The prepaid funeral plan helps one to plan beforehand and pay in advance for their funeral arrangements. Prepaid funerals are a loving way to leave less stress and worry behind in the event of a death.
The money can be taken later as an insurance policy, or if held as a trust it can be refunded when needed.
The Association for the Advancement of Retired Persons conducted a survey on the prepaid funeral plan. According to the survey, the popularity of the prepaid funeral plan has increased in the recent years due to the rising costs of funerals and burials. Further, the increase in the number of deaths registered every day has made things more complicated for funeral directors in Melbourne and other cities. It was discovered that 30% of people over the age of 50 have made some prearrangement for their funeral or burial.
A prepaid funeral arrangement contract made directly with a funeral home or through a life insurance policy does not attract any regulation from the government. A bespoke contract that involves a third party will require government regulation.
The benefits of prepaid funeral arrangements include:
• Having all of the specific funeral details planned. The balance if still outstanding.
• Friends and family of the deceased will have the time to grieve without the added stress of arranging the funeral.
• One gets to plan and control everything regarding their funeral as they have paid in advance for everything.
• Protects your family’s savings from having to sell their assets to cater for the arrangements.
• When the time occurs, you are guaranteed the funeral services purchased or an alternative if the original is not specifically available.
• You will not need to pay more in the event of the costs rising due to inflation.
• You have the right to a refund or transfer to another funeral home if you can no longer use the services. (If for example you have moved away from the area).
Paying for your funeral beforehand has its advantages, however it does have some disadvantages.
• If you decide to cancel the plan, you may not be eligible for a refund if the contract includes a trust fund or insurance funding.
• You must carefully read the contract regarding the transfer of the plan. It may not apply to a transfer made to another funeral home outside of your district unless it states otherwise. After transferring the plan, the funding options may also differ.
• The funeral home can claim non-inclusion of some of the services if, at the time of signing the contract, the list of items is not given to you.
• There is a slim chance of getting back your investment if the funeral home mentioned in the contract goes out of business.
• In conclusion, the prepaid funeral plan is a stress-free investment, it is, therefore, a good idea to contact Greenhaven Funerals to see just how they can help you. Most importantly read completely and carefully the contract before signing and agreeing to it.