Prepaid Funeral Plans Explained
August 21, 2016
Funerals are by no means cheap, and a traditional funeral today in the USA costs in the region of $6,000. Sometimes this can even go as high as $10 000. That’s why prepaid funeral plans are so popular. It comes down to the huge expense involved.
Many factors Influence what you pay for a funeral. So many people want to pre-plan their funerals. You have to be careful with prepaid funeral plans. Don’t lose your money to unsavoury funeral providers who have mismanaged their money and gone out of business.
Prepaid Funeral Plans – Insist on Prices
Fortunately, the law requires funeral providers to give consumers accurate price information about funeral goods and services. With prepaid funeral plans, people want to know what happens to their money. People want to know if they can cancel the contract and get a refund if they feel they no longer want to go ahead with the deal or move to another area, then can the funeral plans be transferred? And what will they get? They want to know that the price they pay is locked in and that they won’t be required to pay out more money at the time of their death.
Prepaid Funeral Plans – Read Through Your Agreement
With pre-paid funeral plans, you can have peace of mind knowing that you are covering the costs for your last final event on earth. Ideally, your survivors won’t have to worry about funeral bills. With prepaid funeral plans, you get a Pre-Need Agreement. This Agreement deals with these points:
- whether the survivors will need additional funds when death occurs
- what happens in cases where the funeral house can’t get the products you wanted
There are some aspects that you need to be certain about before considering a prepaid funeral arrangement.
- Ensure a family member knows that you have prepaid your funeral plans. Make sure they know which funeral home you’re involved with
- Know exactly where your money is
- Get a general price list with up to date pricing for the merchandise and services you want
- Make sure your prepaid agreement outlines your rights as the purchaser. An important aspect is that the agreement must state how the company will use the money.
- You want to know that the funeral director
-deposits your money quickly in an account where it will make the most interest
– will notify you where your money is
– will advise you each year about the total value of your account
- You’ll also want to know if you need to pay tax on interest earned by the account.
- If the amount in your prepaid account is more than your funeral costs, then they will refund the excess amount
Prepaid Funeral Plans – Avoid Rising Premiums
There is far more to a pre-paid funeral plan than meets the eye, but its biggest draw card is that you avoid rising premiums. Once paid, that’s it. There’s nothing more your family will have to do. You can tailor your plan to meet your needs, and between your family and your funeral director, you’ll get the funeral you want.
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All info was correct at time of publishing