Planning their own funeral makes most people feel a little uneasy, but preparing for the inevitable is a wise way to make your wishes known and relieve your loved ones of financial responsibility. According to the ARRP, more than 7 million funerals had been pre-arranged in the United States through 1994.

The National Funeral Directors Association notes that pre-arranging a funeral does not require prepayment although prepaying is often an advantage.

The primary reason many consumer choose pre-arrangement is the peace of mind that comes from knowing that a spouse, child or other family member will not be left with the emotional burden of making difficult decisions when they are bereaved.

Spouses and children have an easier time when the funeral has been pre-arranged. Their pain is the same, but because they are not having to make difficult decisions, the are able to focus on each others' needs and feelings. According to the National Research Information Center, a non-profit organization based in Des Plaines, Illinois, if you are going to make an informed choice when pre-arranging your funeral, you need to know: The type funeral you want, what you can afford, if guarantees are provided on merchandise and services, what happens if you move and want to change funeral homes, the tax consequence of the funding arrangements, if any, and if you are protected against inflation.

Many choose the pre-arrangement option because it allows them to comparison shop to find a funeral home that can provide the price and style that meets their needs. Generally funeral plans consist of a two step process: Making the funeral arrangements with a pre-need contract, and funding the cost of the pre-arranged funeral through life insurance, a bank trust agreement or other methods.

It is possible to select funeral goods and services without pre-funding the funeral or to pre-fund a funeral without selecting specific goods and services, but if you do either of these, the price of the funeral is often not guaranteed.

The contract should identify the person selling the contract, the person purchasing the contract and the person for whom the contract is purchased. The contract should contain a complete description of the merchandise and services purchased. The funeral home is required by law to give you a General Price List that contains the current cost of each individual item and service. It must also contain information about embalming, cash advance sales, containers for cremation and any purchases that are required. Cash advance items are goods and services that are paid on your behalf such as cemetery services, flowers, newspaper notices and honoraria for clergy and musicians. Some funeral providers charge you their cost on these items while others add a fee to their cost

 

If a service fee is added, or if the funeral provider receives a discount, refund or rebate for these items, it must be disclosed to you.

If a unique service is request, you should discuss this in detail with the funeral service professional to determine if the service can be provided.

Funeral services usually include: Professional services of a funeral director and staff, transportation, embalming and other preparation, facilities for visitation, the funeral ceremony, other services and associated items such as pastoral services, music, grave opening and closing.

Funeral merchandise selections include: casket, urn, or both; outer burial container, such as cemetery vault; other merchandise and services such as flowers, acknowledgement cards and transfer containers.

The contract should clearly state whether the provision of supplies and services is guaranteed or not guaranteed. A guaranteed funeral means that regardless of the retail prices of the funeral at the times of death, there will be no obligation to pay additional money for the funeral provider. The guarantee may be limited if paid in installments.

The agreement should also state that goods and services of equal value will be substituted at no additional cost if the exact ones are not available at the time of need.

Pre-arrangement may or may not involve pre-funding. Pre-funding a funeral offers you the advantage of paying for your funeral when you can afford it, thus relieving your family of a financial burden later.

Seniors may find the most value in pre-funding because a federal law allows funds to be set aside for funeral related expenses, all or part of which may not be counted as resources when determining eligibility for Supplemental Security Income, Medicaid or other public benefits.

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