It is obvious that losing someone dear, is one of the most painful things and during that time, you don’t feel like doing anything. Organizing a funeral becomes a tough task, hence most of the people hire the funeral homes instead of doing it on their own but there are some of the families who are not as rich as the other people. They cannot afford hiring the funeral homes and paying huge amounts to them. Therefore, to save from the burden of organizing a funeral, most people plan to take prepaid funeral services.
Why Do You Avail Prepaid Funeral Plans?
Do you have life insurance policies, which include some death benefits? If you choose these policies then you must think about your family and if you want to decrease the financial constraint of your family, then these policies are the ideal options. If you are the only earning member of your family then you need to secure your family members by availing these insurance policies. But after your death, your family members need to spend a lot on your funeral ceremony and the maximum amount of your insurance can be spent on this ceremony. So it is suggested to save this cost and avail some prepaid funeral services before your death, so that, you can plan your funeral and pay this amount in advance. It is just like your life insurance policy, which will bear the cost of the funeral after your death, and decrease the financial burden of your family.
- According to the AARP report, more than 70% old people have not done any research and comparison in various funeral homes and directors. Picking a random funeral home near your home is not only a bad idea which may fall you into a trap but also may increase the difficulties for your children.
- More than 50% of the people pay the entire amount for their funeral in on go whereas some of the remaining people pay the amount in installments. Basically, the amount you pay for the pre-paid funeral contract is put to the trust fund account until the payer need or purchase the life insurance policy which will be later used for the funeral expenses.
- It is suggested to research on these prepaid funeral plans and then avail the most affordable one. This is not an investment, which will give you the highest return, but this is related to your family emotion, where you need to pay some attention.
- There are different rules for the pre-paid funeral services and contracts in different cities. In some of the states, the contractor refund the more than half of the amount, if the payer cancels the plan, however some of the contractors do not refund any amount on cancellation. Well, there is no guarantee of getting your money return while canceling the plan. Therefore, when you opt for the prepaid funeral contracts, ask all the important details regarding it.
One of the safest ways to save your money is to save them on your own. If you don’t want your funeral a burden for your children then you can save your money on your own. Yes, instead of giving your hard-earned money to the funeral homes, you can actually have a “totten trust” which is also very popular as the “pay on death” account. Whoever you designed as a beneficiary, can use your money for the funeral expenses.