Should You Prepay Funeral Costs in Advance?

Funeral prepaying considerations

A key advantage to planning ahead is that it enables you to control the cost of your funeral. One way you accomplish this is by selecting the services and merchandise you want at the prices you want to pay. You decide how many visitations will be held and what type of vehicles will be used. You can select a simple wood casket or an expensive one made of bronze. These choices and others can dramatically affect the cost of your funeral. And if these decisions are left to your survivors, they might spend more than you wish.

 

How To Lock In Today’s Funeral Prices

In addition to making price-conscious selections, the other way to control costs is to take measures to lock in today’s prices. What might this save? Consider, for example, a 65 year old woman, in good health, who has pre-planned a funeral that would cost $7,000 today. Most likely, she’ll live another 20 years or more. Assuming we experience an average rate of inflation of 3% per year, her funeral could cost over $12,000 in 20 years! To help you control the cost, many providers will guarantee to deliver services and merchandise at today’s prices if you enter into a pre-need funeral or burial agreement and pre-fund your funeral. Check out our article on Pre-need Funeral and Burial Contracts.

How to Minimize the Risk of Prepaying

Before you prepay a funeral home or other funeral service be sure to do your homework. How long have they been in business? Are you confident they will still be in business when you need their services? Do they have a good reputation? Check on them with the Better Business Bureau. Is the prepayment refundable if you or your family ultimately decides not to use them?

The best way to minimize your risks and maintain the maximum flexibility is to invest in final expense insurance or set aside funds in a funeral trust.

For more on funeral planning: Check out our Wise Planning System

 

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