Although we can’t predict our death, we can regain a sense of control by preplanning or prepaying for our funeral.
When you preplan your funeral, you can personalize your funeral to your taste and lessen the stress on your loved ones knowing it is all taken care of.
If you decide to preplan your funeral, it doesn’t mean you need to prepay for it too. It is up to you whether you do one, both, or none of these options. Staying organized can help make preplanning your funeral less overwhelming, as well.
Here is a simple breakdown of how preplanning and prepaying works and how it can benefit you and your loved ones.
Preplanning Your Funeral
According to the NFDA, preplanning your funeral allows you to have peace of mind and comfort knowing that thoughtful decisions are taken care of, and your loved ones won’t have to arrange the funeral while they grieve.
When you preplan your funeral, you can decide your funeral home of choice, determine your budget, and plan decorations and other personal touches. You should note that you are not necessarily stuck with the funeral home you choose — if you move or come across a different funeral home, some funeral homes allow you to transfer your plan to another funeral home, but there may be an additional fee. The same goes for prepaying for your funeral.
Prepaying Your Funeral
When deciding whether to prepay for your funeral, some important questions to consider are:
- Are you paying for everything, or just certain details, such as the casket?
- How are you paying for your funeral?
- What will happen to the money you use to prepay?
- Can your plan be transferred to another funeral home?
- Can your plan be canceled if you change your mind?
There are different prefunding funeral plans you can choose from. Funeral trusts can be used to prepay for your funeral and depending on the type of trust, may be administered by the funeral home, bank, cemetery, state, or state association.
Preneed insurance also can be used to prefund funerals in most states. With this payment plan, the funeral can be paid for all at once, or by installment. Some other funeral prepayment options are payable-on-death accounts, certificates of deposits, or private trust funds.
It is important to check into your state’s laws on prefunding funerals, as they have control of what is allowed or not.
What are your thoughts on preplanning and prepaying funerals? Share your thoughts in the comments below!