Understanding final expenses in Texas

Some people want to leave money their family can use. Others want to select funeral arrangements in advance. Those goals overlap, but the contracts are not the same. Start by describing what you want handled and who you want involved.

Insurance funding does not make these two arrangements interchangeable. Read both contracts when both are involved.

• Who receives the money or provides the services?
• Is the full insurance benefit available immediately?
• Does an initial reduced-benefit period apply?
• Which funeral items have guaranteed prices?
• Which expenses remain outside the agreement?
• What happens if I move or choose a different provider?
• What happens if I cancel or stop payments?

Do not assume every cost is locked in or another funeral home must honor the original prices.

Before discussing a product, consider writing down your preferences, the person you want to involve and where important documents can be found. You do not have to settle every detail in one sitting.

The Texas Department of Banking regulates prepaid funeral contract permit holders. The Texas Department of Insurance regulates insurers, including insurance used to fund those contracts. Use the official guidance below when comparing an arrangement.

Ask John to explain the insurance questions. A funeral provider can explain its goods, services and prepaid contract.