Are Prepaid Funerals a Good Idea?

Some men and women know exactly what they would like their funeral to look like, and may even have a budget in mind. For other individuals, they don’t want family members to feel obligated to plan and finance a funeral after their passing. Regardless of the reason, there are plenty of different motivations that men and women have to prepay their funerals. One of the biggest dangers about prepaying a funeral is the fact that there is potential for a miscommunication with the children. In the past, there have been individuals who have prepaid their funerals and passed away but never let their family in on the secret. As a result, the family will put out all of the money necessary for a proper funeral.

They will find out later that their expenses were all in vain because there is was a specific amount of money that had already been paid forth for this purpose. This is what happened to the family of Evie Robinson, a 49-year-old woman who failed to tell her children that she had already paid for the expenses associated with her burials. Unfortunately, Robinsons’ family members were not able to get their money back from the payments that they made, and simply lost $8,000 in the process. Most modern life insurance policies and burial policies don’t have a date on payouts, but some older policies may have redemption clauses.

These are clauses which make it so that a claim must be made within a certain period. For example, policies with a redemption clause can be claimed and rescinded after the burial as long as the mistake is discovered within 30 days in some instances. Sometimes, a man or woman may prepay the funeral with a specific director. In these cases, the family members who may have accidentally paid for a funeral that had already been covered may just need to go to the director or service and ask for their money back. In some instances, the director or service will be more than happy to oblige. In other situations, there may be payments that cannot be refunded such as the expenses of a casket.

According to the AARP, the average cost of a burial is $8,000. The National Funeral Directors Association recommends that men and women do not prepay their funeral because they can never anticipate the actual cost of the funeral. The may set aside too much money and overpay, or may set aside too little and cause the family members to still pay out of pocket costs in order to cover the expenses needed for the burial. One funeral director says that some prepaid plans can actually end up costing the payer more in payments over time then the amount that the funeral actually costs in the end. If you really want to reserve money for your own funeral, then the best idea is to set up a “payable upon death” account.

This account will earn interest and be available for an emergency. Yet it can also be used to cover the costs of a funeral after your passing. You should talk to your spouse and children about funeral plans whether or not you believe that you may be close to the end of your life. By making sure ta they understand your desires, they will know how to best use the money that you have set aside for the future. Having a funeral plan ready to go will help your loved ones to understand how to best honor you on the day that is set aside for your remembrance. If you have more questions about prepaid funeral plans or want to talk to a professional about the future of your estate, then use this directory to find a professional near you!