Lastjourney Blog

10 pros and cons of Prepaid Funeral Plans

Varun

17 January, 2023

Reading Time: 4 minutes

Every family member wants to hire the best funeral service home for bidding adieu to the beloved person. Most funeral direction companies offer Prepaid Funeral Plans according to the services and products that people choose.

But Prepaid Funeral Plans sometimes become risky also as many things remain unclear to the family members who are hiring the funeral services from a company. On the other hand, it is useful in some ways as well because prepaid funeral plans give you the advantage of paying in installments.

Here is the complete analysis of the pros and cons of Prepaid Funeral Plans so that you can make a wise decision regarding prepaid services for the funeral.

Pros of the Prepaid Funeral Plans

There are many compelling reasons to choose a prepaid funeral plan. Some of the major advantageous features of this kind of service are below mentioned.

Makes you free from responsibilities

One of the biggest pros of a Prepaid Funeral Plan is you can pay the amount for services and products before the start of services and take part in the final rites of your beloved family member without any distraction. This advantage of prepaying for the services helps you in peacefully processing the pain.

Make you aware of the expense before the start of services

Prepaid Funeral Plans also shrug off the worries of people related to carrying more or less amount than required during the funeral of the departed person. In this kind of service, you need not think about the situations like whether you are carrying sufficient money or not for the payment.

Another thing is, the increase and decrease in the price of services do not impact the paid amount of your prepaid funeral plan. You can save some amount in case the price of the funeral plan increases.

Funeral Homes also gives offers on prepaid plans

Many funeral homes provide cheaper packages to people who show interest in Prepaid Funeral Plans. The expensive funeral plans also become affordable for the people. The prepaid funeral plans give you a free consultation as well.

Tax saving

Paying after the completion of funeral services can charge you an amount that includes taxes but prepaying can save you from this. Prepaying for Funeral Plans can deduct the tax amounts from the price of funeral services. You can also consult with the authorities of the Funeral home regarding the tax deduction.

Decide the type of funeral that you want to give

Prepaid Funeral Plans allow you to select things and specific services for your beloved family member. You can include things according to your budget or leave some services if the amount crosses your budget limit. You can choose the vehicle for the funeral procession, casket, decoration and place for burial or cremation according to your choice and pay before the start of services.

These pros of Prepaid Funeral Plans play a pivotal role in coercing people to consider this kind of service related to funerals.

Cons of Prepaid Funeral Plans

After seeing the above-written advantages of Prepaid Funeral plans you might feel that there is no drawback in these plans. But you must make yourself aware of the risks and disadvantages of Prepaid funeral plans before making a final decision related to it.

Here is the list of cons that are linked with the Prepaid Funeral Plans of several funeral homes.

No room for shifting the plan before or after the fixed time

In many cases, Funerals happened at a fixed time but there may be a change in the plan. As an example, A close family member can be late in reaching the destination place. Hence family members have to shift it to the next day or a few hours after the fixed time. But this shifting is not possible in the prepaid funeral plans.

Apart from this, there is no flexibility in changing the place of the funeral. You have to complete the ritual at the pre-decided place only. If you find yourself unable in performing the rituals at a fixed time and place, there is the least chance of a complete refund from the Funeral homes whom with you have signed the contract for preplanned funeral services.

Prepaying is not enough sometimes

Prepaid funeral plans include only those charges which are pre-decided like the cost of the casket, vehicle, coffin box etc. But you will pay some additional amount after completing the rituals for third-party services and medical services. It can create a misunderstanding between the consumer and the service provider.

Family members bear the expense sometimes

Many people sign the prepaid funeral service plan before their demise and this contract shows a certain amount that you pay. But it is not certain that there will be no charge after this payment.

In case some extra things are added to the plan, your close family members or friends have to pay for them.

Utilization of your insurance policies by funeral homes

Not every Funeral Home takes advantage of your life insurance but some funeral direction teams include the amount of your life insurance policy for the payment of services.

You can understand it in this way,

If you have signed the contract in which it is mentioned that your life insurance policy will be used by the funeral home, you can not expect the remaining amount for your family members. The funeral home will not return the amount which is left after the utilization.

Chances of scams

According to a report, many funeral homes take advantage of people’s hard-earned money by not offering the same services. You must read the plan carefully before paying for it or signing it. Your family members should also know about your plan and the amount that you pay for it so that they can put their points legally.

Thorough information about the Preplanned Funeral Plans can save you from the disadvantages and cons of it.