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Four Things to Know About Prepaid Funeral Plans

Date : January 15,2014
By : Marlena Stoddard

Prepaid funerals are becoming more common as people embrace the concept of handling their final expenses themselves. It allows consumers to choose the funeral options that they won’t, and their heirs won’t have to be burdened with the expense. Paying for a funeral today also helps people avoid the steady cost of inflation, but it’s important to work with the right company when investing in a pre-paid funeral.

Shop Around

Most people know how important it is to shop around for the right roofer, contractor or new car, yet they don’t shop around for their burial arrangements. Most areas have several funeral homes to choose from, so it is possible to comparison shop and choose the company you feel the most comfortable with.

Check the Fine Print

Funeral homes have different ways to handle pre-paid funerals. Some put the funds in a trust fund where they can gather interest. Others purchase life insurance policies that will be used to cover the final expenses. Customers must take the time to find out exactly how the money is handled and what kind of protection is in place to safeguard the funds. There may also be certain expenses that aren’t covered, or your chosen plan may no longer be offered and the fees for a new plan might be higher.

Look at the History

One of the great fears is that a funeral home will go out of business before the funeral is required. If you were in Florida, for example, you might choose a Milton funeral home that’s been in business for more than a few years. A company with decades of experience is less likely to fail and go out of business than one that just opened last year.

Refunds or Cancellations

There’s also the chance that you may change your mind about what you want. You could move to another area or find new options that are more appealing to you. Before signing on the dotted line, speak with the funeral home to determine if funds can be transferred to other facilities or if you can request a refund. The money that’s been pre-paid should be transferable in the event that the funeral home goes out of business or comes under new ownership.

Prepaid funerals are a smart option that can alleviate some of the burden from your family and heirs. However, it’s important to work with reputable agencies and read all of the fine print before signing the contract. Once you know you’re working with the right company, you’ll rest easy knowing that your funeral arrangements are all handled ahead of time.