Prepaid Funerals around the Globe

Prepaid funerals aren’t just experiencing popularity in the consumer-driven United States; they are experiencing popularity around the world. As nations become wealthier and the cost of living increases, many cultures and countries are realizing the benefits of a prepaid funeral agreement. All around the world, families gather to pay their last respects and to celebrate the life of a loved on, and without the pressures of planning and paying for a funeral, families are free to mourn and celebrate as they see fit. The rules governing prepaid funeral agreements are generally the same around the world, as it is a fairly new endeavor.

Australia

As a testament to their understanding of the need for prepaid funerals, as well as the likelihood that predators would prey on the mourning family members, the Australian government passed the Prepaid Funeral Act of 2004. This act requires that the funeral home provide the contributor and recipient with copies of all important documents, including the full details of the funeral and the exact costs of the services to be provided. Prepaid funeral agreements in Australia allow you to choose to pay in one lump sum, or to set up a payment plan to ease the financial burden.

The average cost for a funeral in Australia is already up to $7,000, but Australian authorities are cracking down on unscrupulous funeral home directors. Unlike in the United States, Australian authorities are seeking mandatory certification by all funeral homes so that they can all be held accountable for ethics violations.

United States

The average price for a funeral in the United States is $6,000, making prepaid funerals a necessity rather than a helpful alternative. With the ever-expanding lower class, the need for affordable funerals has caused a dramatic spike in the number of individuals signing on for prepaid funeral agreements. Unlike in many other parts of the world, the funeral business in the United States is not regulated by the federal government. Instead, regulations vary by state, leaving an unscrupulous funeral director to set up shop in states with the most lenient prepaid funeral guidelines.

United Kingdom

The United Kingdom has probably made the most progress in terms of setting up safeguards to protect consumers from fraudulent funeral directors. Since 1993, the National Association of Funeral Directors has established the National Association for Pre-paid Funeral Plans to ensure that each customer receives exactly the funeral they planned and paid for. In the UK, the average funeral costs around £1,650 (GBP), or about $3,200 American dollars. With an overall cheaper cost of funerals and greater protections against fraud, the United Kingdom is the safest place to secure a prepaid funeral with minimum fear of fraud.

The most important thing for you to remember as you decide on a prepaid funeral agreement is what you want. At the end of the day, what matters most is that you get the funeral you want, at a price you can afford. Just because funerals are depressing and it’s something we don’t want to talk about unless absolutely necessary, doesn’t make them any less of a business. This simply means that if you don’t know what you want before you get there, you’ll end up with something you don’t want, or cannot afford. Know what you want before you visit the funeral home director and you can avoid some common mistakes.

How do you want to be buried? This is the first question you should ask yourself before you decide whether to secure a prepaid funeral agreement. It’s a logical question and one you should know the answer to before you’re duped into paying a lot of money for unnecessary items. You can decide to be buried in the ground, entombed in a mausoleum, or cremated. Each option has it own set of advantages and disadvantages, but the decision ultimately comes down to what option makes you most comfortable. In the event you cannot decide, always err on the side of the cheaper choice.

Where do you want your final resting place to be? If there’s a family plot to use when the time comes, you should make note of this to avoid paying for a burial plot supplied by the funeral home. This is a perfect example of why it’s so important to know what you want; a family burial plot can save you a few thousand dollars if you reveal it before you sign the agreement. Even if you have no family plot to be buried in, you may have a preferred location for your final resting place that differs from the location that will be used by the funeral home.

What kind of service do you want? As difficult as it is to believe, not everyone wants the same type of funeral. Some may want a religious send-off lead by their religious leader, whereas others may want a non-traditional funeral. Many people are now choosing to have a “celebration of life”, rather than a funeral spent mourning a loss. These may seem like insignificant choices right now, but if you don’t vocalize your desires, you’ll end up with the same basic funeral if you had never planned at all.

As depressing as it is to plan for your own death, doing so now will save you and your family the difficult task of giving you a funeral true to your spirit and the headache of paying for it. Prepaid funeral agreements allow you to choose exactly how you want to bid your final farewell to this earth, all that’s required is that you have an idea about what you want. Going blind into planning a prepaid funeral almost guarantees that you’ll end up paying more than you want for a funeral service that you don’t really want.

You keep hearing about how expensive the typical funeral is, but you don’t know what the ‘typical’ funeral entails. In terms of prepaid funeral agreements, very rarely is it a predetermine plan like a fast food menu. Instead, prepaid funerals allow you to choose exactly what you want, with each item priced individually so you can plan exactly the funeral you want. Funeral homes that do offer specific funeral packages are generally more expensive, and more likely to include certain necessities at an ‘additional cost’. Avoid this trap by knowing exactly what you want before you start talking to funeral industry professionals.

The Basics

When it comes to planning for your funeral, you should first think about what basics you will need and want. Although this isn’t the most inspiring event to plan, doing so now will save you money and frustration. The most obvious basic items you’ll require are a casket, flower arrangement, hearse, headstone, death notice, embalming, mortician services, and a burial plot. These are the most commonly needed items in a funeral, so you should first determine how much you’re willing to spend on the basics before you get lured in to the luxury items. In addition to these items, there is typically a fee paid to the funeral director, which varies by funeral home.

As you make decisions on the funeral basics, consider what you can provide such as a funeral outfit. Some funeral homes include your wardrobe in the prepaid plan, so if you have something you want to be buried in, you should know that before you pay them to do it. You may also want to speak with your religious counsel in advance, in terms of where you want your body to be viewed as well as whose words you want to usher you to the afterlife.

Add-On Items

After speaking with the funeral director, you may decide that you want to add a few luxury items to your tab. Burial vaults and grave liners are common extras added to a funeral bill, but they are not necessarily a must-have. Vaults and liners are intended to prevent the ground around the casket from caving in once it has settled. A burial vault is quite large, as it covers the entire casket to protect it from the settling earth. The grave liner on the other hand, is smaller and less expensive, but both only protect the casket –not the remains.

Additional expenses like vaults and liners are nothing more than luxury items for individuals with money to spend. Vaults and liners can only protect the casket for so long; eventually it will decay even with the vault or liner. A common alternative to burial is entombment in a mausoleum. Using this method, you will not be buried in the ground, but rather entombed in a casket sealed with marble or granite. Depending on whether it is a single crypt or a community mausoleum, the prices will vary. Keep in mind that add-on items will increase your bill dramatically above the average when deciding.

Securing a prepaid funeral agreement is a smart move because the cost of the average funeral promises to keep increasing over time. Currently, the average cost of a funeral is around $6,000, and that only covers traditional funeral items like caskets, embalming, hearse, and cosmetic improvements on the body. As the cost of living soars, so too will the cost of these items, which will increase the cost of your funeral each year. Whether you’re low-income, middle class, or well-to-to, prepaid funeral services can lower your out of pocket costs now, for a funeral to be held later.

If your budget is limited and coming up with $6,000 isn’t within your capabilities, a prepaid funeral may not be for you. As you research your various payment options, you will find that the only real “payment plan” available is the trust account. This means that if your budget doesn’t allow a one-time expenditure of $6,000, you won’t be able to take advantage of a prepaid funeral. Some funeral homes may be willing to work with you in coming up with a payment plan you can afford, but make sure they provide all the goods and services that are available as if you were to pay the amount in full.

For low income individuals that will need long-term care or require assistance from the government, a prepaid funeral is a great way to meet the requirements of Medicaid eligibility. However, this point is somewhat moot because individuals needing government assistance to provide healthcare, are unlikely to have large amounts of cash available. While prepaid funeral agreements do offer many benefits, they are mostly unavailable to individuals likely to need them most. Prepaid funerals offer a great opportunity to plan your funeral and pay for it now, but it’s simply another burden to bear if you cannot afford even today’s prices.

Before you forget about prepaid funerals altogether, visit a few local funeral homes and get an idea of the price range. The simple fact that the average funeral is around $6,000 isn’t an indicator of the price of a funeral in your area. Many people plan lavish funerals as a way to show their significance in life, but if you plan frugally you will find that you can have a beautiful service for a fraction of the national average. When money is a bigger concern than what type of fabric lines your casket, err on the side of frugality and you might end up with a prepaid funeral just inside your budget.

As much as you want to alleviate the financial burden placed on your family, you must accept that there may be additional costs not covered by your agreement. Whether this happens inadvertently, or at the hands of an unscrupulous funeral director, you must accept it as an inevitability and prepare your family for it. Although it is ideal to limit the family contributions, it’s not always possible and they will understand. If you’re on a budget, do what you can to alleviate the burden and talk to your family about alternative ways to make up the difference.

Prepaid funeral agreements come with plenty of advantages: you get to plan every detail, ensuring you get the funeral you want, your family isn’t stuck paying the bill, and you can pay today at a significantly lower cost. Unfortunately, like all things, they also come with a few disadvantages as well. Finding a prepaid funeral agreement that minimizes the disadvantages while allowing you to exploit the advantages is difficult, but not impossible. By being well prepared and forcing the funeral director to be honest, you can make sure you aren’t stuck with all the disadvantages and only a few benefits.

Don’t Always Get What You Want

Many people opt for a prepaid funeral because they don’t want to leave their family with the costs of a funeral while they mourn. If this is your main rationale for a prepaid funeral, you owe it to yourself and your family to make sure you get exactly what you paid for. As you make your selections, the director should be making note of all your choices so they can be executed during your final goodbye. You have a right to a copy of your selections, and you should request it before you make a payment. Furthermore, you should include an eldest child or younger relative in your plans so they can make sure the funeral home holds up their end of the agreement.

Trust Accounts

Trust accounts are interest-accruing accounts set up by the funeral home, to hold your money until it’s time for the funeral. These accounts, while intended to keep your money safe in the interim, are controlled solely by the funeral home. Trust accounts gain interest to cover the costs of the services you requested, in the future when the prices are likely to be higher. However, the interest gained can far surpass the total cost of the funeral and that money usually stays with the funeral home. Before you sign an agreement, find out what will happen to any leftover money, and request that it go to family or charity. As an additional check, call the bank to make sure a trust has been set up for you.

Additional Costs

Funerals are expensive, and the biggest advantage to prepaid funerals is that it relieves your family of the financial burden. However, some prepaid plans don’t cover everything because there are certain items over which the funeral home does not have control. For example, the cost of flower arrangements may increase at a faster rate than the interest accrues in your account. The same can be true of public death notices, and if the money in your trust doesn’t cover these items, your family will have to or your funeral will be without these necessities.

To prevent this from happening, make sure you request an itemized list of all goods and services purchased through your prepaid agreement. You should make sure that a copy of this agreement is available for your surviving family members so they can make sure you get exactly the funeral for which you paid. In addition to making the paperwork available, you should also talk to your family about your plans and wishes since they will have to enforce them in your absence.

Money, Money, Money

Perhaps the largest drawback of prepaid funeral agreements is that they tie up a significant amount of money for the rest of your life. In an uncertain economy, this can pose a large problem for lower and middle class individuals. Despite the disadvantages to having that money tied up forever, it’s the best possible solution. If you’re struggling right now, as an able-bodied individual, it is likely that you will only have more financial hardship with old age. Tying up a large sum of money right now may seem financially idiotic, but you can rest assured that during your final days, you won’t have to deal with the burdensome task of planning your funeral.

Prepaid funerals are becoming more popular with every passing year. More and more people are looking for ways to relieve family members of the burden of planning and paying for a funeral while they mourn the loss of a loved one. In addition, the increase in prepaid funeral agreements can be attributed to the need to have just the funeral you want. In today’s society, it’s not uncommon for family members to have different religious beliefs, and therefore different standards for final goodbyes. All of these factors combined make prepaid funeral agreements a necessity for the morphing face of the nuclear family.

Now that you know many of the advantages of planning a prepaid funeral, it’s time to find out what your options are in terms of a prepaid funeral. Depending on your age and mobility, one of the factors you will need to consider is the flexibility of your agreement. Many prepaid funeral plans don’t allow you the flexibility of transferring your plan to another state, region, or even to another country. If you move out of state without consulting the director of the funeral home in which you made your agreement, you may find that your agreement does not transfer. This gives you two options: lose the money you’ve already paid or keep the plan and have your family pay the cost of transporting you back to the funeral home upon your death.

Just as inevitable as death, is that you will change your mind. Perhaps when you first decided on a prepaid funeral, your financial situation was bleaker than it is now…what should you do? Before you pay anything, you should ask what options are available to you if you decide to opt out of a prepaid funeral. Most reputable funeral homes allow easy opt-out of your agreement, usually refunding most of the money minus some administrative costs. However, the rules vary by state, so you should have a clear understanding of the flexibility of your funeral agreement before its finalized.

One of the major perks of prepaid funerals is that they allow you to pay a lower cost (in theory) for what is likely to be a more expensive funeral. For this reason, you should make sure that you’re still paying a reasonable price for the service. Many fraudulent prepaid agreements jack up the prices to net a larger return at the end, and provide a substandard funeral service. If you suspect that you’re being quoted a higher price, ask for everything in writing. By law you have to be given the prices of everything you request, either over the telephone or in person, this is called the Funeral Rule. By requesting the prices up front, you can decide based on taste as well as affordability, rather than the sales pitch of the funeral director.

The prices quoted to you should reflect current prices, and not be increased for inflation. Paying higher rates now for a funeral to take place in the future would be a contrast to everything good about prepaid funerals. The idea of prepaid funerals is to allow you to pay for and plan your funeral now (at today’s prices); inflated prices would run counter to that. In addition, high prices would eliminate the necessity of a trust, as the price is already high without additional interest. Flexibility and affordability are as important to funeral planning as the casket, so be certain that your plan has both before committing.

If you’re thinking about securing a prepaid funeral contract, there are many factors you should consider before making a final decision. When you make other large purchases like vehicles and homes, you check to make sure you fit any guidelines required of a buyer, so why not do the same for a prepaid funeral? Although it is rare and may differ by state or country, some prepaid funeral agreements have limits on who can enter into these agreements and what is covered under them. It’s important that you look into this matter before sign any funeral agreement or lock a large chunk of your savings into an account controlled by the funeral home.

You’re probably wondering if there are eligibility requirements for prepaid funeral services, and the easy answer is no. Unlike health insurance or prescription drug coverage, prepaid funeral contracts won’t exclude you for having bad health, being of an older age, or having pre-existing conditions. Your health, or lack of, is not a factor in determining your eligibility for a prepaid funeral since your current health is of no consequence to a funeral home. All that matters is your ability to pay for the services you want before you need it.

While there are no specific health or age requirements for entering into a prepaid funeral agreement, your income, and the source of your income play a much larger role. Many of our senior citizens survive monthly due to government-sponsored entitlement programs such as Medicaid and SSI. Because there are many requirements regarding how these funds are to be used, you must make certain that you’re allowed to use those funds to secure a prepaid funeral agreement. One thing you must be aware of is that Medicaid only permits irrevocable pre-need funeral agreements, that is they only allow you to secure an agreement in which any refund available to you, goes directly to the state. This is to prevent family members from choosing cheaper services than you requested, and reaping the financial benefits of the refund.

Because death is inevitable for all of us and because there’s a huge financial incentive for the funeral home, health and age eligibility requirements are virtually nonexistent. If a funeral home representative at any time requests proof of health insurance, age, or proof of overall good health, consult an attorney as well as the Better Business Bureau. The only time you should worry about your eligibility for a prepaid funeral agreement is if your main source of income is in the form of government assistance. In many cases, arranging a prepaid funeral can affect your eligibility for Medicaid programs as they count as resources, but this is an unlikely occurrence. More likely however is that your participation in a prepaid funeral agreement will disqualify you from receiving benefits like Medicaid.

The number one concern of people seeking prepaid funerals is, is my money safe? Before you automatically dismiss prepaid funerals as a fraud, you should listen to all the facts. In the United States, more than half of all funerals are prepaid. With rising living costs, purchasing your funeral package in advance allows you to save money on your final goodbye without leaving a financial burden for your family. The money you pay for a prepaid funeral will cover the costs of a traditional funeral, or whatever package you choose. Since this funeral agreement is legally binding in most places, you can be certain that your money will be available when you need it.

The average cost of a funeral in the United States is around $6,000.00, but that figure can reach as much as $10,000 depending on where you live and what kind of funeral you want. With such a staggering dollar amount, you’ll want to make certain that your money will be safe and available when the time comes. The way most funeral homes will handle your prepaid funeral is to put your money in a trust that accrues interest. Upon first sight, this may seem unfair, but actually, it’s why you’re able to secure your funeral service at today’s prices. By putting your money into an account that earns interest, the funeral home is ensuring that the proper amount of funds will be available to give you the final goodbye you want.

Because of the soaring cost of funerals around the globe, many individuals are putting money aside for a prepaid funeral. Nevertheless, before you sign on the dotted line and part with a large sum of money make sure you’re getting your money’s worth. There have been some cases documented in which funeral homes take the money and provide the customer with the lowest quality funeral imaginable. This is unlikely to happen if you take your time and do the research before committing yourself to anything. Prepaid funerals allow you to leave your family with nothing more than fond memories and family keepsakes, but you shouldn’t let that be your sole criteria for choosing this option.

The downside to prepaid funerals is that the account in which your funeral funds are located is controlled by the funeral home. While this doesn’t personally affect you, it means that your account could accrue enough interest to surpass the cost of your funeral, giving the funeral home a healthy bonus. Before you make any commitments in terms of your final wishes, find out what your options are regarding any additional funds. In many cases, the remaining money can be left to a surviving relative or charity, but if you don’t inquire, you can be certain that money will go in someone else’s pocket.

The money you pay in a prepaid funeral agreement is safe. However, just to be sure that your final goodbye is just as you planned, involve a family member in your arrangements. By doing this you can be certain that if for any reason, you don’t get the funeral you paid for, someone will be held accountable. The advantages of prepaid funerals far outweigh the few disadvantages of unscrupulous funeral home directors. The best way to make sure your money is safe, is to ask plenty of questions and get everything in writing.

In this ever-changing economy, it’s important that we all can afford the essentials: food, shelter, clothing, and funeral costs. Sure, planning a funeral isn’t something we think about on a daily basis but it is inevitable and it is an unavoidable expense. As the price of basic necessities soar, so too will the cost of saying your final goodbye to this earth. For this reason, many people are looking to prepaid funerals. A prepaid funeral will give you the authority to make decisions regarding your funeral right now, and the option of paying for it at today’s cost.

What are prepaid funerals?

A prepaid funeral is a legally binding contract, which states that you will pay now for the costs of your funeral to be held in the future. Before you sign anything, you will choose the way in which your family says goodbye. Prepaid funeral contracts may include some or all of the following; burial, cremation, casket, transportation, and other services associated with funerals. Before you sign a prepaid funeral agreement, you should make sure you’re getting everything you want and need. Once the decisions have been finalized, clue your family in so they can make sure your wishes are carried out when the time comes.

Where does the money go?

When you secure a prepaid funeral, the money you pay goes into a trust account that accrues interest. The reason this money is put into an interest gaining account is to make sure all the goods and services agreed to are covered by the amount you paid. Generally, enough interest is gained on the account to cover your funeral requests, and often the funeral home gets to keep the balance. Find out in advance, if your family members have a right to that money after the services.

Do prepaid funerals cover all necessities?

Put simply, no. It is up to you to make sure everything you want is covered under your agreement. It’s best to know what you want before the ‘big sale’, or else you may end up with an expensive funeral that’s not at all what you wanted. Most prepaid contracts allow you to choose what you want, so it’s up to you to make sure it’s all set up.

Avoid making a deal with disreputable funeral directors by checking with the Better Business Bureau (BBB), or the National Funeral Director’s Association (NFDA). The NFDA has members all over the world, meaning that you can make sure you find a reputable funeral director to help you set up a prepaid agreement that matches your needs and your pocketbook. With just a little bit of research and planning, you can find a funeral director to help you save money on your final goodbye.

When the time arrives for your loved ones to make important decisions, they shouldn’t have to spend valuable time trying to figure out your last wishes. In addition, you don’t want your family to bear the financial burden of an untimely passing. Both of these problems can be solved by a prepaid funeral. Prepaid funerals provide you with a way to make arrangements now, for your future. Thinking about your death isn’t something that anyone wants to do, but a little of bit of planning now can save your loved ones the headache of dealing with unscrupulous funeral home directors while grieving.

The ever-increasing costs of funerals make it likely that if you don’t plan now, your family will pay exorbitant fees when they should be celebrating your life. There are many benefits to prepaid funerals, including affordable prices now for a ceremony to be conducted years in the future. Perhaps the most advantageous part about securing a prepaid funeral is that you get to pay current prices and get the funeral you want. Your family members shouldn’t be left to guess what type of service you want, or more importantly how you want to spend eternity.

There are many decisions to consider before you secure a prepaid funeral contract; among them is your choice of where you want to be buried. In fact, before you visit your first funeral home, you should prepare a list of questions and concerns you have. It’s better to be too prepared now, than not have all the information and an incomplete funeral. Prepaid funeral contracts are binding, so it’s crucial that it covers everything you’ll need when the inevitable occurs. The best thing you can do for yourself is to research everything that goes into planning a funeral before signing a contract. That research will give you all the information you need to make sure all the bases are covered.

The biggest advantage of a prepaid funeral is that you get a reasonably priced service now, for an undetermined date in the future. To make sure you take advantage of those savings, you’ll have to make sure you know the individual price of everything before you sign a contract agreeing to pay a large sum of money. Purchasing a prepaid funeral contract is a big step, and quite a large investment to make without having all the facts laid out for you. Limit these missteps by asking some of the following questions:

• Are there limits on pre-existing medical conditions?
• Does the contract include a burial plot?
• Can you choose cremation or burial?
• Is body transportation covered?
• Can your contract transfer to a different region, state, or country?
• How safe is your money?

Asking these questions now will eliminate any financial obligation from your loved ones, while ensuring that you get exactly the service you want. Arranging for the inevitable doesn’t have to be difficult, and prepaid funerals offers you a way to make these final decisions on your own without leaving an undue burden on your family.