Most people never think about their funerals until it’s too late, and family members and loved ones must cover the costs. If you’re determined to avoid putting this responsibility on them, a pre-paid funeral is a solid plan. With this strategy, you can lock in current costs and pay ahead to allow your family and friends proper, stress-free time to grieve when you pass.
Although it’s not fun to think about the end of life, planning for your final days and funeral will make it much easier to say goodbye to your loved ones. You’ll know everything is covered, and there will be no stress or finances to worry about. Learn more about finding pre-paid funeral plans, what’s included, and other helpful information.
How Do You Find Pre-Paid Funeral Plans?
There are a few places where you can locate a pre-paid funeral plan. Typically, you must speak to someone at a funeral home or a cremation center to determine their options. They will provide a list of options and the price point expected for each service.
It’s beneficial to shop around and look at all your options with a pre-paid funeral plan. Some locations might be more affordable but offer fewer selections than the more expensive ones.
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What’s Included In a Pre-Paid Funeral Plan?
Most pre-paid funeral plans are customizable, allowing you to add items or leave them out to fit your budget and desired funeral experience. There are some items you can’t lock in the price for, but you can for most aspects.
Items you can include in a pre-paid funeral plan might be:
- Visitation
- Type of service
- Flowers
- Music and reading
- Keepsakes and mementos
- Reception
Planning for your funeral ahead of time also allows discussion of particular religious customs and who you want to handle certain aspects of the gathering. It’s comforting to establish these things ahead of time to give you peace of mind in your final years.
Is There Financing Available for Pre-Paid Funerals?
Making funeral arrangements can be an expensive process. Luckily, most funeral homes will permit payment plans, so you don’t have to drop all the money for the event at once. You can do monthly payments or spread them out over a specific period.
There are also ways to finance the payments for you to cover some and your loved ones to cover the rest after the funeral if you decide that’s the best way. Most locations are flexible in financing options for pre-paid funerals, but it’s helpful to shop around for an ideal rate.
Is It a Good Idea to Prepay for a Funeral?
According to one study, the average life expectancy in the United States is falling. Thus, it’s an excellent idea to make funeral plans. However, is it a practical idea to prepay for a funeral?
Paying for a funeral early can help you lock in current price points. It also gets payments out of the way, which helps your family.
Unfortunately, many funeral homes take advantage of prepayers by charging higher costs now than you would ever need to pay. Thus, a common alternative is to preplan your funeral and leave money for your loved ones to pay when the time arrives for the event.
What Happens to the Leftover Money After a Pre-Paid Funeral?
When you prepay for a funeral, you assign a beneficiary to everything. After the funeral ends, the beneficiary will access all the leftover funds and other items left behind.
You can assign anyone to be your beneficiary. However, ensure you do so and write that person into your will or final plans. Otherwise the state where you live will disperse your money and belongings based on their policies.
Pros and Cons of a Pre-Paid Funeral
It’s always vital to consider the best and worst aspects of something before making a final decision. With something as final as a pre-paid funeral, it’s especially critical.
Here are some pros of investing in a pre-paid funeral:
- Peace of mind
- Locking in today’s cost
- Knowledge of arrangements
- Specified funeral home
Unfortunately, there are also some disadvantages to this process. Some may avoid it thanks to these.
Cons include the following:
- No refund if you change your mind
- Inability to transfer from one funeral/cemetery location to another
- Less money for other expenses, such as medical ones
Things can go wrong and cost you and your loved ones more than anticipated. Luckily, it’s rare that you would want to switch locations or that a funeral home would go out of business. However, it’s critical to consider these risks ahead of investment to determine if it’s worth it to you.
Items to Consider in a Pre-Paid Funeral
Whether you’re looking at a pre-paid cremation or a burial, there are many items to consider when investing in a pre-paid funeral. Practical items include making amends, determining religious necessities, and more.
In terms of what you’re paying for, items to consider include the following:
- Burial type
- Decor
- Reception
- Location
- Casket
- Headstone
- Funeral style
Work with your loved ones and funeral home to get the details in order. From there, you can determine an expectancy for the price point.
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Pre-Paid Funeral Alternatives
If you don’t want to worry about prepaying for a funeral, there are alternatives. These are a little less put together but effective all the same.
Popular pre-paid funeral alternatives include the following:
- Investing in a life insurance plan
- Creating an after-death bank account
- Specifying funds for it in your will
- Investing in funeral items versus policies
- Telling loved ones your wishes
These are all ways to prepare without too much commitment. There is security in pre-paying for a funeral, but it’s also a risk. If that’s not something you want to take, consider one of these other effective routes.
Final Thoughts on Pre-Paid Funerals
Although it isn’t fun to think about passing, planning and paying for your funeral ahead of time makes life and grief less stressful for you and those you care about. It also permits a final say in your life’s sendoff.
Like anything, there are pros and cons to pre-paid funerals. It’s up to you to determine if paying ahead of your passing is right for your and your loved one’s lives.
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