Pre-Need Plan

Often also called a “Pre-Paid Funeral Plan.” this is an agreement that you make directly with a funeral home. With such a Plan, you pay for your funeral ahead of time and also write down your wishes for the services you want.

These plans usually cover things like transportation, the casket or cremation, embalming, and the funeral service itself. The money you pay is often put into an insurance policy or a trust so the funeral home will have the funds when the time comes.

One important benefit is that a prepaid plan usually locks in today’s prices, even though the services will happen years later. This can help protect against rising funeral costs.

Before choosing a prepaid plan, here are some important things to think about:

The funeral home’s reputation

Choose a funeral home that is well-known, trusted, and has good reviews.

Can the plan be transferred?

Ask if the plan can be moved to another funeral home if you move or if the business closes.

Refund rules

Make sure you understand what happens if you change your mind or need to cancel the plan.

Pros (Benefits)

- Gives peace of mind knowing everything is planned ahead of time

- Helps make sure your wishes are followed

- Reduces financial and decision-making stress for your family

- Locks in today’s prices and helps avoid future cost increases

- Many plans offer monthly payment options and protect the money in a trust or insurance policy

Cons (Things to Watch Out For)

- If the funeral home goes out of business, there could be risks if the plan is not set up properly

- Some plans may not cover every cost, so it’s important to know exactly what is included

- Plans may not be refundable or transferable if your situation changes

- Money tied up in a prepaid plan may not be available to your family for emergencies

Taking time to understand all your options can help you choose what’s best for you and your loved ones.