PREPAID FUNERALS AND FUNERAL INSURANCE

Prepaid Funerals

There are many people making a living by trying to sell you a prepaid funeral. They market it as a way to "not be a burden on your loved ones." Here is what generally happens:

The salesperson asks a few questions about the funeral service for which you would like to prepay. (e.g. Which casket would you like? Do you want the use of a limo?) He or she will then figure out how much that funeral would cost if it were today. You then invest that amount of money through them and when you die, they guarantee that account will pay for the funeral you ordered. (There are many variations on this scenario, but this one is representative.)

It sounds good, even caring. Should you do it? I believe, no, and here is why.

1) If you take that same amount of money and put it in a bank your survivors will have plenty to pay for your service and, chances are, have enough left over to make a donation to your favorite charity,

2) If you leave your wishes about your funeral service with your pastor, you can be assured that you will receive the service you want, and,

3) Prepaid funeral salespeople are commissioned. Their primary concern is to get your money, and the more the better. More often than not, the paperwork is incomplete or poorly done and your survivors are forced to remake all the decisions that you pre-made.

If you would like to pre-pay for your funeral, it would be better for you, in my opinion, to take $5,000.00 and put it in a timed savings account in your and your executor's name, and give the pass book to your executor. Tell him/her that your pastor knows what you want in a funeral service and to give any monies that are left over to your favorite charity.
Funeral Insurance