Your Guide to Funeral Planning | 05.18.2023

All You Need To Know About Prepaid Funeral Plans

All You Need To Know About Prepaid Funeral Plans

Reviewed By: William Prout

Cross Checked By: Joshua Siegel

4 min read

Funeral Prepayment Plans: What Are They, And How Do They Work? 

Funeral prepayment plans are arrangements you can make with a funeral home to pay for a funeral well in advance. Based on your preferences, funerary choices, and general financial situation, you can choose from different funeral payment plans offered by funeral homes today.

The cost of prepaying for your funeral can vary widely, depending on your region, the type of funeral home you approach, and the general particulars of the prepaid funeral you are planning. Broadly, the costs could range from as low as $2,000 to as high as even $25,000. The good news is that you generally need not pay the entire price upfront. Instead, you can make arrangements with the funeral home of your choice to pay the total cost in convenient installments over a specified period. 

The Advantages Of Funeral Prepayment Plans

Funeral pre-planning via prepaid funeral plans comes with many upsides. Check out the top advantages of funeral payment plans made in advance below. 

  • Peace of mind

You get peace of mind knowing that you have covered your funeral expenses with your prepaid plan. This means your loved ones need not worry about it. 

  • Greater control over your funeral

You can also exercise greater control over the entire process and arrange your funeral the way you want. 

  • Funeral cost savings

By prepaying for your funeral, you can lock in today’s rates and escape the burden of rising prices due to inflation. 

  • Honoring your final wishes 

You can also ensure that your final wishes are all honored. Your funeral will include your choice of cemetery, funeral home, funeral service, and the like. 

The Downsides Of Funeral Prepayment Plans

Although the advantages far outweigh the disadvantages, choosing prepaid funeral plans may also have some downsides. Here are some things you should know about the flip side.

  • Funeral home bankruptcy

If the funeral home goes out of business, the money you paid towards pre-planning your funeral may be lost forever. This means your loved ones will have to be responsible for planning and paying for your funeral. 

  • Non-transferable prepaid plans

If you have an agreement with a particular funeral home, but your place of demise is elsewhere, transferring the prepaid plan to a funeral home in that location may not be possible. 

  • Non-refundable plans

Lastly, suppose you change your decisions about the prepaid funeral or choose to pay for your funeral differently. In that case, you may not be eligible for a refund of the costs already paid to the funeral home. 

Tips For Choosing A Reputable Funeral Home 

Most funeral homes honor their agreements and ensure that the funds received as a part of funeral payment plans are utilized as per the buyer’s directions. However, you can never be too careful. So, here are some tips for choosing a reputable funeral home and ensuring that your funeral pre-planning exercise is fruitful. 

  • Compare your options and check out different funeral homes in your area.
  • Talk to the local people and know which funeral homes are trustworthy.
  • Get to know the staff and the funeral directors in the funeral home.
  • Get any doubts you have clarified in advance.
  • Read the terms and conditions of your agreement thoroughly before signing the dotted line. 

Prepaying For Your Funeral With Insurance

Another type of funeral payment that you can make in advance involves purchasing a funeral insurance cover. Instead of making the advance payment to a funeral home, you pay premiums to the funeral insurance service provider. You can list a family member as the nominee in your funeral cover, so they will receive the payouts upon your demise. The payouts can then be used to cover the different funerary costs and expenses involved in hosting the ceremony and completing the cremation or burial formalities. 

Planning For A Funeral In Advance

The importance of funeral pre-planning lies in the fact that by taking care of your funeral costs and making the big decisions, you make things easier for your loved ones. Furthermore, funeral prepayment plans may also help you save more by protecting you from the effects of inflation. So, if you have the budget for it today, it may be a good idea to consider funeral pre-planning as an option. 

You can start by taking care of the major expenses, like purchasing a burial plot and pre-ordering a casket from Titan Casket. To conveniently pre-plan a casket, visit our website today and check out the various casket options available online.