With a funeral costing $5,000 or more on average as of 2009, many people are opting for prepaid funerals to help relieve the financial burden on loved ones. Funeral costs can vary depending on the funeral home, type of casket, flower arrangements, transportation and burial costs. Investing in a pre-paid plan can help make sure that you get the exact funeral service you want, and the security of knowing that all costs will be covered and your heirs won't have to pay for anything.
Step 1
Contact your local funeral home. You can arrange a prepaid plan through the funeral home's funeral director. Be sure to research the different funeral homes in the area, because, depending on the plan, you may be stuck with that funeral home once you sign a contract.
Step 2
Decide between revocable and irrevocable. Prepaid funeral plans come in two types. Revocable plans allows you to cancel the contract with the funeral home at any time, and get most of your money back (minus any pre-stated fees). Irrevocable prepaid plans do not allow you to cancel your contract, but in some cases you may be able to still transfer the contract to another funeral home under the set circumstances of your contract.
Step 3
Decide what you want paid for. Prepaid funerals allow you to choose specific options for your funeral as far as casket or other burial desires. The funeral home is required to provide you with a complete list of funeral options (flowers, transportation, cremation, embalming, etc.) with the current prices for each. Once you purchase your options, the director will place a list of purchased options in the contract. If for some reason the features you have selected are no longer available, the funeral home is required to still provide an alternate similar option of the same or greater value.
Step 4
Understand where the money goes. When you buy a prepaid funeral, your money is placed in an escrow account until the time it is needed for your burial. The funeral home must supply you with the name of the escrow agent involved, as well as update you on the amount of money that is credited into your account each year. Make sure you relay this information to the child you have designated to take care of your funeral arrangements.
Step 5
Distribute copies of the contract. Once you are happy with the options in the contract provided to you, and the contract has been signed and dated, send a copy to the child that will likely be responsible for taking care of your funeral arrangements. Also send copies to other important people who will be involved in the funeral proceedings after your death. This includes (but is not limited to) lawyers, doctors, relatives, nursing homes and friends.
Tips and Warnings
- If you suspect that a funeral home has taken advantage of you during the prepaid contract proceedings, contact the Consumer Law Project for Elders at (800) 296-1467.
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