It is said, ” to be born, is luck but to die is a must.” Since death is a must, many people go ahead and make plans for their burial while they’re alive. In prepaid funeral plans, you are supposed to prepay for your funeral. That is, raising the money that will be used in your burial. Some of the items covered in this plan include; method to be used (burial or cremation), transportation services, graveside, etc.
However, this prepaid funeral plan has its cons and pros.
Pros of Prepaid Funeral Plans
1. Planning your funeral – one of the advantages of a prepaid funeral plan is that you can plan out the details of your send-off. The plan allows you to choose the method of send-off you’d like.
2. Relieve your loved ones from financial stress- Death occurs unexpectedly. It may visit one family when they are financially low. This can lead to stress and overthinking to family members. To avoid all these forms of stress, one can plan for his or her burial while alive.
3. The cost does not change- the prepaid funeral cost stays the same. That is, it does not depreciate even if you take many years to die. Therefore your money is secure.
4. Different payments methods- funeral plans have different payment methods that can be used. You can pay for your funeral plan with an installments plan or cash. With installments, you are allowed to pay the cost that is comfortable for your budget. While using the total cash method, you are required to pay all the amounts at once. Therefore, it is upon you to choose the paying method that suits you best.
5. No health checks- Unlike life insurance that requires extensive health checks, prepaid plans don’t require any health checks. This plan is available for anyone despite their age or health conditions. Also, a prepaid funeral plan doesn’t come with an age limit. Therefore, it is a cheaper and more reliable funeral plan.
6. Raising Funeral costs is avoided- as discussed earlier, the prepaid funeral plan helps to relieve your loved ones from financial stress. When you die, your family members will not struggle as they try to raise the cost for your burial. Having prepaid funeral plans will ensure you are guaranteed the funeral services you want. Therefore, it is an important move to have prepaid funeral plans.
7. Better quality services- having prepaid services enable you to choose better quality services for your send-off. Many funeral homes and services take advantage of the mourning families. Therefore, planning your funeral services while you’re still alive, will save you from such exploitations. You’ll research funeral homes in-depth and come to a conclusion which is the best.
8. Minimizes family disagreements- It’s a common thing for many family members to disagree on different things for a loved one who has passed. Even if you had shared your funeral plans with your family member, they will still have a hard time remembering what you told them. However, by prepaying for your funeral, you can avoid such disagreements.
10. Your funeral wishes are known- Prepaid funeral plans guarantee that your wishes are honored. The prepaid funeral plan captures all your funeral details. Therefore, your family members will have an easy time implementing your wishes.
11. Family members can focus on comfort and healing- days that come after your death are naturally a hard time for your loved ones. However, a prepaid funeral plan can be a gift to your loved ones as it may play a vital role in alleviating pain and stress. The plans enable you to organize your burial while alive.
Cons of Prepaid Funeral Plans
1. Risk of loss- prepaid funeral plans are offered by businesses or any other insurance body. Just like other businesses, the organization offering the funeral plan may run bankrupt. In case of such a scenario, the chance is high you’ll lose your money.
The funeral plan is not for everyone- the funeral plan is only limited to those who have money to plan for their burial while alive. The funeral plans are costly and not all people can afford the prices. Therefore, the option is only limited to the few who have money.
3. The funeral plan cannot cover all your burial expenses- most of these funeral plans cover very few funeral-related activities. Therefore, you have to understand what is and isn’t covered before paying the plan.
4. Block your savings- The prepaid funeral plan is recommendable for people who are in a comfortable financial situation. The plan block your savings as you can get the money back. If you’re not ready to block your savings, you better go for other funeral planning methods.
5. Breach of contract- Depending on the plan you choose, a prepaid funeral plan can be good or bad. Therefore, you have to research the funeral plan agency in-depth. In case you’re using installments to pay for the plan, you should check what would happen if the installments are not completed.
6. Some plans are locked into specific areas- Most of the funeral plans are limited to the area specified in the contract. In case you change your location or move to another new area, the prepaid plan contact may be terminated. So, if you’re not sure of your future residing area, you should stay away from this kind of plan.
7. Do not allow transfers- Most of these Prepaid funeral plans do not allow transfers. That is, they do allow one to change specific requests Also, this plan may not allow you to make additional arrangements to the plan. Similarly, you cannot transfer your account to your loved ones. Therefore, it is advisable to make good decisions before signing a Prepaid funeral plan.
8. The contact may cost your beneficiaries- Some payment issues and costs may arise when your account doesn’t meet maturity. This can be the case when you die before the payment installments are completed. Thus, you need to discuss the contact so that it will not affect your beneficiaries.