If I make prearrangements and prefinance them, how do I
know my deposit will be safe?
The Illinois Funeral or Burial Funds Act, established in 1955, requires that preneed funds be placed in trust in an Illinois bank or trust company or federal or Illinois savings and loan institution or federal or Illinois credit union or with an insurance company if insurance is the choice of the prearrangement. To be sure your funds are handled as required by the Act, we suggest you:
- Make arrangements only with licensed firms.
- Be certain your preneed funds are placed in a trust.
- Read the preneed trust contract.
- Let your family know about your wishes.
First, be sure that you make your deposit with an Illinois funeral director who is currently licensed to handle preneed funds. His or her license should be prominently displayed and will be signed by the Comptroller of Illinois. The license and the professional whom you select are your assurance that your funds will be properly deposited and will be periodically audited by the Comptroller.
When you make funeral prearrangements, the funeral home will prepare a preneed trust contract which states the amount of money you have paid, the services which you have selected, and the funeral home's responsibilities. Read the contract carefully to be certain that you have arranged everything just as you want it. Should your circumstances change, you can obtain a refund of both principal and earned interest in accordance with the contract you sign.
Be sure to inform your family or a close friend or your legal representative about your prearrangements. Place a copy of your prearrangement contract along with your other wishes regarding your final disposition in a place where they will be available when needed.
Can I guarantee the price of my funeral when
prearrangements are made?
Many funeral homes offer guaranteed prefinanced arrangements. This means if you select your service and pay for it in full now, the funeral home will guarantee to provide the service at any time in the future. Prefinancing under this type of arrangement allows an individual to pay for their funeral today with no additional charges required at the time services are performed. The earnings on the funds will be used to compensate for future price increases.
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