Should You Prepay For Your Funeral? Things To Consider Before Committing

The average cost of a funeral in the United States ranges from $7,000 to $10,000. Could your family comfortably pay this amount when you pass away, especially when the funds will need to be found without much notice? Given the fact that most people would have difficulty accessing this amount of money, funeral pre-plans are a way to avoid the financial burden of a funeral. A small contribution is made each month, allowing for the funeral to be paid for when it's actually needed. Many funeral homes offer such a service, but are there any drawbacks?

Local Funeral Homes

Although many funeral homes offer a funeral pre-plan, there can be some limitations on the service they're able to provide. It could be a problem if the funeral home were to go out of business, for example. The money you've paid to the funeral home could be lost, and while you might have the ability to pursue the matter, you, along with all the other creditors, won't necessarily get your full investment back. If you're considering making funeral pre-arrangements with a local business, ask about their contingency plan in the event that they go out of business.


Another thing to ask a local funeral home is if you are able to transfer your plan. While you might have every intention of staying put, plans can change. If you were to relocate to a different part of the country, a localized funeral plan will be of little use to you. Under these circumstances, are you able to transfer the plan to a new funeral home in your new hometown? Or are you able to get the amount refunded? It's crucial that you enquire about these matters before committing to anything. 

A Nationwide Plan

A simple way to sidestep these complications is to sign up for a funeral pre-plan with a provider that has a number of affiliate funeral homes across the country. Your monthly contributions are safe and are not dependent on the financial performance of an individual funeral home. This also safeguards you in the event that you move to a new part of the country. The actual funeral home that will be utilized when the time comes can be decided at a later stage. 

So while there can be some limitations on the funeral pre-plans offered by local funeral homes, opting for a plan from a nationwide provider gives you the necessary coverage without these limitations.

To learn more about your options, contact a company that offers funeral pre-arrangements in your area.