Is It a Good Idea To Prepay for Your Own Funeral?
Let’s be honest — planning your own funeral is about as fun as getting a root canal. But an increasing number of smart seniors are opting to get ahead of the inevitable by prepaying for their final farewells. The allure? Sparing loved ones from having to make difficult decisions in their time of grief, not to mention the escalating costs of a traditional burial or cremation service.
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The median cost in 2021 was nearly $7,848, according to the National Funeral Directors Association. In 2023, the cost of dying had risen to $8,300. Suddenly, locking in today’s prices starts to make sense.
Read the Fine Print
But don’t grab your checkbook yet. While prepaying can provide peace of mind, it also comes with some serious strings attached. Horror stories abound of shady funeral homes pocketing the funds and going belly up or refusing to transfer the contract if you relocate. Even above-board operations can bake in high fees that devour a chunk of your prepaid costs.
Ask All the Right Questions
If you do decide to prepay, it’s critical to do your homework. What exactly is covered? Will you get nickel and dimed for every little thing? Where does your money actually go — into a untouchable trust or the funeral home’s general slush fund? And can you even take the contract with you if you split town? Get every detail in writing and scrutinize the fine print.
Safer Alternatives to Ponder
For the commitment-phobes out there, there are other ways to earmark funds for your final send-off without the prepayment. You could open a payable-on-death account at your bank that a loved one can access after you’re gone. Or you could purchase a final expense life insurance policy, which allows you to leave behind a pot of cash with no strings attached.
It’s Your Call to Make
At the end of the day, prepaying for your funeral is a highly personal decision with no right or wrong answer. For the person who appreciates control and locking in costs, it can make total sense. But if potential headaches give you pause, there’s no shame in taking a more flexible approach.
Just don’t leave your loved ones on the hook — or stuck making agonizing choices. Have those conversations now about your wishes and figure out the financial part accordingly. With a little planning, you can make your great exit as easy as possible for those you’ll leave behind.
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This article originally appeared on GOBankingRates.com: Is It a Good Idea To Prepay for Your Own Funeral?
