Funeral planning can be quite challenging when you don’t want to think about it. However, in the event of death, certain aspects of the funeral must be taken care of immediately, and they can be costly if they’re not already planned out in advance. For this reason, many people choose to purchase funeral plans as part of their estate planning strategy so that they can save money on their final expenses and also relieve the burden on their loved ones after they pass away.
The Benefits Of Prepaid Funeral Plans
If you’re looking for a cost-effective way to cover funeral expenses, prepaid funeral plans may be an option. This plan allows you to pay for a certain amount of services in advance and lock in your rate, typically resulting in lower costs than if you paid as you go. This can be especially useful if you have young children who might need financial assistance later on or if there’s a high likelihood that others will step up and help with expenses.
Another potential benefit is that some states cap price increases on some types of funerals and keep them relatively stable over time; it’s one more way to ensure your investment stays put. Look at these four tips for evaluating prepaid funeral plans before making a decision about which one is right for you.
How It Can Save You Money
The average cost of a funeral in the UK is £5,033. A prepaid funeral plan can help to save money on your final expenses by paying for your burial before you pass away. Also known as life insurance with a death benefit, they are essentially death plans that help to cover basic services like caskets and cemetery plots.
According to a study by funeral trade publication Prepaid Obituaries, roughly 3 in 10 people don’t have any sort of savings in place for their funeral or burial expenses. That leaves many families having to rely on credit cards and loans just to pay for final costs. If you want help ensuring that you have funds set aside for these end-of-life services, consider getting a prepaid funeral plan.
How It Can Save Your Family Time And Stress
If you’re looking for a way to help prepare your family for your passing, prepaid funeral plans are an easy solution. Rather than dealing with making arrangements at a time when emotions may be high, prepaid funeral plans allow you to plan and help your loved ones avoid some of those financial burdens. After all, a death in the family is stressful enough without having to deal with added stressors like finances.
A prepaid funeral plan makes it so that your final wishes can be carried out quickly and easily, as well as leaving behind less financial burden on your loved ones. It also allows them to choose their services or customize them without worrying about the cost.
The Common Misconceptions About Funeral Planning
There are a lot of common misconceptions surrounding prepaid funeral plans. One such myth is that families can’t access the money once it has been set aside in one of these types of accounts. Any money held in a prearranged funeral plan can be used to cover any expenses associated with someone’s passing, including burial or cremation costs and death taxes.
Another big myth is that people have to set up a funeral plan before they die. While you do need to create your funeral plan and designate an agent beforehand, you don’t have to pay for your planned services ahead of time—the agent merely prepares them for use after your death occurs.
Why Should You Consider This Option?
When it comes to planning for your funeral, if you do nothing, you’re likely to leave your loved ones with a difficult situation. You might expect them to drain their savings accounts or take out a loan to pay for a funeral. It’s an unappealing scenario, but one that might come true if you don’t plan. That’s why many people choose prepaid funeral plans.
By setting aside money now for your final expenses, you can spare family members years of worry and debt down the road. This is especially important as more people are retiring without personal savings like IRAs or pensions.
Where Can You Buy A Pre-Paid Funeral Plan From?
You can buy a pre-paid funeral plan from your local funeral director. These plans range in price and coverage, but generally, they include costs such as opening and closing caskets, shipping fees, burial clothing, embalming fees and administrative expenses. Because you pay for your prepaid funeral plan upfront with cash or check (sorry, no credit cards), it’s just like buying a big TV: You own it when you walk out of the store.
The key difference is that when you buy a prepaid funeral plan, there’s a good chance your coverage will be worth more than you paid for it—something that doesn’t often happen with electronics.
How Does This Affect You Financially In The Future?
People who purchase a prepaid funeral plan will be able to financially protect their family in case of a loss. This ensures that when you pass away, your family will have peace of mind knowing that all financial expenses associated with your death and burial have already been taken care of. If they decide not to use these funds, they can be given to a charity or family member if they choose.
There are certain types of people who may find that they aren’t able to take care of all of their financial affairs at one time due to health reasons or other life circumstances. If you think you might need help in handling some matters down the road, here is what you should do now: Find a good attorney who can write up a simple power-of-attorney agreement. The first thing on that document is what to do with your finances if something happens. This means being thoughtful about making sure that someone who has your best interests at heart (but isn’t a blood relative) takes over for you if needed. Prearranging funeral services ahead of time will ease any worries about how things will get handled when no one else is available to make those decisions.