Complete Guide to Prepaid Funerals: Plans, Costs, Pros and Cons

November 22, 2021 11:59 pm Published by Leave your thoughts

Making funeral arrangements for a loved one can be extremely challenging, emotionally and financially. That’s why more and more people are preplanning their own funerals. Taking this step saves family members the stress of planning a funeral in the future. The funeral planner simply executes all the predetermined wishes of the deceased and uses the funds that have been set aside to pay for the expenses.

Is this option right for you? Use the following guide to determine if you might want to contact a funeral planner to make arrangements for a prepaid funeral.

What does a prepaid funeral plan include?

Your plan will be customized based on your wants, needs and budget. You can include the casket, funeral home services, flowers and anything else you want. You will make a list of everything you want to include in the plan, and the funeral planner will calculate a price for your plan.

If you choose a guaranteed plan, once you have agreed on these arrangements and cost, the price is locked in. That means if the cost of your casket increases by $2,000 between now and your demise, your loved ones will not have to pay the higher cost; however, if the plan is non-guaranteed, they may have to pay the difference.

How much are prepaid funeral plans?

Prepaid funeral plans typically cost between $10,000 and $25,000. This amount can usually be paid in monthly installments to the funeral planner.

Are prepaid funeral plans tax deductible?

In some cases, yes. If an estate pays for the funeral, the estate can deduct the expenses. Consult with a funeral planner and tax professional to set this up in a way that makes the most sense for your deductions and benefits.

How do I prepay for a funeral plan?

You can either work with a funeral planner who contracts with multiple funeral homes or work with the funeral home directly. You will set up a payment plan and begin making payments for your prepaid plan.

What are the pros of a prepaid funeral plan?

  • Peace of mind: Everything will be taken care of in advance, so you can have peace of mind that your loved ones won’t have to navigate these decisions and costs once you are gone.
  • What you want: With all the arrangements made, you can be sure that you get the type of funeral you want and are buried in the plot you choose. It allows you to make your wishes clear, and you can rest assured they will be followed.
  • Reduced cost: If you choose a guaranteed plan, you can lock in today’s prices. This may help reduce the costs of your funeral.

What are the cons of a prepaid funeral plan?

  • Business changes: There is the possibility that the funeral home you choose could go out of business. Be sure to check with the funeral planner to see if there are contingencies for this.
  • Geographical limitations: If you decide to move, your prepaid funeral plan may not be transferable to another location.
  • No cancellations: If you change your mind later about the plan or any details of the arrangements, you may not be able to alter the plan. You may not be able to get a refund for canceling, either.

Learn more

For more information about prepaid funeral plans, contact a funeral planner at ICS Cremation & Funeral Home. Our knowledgeable staff is ready to answer any questions you have and help prearrange funerals, cremations and other final wishes.

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