Getting funeral plans for the unexpected end of life is not always considered, but with funeral expenses continuing to climb and saving opportunities staying low, investing in a funeral plan even in advance is a wise financial move. It is important to prepare ahead of time so that funeral costs can be minimized and other family expenses can be looked into. By having funeral arrangements made well in advance, family members are less stressed when the time comes to pay their last respects. Family members should also not forget to save money for the funeral cost.
There are several funeral plans that families can invest in depending on their needs. Some funeral plans can be very affordable. An example of this could be purchasing a share in a co-op where a family could save money for the burial of their loved one. A family could invest in a co-op with an interest by saving money from paying premiums. A large group can pool funds together to cover expenses like the costs of the funeral service, travel expenses, officiant’s fees, flowers, etc. Investing in a share in a co-op will benefit everyone involved.
Another type of affordable funeral plan is a prepaid funeral plan. A prepaid funeral plan works much like an insurance policy where a family can pay a premium to hold funds for the funeral. Funds accumulated by paying the premium are deposited into an account where money can be withdrawn and used for the payment of bills or the burial. The amount of the deposit can range from as low as $100 to as high as $16,000. This is a great way to control expenses without having to worry about maxing out a bank account.
Investing in a lump sum is another way to afford a funeral. Larger estates, usually those exceeding or touching six figures, may be able to obtain discounts on funeral insurance policies. However, most consumers who are paying cash for service are still required to purchase a funeral policy. Some insurance companies offer cheaper rates and terms by purchasing a policy online as opposed to going through a broker. Purchasing a policy through an agent can still work out to be less expensive.
Individuals should never pay for a funeral or leave funds in the care of a family member or friend. Although the wishes of the surviving family members can be honoured, paying for funeral expenses and keeping the family’s budget under control can be done without charging relatives for the service. If a family is struggling to make ends meet, investing in a funeral plan can help defray funeral costs until income can be made from other sources.
Funeral homes and other funeral facilities offer pre-arranged services that can be very helpful to those in need of a place to bury their loved ones. These same funeral homes and facilities also offer services that allow families to control their financial burdens. For example, co-op funeral plans allow a family to buy a plot at a public or private cemetery for the burial of their relative. A funeral director will often handle these services for a fee as well.