You never know when the end will come, but something is for sure — there are costs associated with your death. If you do not have a plan in place, your family will be faced with extra expenses after you die.
However, if you and your family are prepared, the situation may not be as hard to handle as it could be. One of the best ways to prepare for these expenses is by setting up life insurance.
In this article, we’ll talk about what prepaid funeral plan are and how they can make your future worry-free.
1. What are the benefits of prepaid funerals?
Prepaid funerals are a great way to make sure that your funeral expenses are taken care of. You can save money by buying a prepaid funeral policy, which can also provide you with a range of benefits such as:
– No need to worry about funeral expenses
– No need to worry about getting a loan to cover your funeral
– Let your family plan your funeral with the things you want
– Let your family buy you flowers
– Pay for the burial following your death, among others.
2. How does a prepaid funeral plan work?
A prepaid funeral plan is a funeral package that you purchase when you’re alive. You pay a lump sum or pay it in installments that will cover your funeral expenses. And it will be used for the services and products that you choose.
There are many ways to purchase funeral plans, but the most prominent one is through funeral homes generally. The prices can be really high, so prepaying may be a good option for you.
A funeral home will work with your credit card (or your bank) to help set up the payment plan. Before you can place the order, you’ll need to have your identity verified to act on the contract. The funeral home will prepare the paperwork, disburse your funds, and give you a set time to receive the service.
The cost of a funeral is a significant expense, and sometimes prepaying offers some relief. Experts tell us that approximately one-fourth of Americans plan to spend more than $1,000 on funeral expenses as they get older.
Going ahead with a prepaid funeral plan gives you peace of mind. You have some control over the amount of money you pay for every service.
3. How much do prepaid funerals cost?
The average cost of funerals is $8,000. In comparison, an affordable prepaid funeral costs around $500 to $750 on an installment basis. This cost includes everything from the casket to the cemetery plot, so you don’t have to worry about those expenses after you pass away. While this sounds like a lot of money, the reality is that you’ll only be paying this amount once or for a limited period. Plus, if you can afford to designate a portion of your money towards your funeral, this could help you save money.
4. How can you pay for a prepaid funeral?
There are many ways you can pay for a prepaid funeral. The most common way is to pay in Advance with a lump sum payment. You can also pay for a funeral in installments over a period of time. You can also do a combination of both. Finally, you can pay for a funeral with a life insurance policy.
How to make Advance Preparation
Prepaid funerals, also known as pre-planned funerals, can help you prepare for your own passing and the expenses that come with it. In this article, we’ll talk about the benefits of making advance preparations and how to get started.
1. If you want to plan ahead, you should make a funeral budget.
It’s crucial to align expenses with your budget. Anything beyond the expected cost of your year can easily ruin everything. The larger your funeral plans are, the harder it will be to keep your expenses within a realistic budget.
We recommend that you begin preparing a death budget to determine what you can comfortably afford. It might be difficult when there aren’t any immediate plans when the time comes. Having a plan can make things manageable once you get a general idea of how the expenses will break down for your final expenses after you have passed away.
2. Choose a prepaid funeral.
There are two types: Funeral homes (aka funeral homes or cemetery companies) and prepaid insurance (pre-need funeral services). If you’re looking for a company specifically for prepaid funerals, you’ll need to do some research to find the right one for you.
3. Picking a carrier or hearse.
choosing a funeral carrier is just as important as the services they provide. Funeral carriers are an essential part of the services that are provided to ensure the safe transit of your loved one from the place of passing to the place of burial or cremation. In regards to funeral transport, a number of options are available — some pertaining to the budget and simplicity of the ceremony, and others pertaining to the family’s wishes. Everyone has their own preferences, and it’s important to know what kind of service you want to have.
4. Funeral Homes.
Choosing a funeral home is one of the important decisions to make when planning for a funeral. However, those purchasing prepaid funeral plans are often shown different options than those who are paying out of pocket, and this can create confusion and stress for those who feel pressured to pick an undertaker that is more aligned with their pre-determined plan. Consult your agent for proper information.