As we become more aware of massive fraud schemes, like the one perpetrated by Bernie Madoff, a recurring theme emerges from the stories told by the victims. They didn’t understand the investment strategy. Because these investors only concerned themselves with the promise of much higher returns than were possible with other investments, they put all their money into the  hands of swindlers like Madoff.

Those of us who gasp at our grocery bill and cringe when the utility bill arrives sometimes have trouble mustering up a lot of sympathy or compassion for these ponzi victims. At a tender young age, we were all taught that “if it sounds too good to be true, it probably is.” 

But I’m finding out that a lot of people choose to wear blinders during hard times. More and more I see working-class people cling to ideas that are “too good to be true” when it comes to planning for funeral expenses in tough economic times. 

• Many families still believe that Social Security will help pay for funeral costs. They are surprised to find that Social Security only pays a one-time, lump-sum death benefit of $255. What’s more, the Social Security death benefit is only paid if there is a surviving spouse or dependent child. So, if you’re a widow, widower or an adult child, there will be no payment.
• Families of veterans sometimes have the misconception that the Veteran’s Administration (VA) will cover their funeral expenses. In reality the VA only provides a grave space in a National Cemetery, a bronze or granite grave marker and a flag. All other costs associated with the funeral, must be paid by the family. Fortunately for families wise enough to choose our funeral home, our selection as an exclusive, certified Veterans and Family Memorial Care Provider permits us to extend benefits and savings beyond those provided by the U.S. Department of Veterans Affairs.

• Life Insurance has traditionally been regarded as a source of funeral funding. That’s why many people purchased life insurance in the past. Many of these policies, however, have a limited death benefit that does not increase in value over time. Because of the effects of inflation over the course of the policy holder’s lifetime, the death benefit that was once thought to be more than sufficient is found to be inadequate to cover funeral costs and other final expenses. Additionally, life insurance is often provided as an employee benefit. If a person is laid off or forced into retirement they may be surprised to find their life insurance benefits have decreased or stopped completely! Retired people are in a uniquely difficult situation. By the time a person retires and loses their employer-paid life insurance, the retiree is often uninsurable because of age or health condition. Most reputable insurance agents advise that life insurance is meant to provide income protection to survivors, not to cover funeral costs.
• With home values on the decline and stricter lending guidelines practiced by financial institutions, once reliable sources of funding like a Home Equity Line of Credit or Low Interest or No Interest Credit Cards are becoming increasingly hard to come by.

I urge folks who know they will soon be facing a funeral buying decision during this economy to come in to meet with me. This should happen as soon as possible, even before the death occurs.  More options are available the earlier you begin planning.  I can explain your various options, help structure a burial or cremation service to meet almost any budget and prevent emotional overspending.  Furthermore, I can show you some pre-paid funeral plans, strictly regulated by the State of Nebraska, which can be paid monthly before they are needed. Plus, my Preneed Bill of Rights details and guarantees your safety and satisfaction.

Don't rely on ideas that are "too good to be true." Preplanning a funeral, especially in a bad economy, is a good investment and a loving gift for your family.  Let’s get started, together, today.

Your Friend and Neighbor,

Greg Nabity