Should You Set Up a Funeral Pre-Arrangement Plan?
If you're worried about leaving behind the burden of funeral costs when you pass, there are plans you can look into to prevent this from happening. You can make a plan with a funeral home and pay for your own funeral beforehand. These plans can range from $10,000 to $25,000 in cost. You are able to pay this in full upfront or start a payment plan with your funeral home.
What Is Included in a Funeral Pre-Arrangement Plan?
You are typically able to create your own plan and include anything you'd like in that plan. You can include your headstone, casket, burial, cemetery plot, etc. Most pre-made plans just include the basics:
- Death certificate
- Burial costs
- Funeral home expenses
- Clergy expenses
If you'd prefer to select a basic pre-made plan like above, the cost would be much lower than if you chose to include the extras like the headstone and casket. The more amenities you add to your plan, the higher to final cost will be.
Guaranteed Vs Nonguaranteed Plans
When setting up your plan, you can choose a guaranteed or nonguaranteed plan. If you select the guaranteed plan, you will be paying all costs upfront. The price that you originally planned on paying with this option will not change, regardless if prices do go up by the time of your funeral services.
When you choose to go with a nonguaranteed plan, if the prices of the services go up from the time the plan is set up, your surviving family will need to pay the cost differences. If by chance, you pay too much there is a chance to get a refund of the money that wasn't used depending on which state you live in.
Pros and Cons of Funeral Pre-Arrangement Plans
- Your family will not have the burden of planning your funeral.
- You are able to plan the funeral you want for yourself.
- With a guaranteed plan, you are able to lock in today's prices.
- You are able to pick the funeral home.
- Refunds are generally not an option.
- Your funeral home may close down by the time of death.
- You need to inform your family so they don't accidentally purchase a whole new funeral plan.
Is Funeral Pre-Arrangement a Good Idea?
Depending on your goals, it could be a good idea. If your goal is to ensure that your family will not have to shoulder the cost of your funeral, this is a great option. It's also a great way to ensure that any life insurance or death benefit money your surviving family receives does not need to be spent on your funeral, but instead can be put away for other uses.
To learn more about funeral pre-arrangement plans, contact a funeral home near you.