Trust?
The remainder of your benefit is payable to the “Estate of the Insured.”
Can I make changes to my coverage in the future?
No. Once your coverage has been placed into the Western Funeral Trust, it is irrevocable. No changes can be made.
Are CDs and annuities allowed to be placed into the Western Funeral Expense Trust?
No, only Western life insurance certificates can be placed in the trust.
Can an existing certificate be transferred to the trust?
Yes, provided that the total coverage amount does not exceed the maximum allowed by the Western Funeral Expense Trust ($15,000), or amount otherwise specified by the state.
The Funeral Expense Trust is a great way to ensure that you have taken care of your final expenses. To determine if the Western Funeral Expense Trust is right for you, give your Western agent or the Home Office a call today!
ACS, FLMI, Member Programs Assistant
Call 877-935-2467 to speak with a Western Fraternal Life Representative.