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F INAL E XPENSE P LANNING

F INAL E XPENSE P LANNING. Are Your Funds Protected ?. Consider This. Most significant events in our lives require planning; you rarely just let them happen. Funerals Require Planning, Too!. Like other major life events, funerals require planning.

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F INAL E XPENSE P LANNING

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  1. FINALEXPENSEPLANNING Are Your Funds Protected?

  2. Consider This . . . Most significant events in our lives require planning; you rarely just let them happen.

  3. Funerals Require Planning, Too! • Like other major life events, funerals require planning. • Today, pre-arranging and prefunding one’s own funeral is not uncommon. Of all Americans aged 50+ years, it is estimated that: • 34% have preplanned their own funeral.* • 24% have prepaid at least a portion of funeral or burial expenses.* * AARP Funeral and Burial Planners Survey (2007).

  4. One Important Step You don’t have to decide everything all at once! Set aside funds today… When you and your family are ready to plan out the details, you can meet with the funeral home of your choice to make arrangements.

  5. In the past, there have been four common ways to pay for afuneral: • Life Insurance: • These are funds intended to be left to your family and may not be immediately available. • Personal Savings: • These are funds for day-to-day living. In the event of a lengthy illness, they may have eroded significantly. • Credit Card or Loan: • This approach leaves heirs in debt. • Family and Friends: • Borrowing from family and friends can be embarrassing as well as a financial strain to repay. • Fortunately, there’s a better option. . .

  6. Funeral Expense Trust A designated, prefunded plan that combines the financial stability of insurance with the security of a trust.

  7. How Much Does a Funeral Cost? With so many expenses associated with a funeral, the cost can easily exceed $10,000. Casket $2,400 Professional Services $1,500 Embalming/ Cosmetology $600 Memorial Service $1,000 Transfer Remains $200 Vehicles (Hearse/Limo/Van) $500 Grave $1,000 Cemetery Charges $1,400 Headstone $2,000 Flowers $250 Misc(Obituary/Death Certificate) $300 Total$11,150 If something happened to you today, how would your funeral be paid for?

  8. Are Your Funds Protected? • Among people turning 65 today, 69 percent will need some form of long-term care.* • The national average cost of long term care is $68,255-76,460/year** • Annual growth of 4% over the last five years** • Many people who need long-term care will need to qualify for Medicaid at some point • This may require you to reduce your countable assets by paying the nursing home, making allowable purchases, or exempting assets from consideration. Assets you set aside for your funeral expenses! • Putting your funds into a trust for funeral expenses exempts that money from Medicaid consideration * American Association of Homes & Services for the Aging (2009) ** Genworth Financial Cost of Care Survey (2008)

  9. Funeral Provider Paid Within 48 Hours How a Funeral Trust Works Pre-Planning Funds Policy Value GROWS! Irrevocable Funeral Trust Life Insurance Policy Claim Paid Policy Assigned to Funds avoid probate costs and delays; expenses covered immediately Fund from Savings, CDs, Free Withdrawal, etc . . . Protected funds earn tax-free interest until time of need Excess Funds Paid to Estate

  10. Fund Protection Nursing Homes Irrevocable Funeral Trust Probate Creditors Medicaid* * Eligibility varies by state.

  11. How the Trust Compares * Some state regulations apply; please consult your legal advisor. ** Unless put into trust for funeral expenses.

  12. About NGL • 100+ Years of Financial Stability • $2.02+ Billion in Current Assets • A- (Excellent) Rating from A.M. Best • A Leader in Funeral Expense Planning National Guardian Life Insurance Company Madison, WI Ratings current as of August 1, 2009 Financials current as of December 31, 2008 National Guardian Life Insurance Company is not affiliated with The Guardian Life Insurance Company of America a/k/a The Guardian or Guardian Life.

  13. To Get Started… Choose a source to fund your Funeral Trust: Lump sum transfer from savings, CDs or Money Market accounts Transfer funds from an existing life insurance account [1035 Exchange] Add to the fund in installments over a period of one year Complete the simple paperwork Application & 1035 & Replacement Form (if needed) Prepare the remittance or transfer Done!

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