Better understanding the pros and cons of prepaid funeral plans can assist you in making an informed decision regarding your end-of-life arrangements. If you are having a difficult time making a decision, be sure to speak with a trusted loved one who will have your best interest in mind.
Pros and Cons of Prepaid Funeral Plans
Prepaid funeral plans offer some benefits that may seem appealing, however there are also risks involved in paying for a prepaid funeral plan. It's important to fully understand the pros and cons of a prepaid funeral plan prior to making your decision.
Pros of Having a Prepaid Funeral Plan
The pros of having a prepaid funeral plan include:
- You can make your own funeral arrangements without leaving it up to a loved one
- You lock in a price that may go up in the future
- Choose your own cemetery plot
- May relieve your loved ones of some stress when it comes to planning and paying for your funeral
Cons of Having a Prepaid Funeral Plan
The cons of prepaying for a funeral plan:
- Funeral home may go out of business, and you may not receive a refund.
- Prepaid funeral plans may vary and be inflexible in terms of options or transferring plans.
- If you change your mind about any aspect of your funeral plan, you may not be able to alter your pre-made plans.
- Pre-paying for a funeral plan can be quite expensive and potentially unnecessary if your beneficiary will be receiving death benefits via your life insurance policy or through burial insurance.
Are Prepaid Funeral Plans Worth It?
Prepaid funeral plans are a great idea in theory; however, if you change your mind, are not able to be buried in the same location, or if the funeral home goes out of business, you are at risk of losing all the money you prepaid. This not only impacts you, but can negatively impact your beneficiary who will subsequently be responsible for paying for your funeral.
What Is the Average Cost of a Prepaid Funeral?
Prepaid funeral costs range in their pricing. Many plans fall between $10,000 and upwards of $25,000, however pricing will vary depending on which services are included and excluded.
What Happens if Your Funeral Plan Company Goes Bust?
If the funeral home where you purchased the prepaid funeral plan goes out of business, you are at risk of losing all of your money that you put towards your funeral. If you have already passed away, your family will be left with paying for the funeral, and the money that probably would have gone towards your beneficiary will likely not be returned by the funeral home.
Which Funeral Plan Is the Best?
Choosing a funeral plan is a personal decision, so in terms of which is best, that will depend on your unique needs. Be sure if you opt to purchase a funeral plan that you fully understand all of the risks and benefits of doing so.
What Is Not Included in a Prepaid Funeral?
Prepaid funeral plans are customized to include and exclude anything you'd like regarding your funeral.
Are Prepaid Funerals Worth It?
Prepaid funeral plans are risky, especially when there are other, safer options available when it comes to creating your end-of-life plans. Ultimately, it is up to you to decide what decision is in your best interest.
