Estate planning does many things – but it’s primarily a way to make things easier for your loved ones after you’re gone and make sure that your final wishes are respected.
With that in mind, many seniors are looking harder than ever into prepaid funeral plans. These plans allow people to pay for their funeral and cremation or burial in advance so that they take that burden off their relatives.
Before you buy, look at both the pros and cons
Prepaid funeral plans are not right for everybody. Before you put any of your money into one of the many plans that are offered, consider both the pros and cons. The benefits of a prepaid plan include:
- Easier financial planning: If you’re concerned that your loved ones will struggle to pay for your services for one reason or another, this can alleviate your concerns.
- Locked-in prices: By prepaying for your funeral service, you build a hedge against inflation and future price increases. This can save your loved ones hundreds or thousands.
- Personalization: There’s nothing wrong with making sure that you get what you want. Preplanning a funeral spares your grieving family from difficult decisions and lets you specify your preferences regarding a casket, the type of service and burial versus cremation, among other things.
However, the drawbacks of a prepaid plan are significant. They include:
- Inflexibility: Prepaid funeral plans can be wasted money if your circumstances or wishes change. The funds are usually not refundable and they may not be transferable from one provider to another. That could be inconvenient if you eventually decide to relocate to a new area during your retirement or if your feelings about your plans change.
- Possible loss of funds: Some funeral homes have been around for generations – but the funeral industry can be hard. If the funeral home goes out of business, your funds can be lost.
Prepaid funeral plans are not your only option. With the experienced estate planning assistance, you can explore alternatives that may suit your needs even better.