Why Pre-Planning & Pre-Paying Are Two Separate Options

Why Pre-Planning & Pre-Paying
Are Two Separate Options

Did you know that you can pre-arrange a funeral without making any financial commitments? Also, did you know there is more than one way to prepay for a funeral? Knowing your options is an integral part of making the best decision for you and your family. Pre-planning a funeral is simply making an arrangement, either formal or informal, that helps family members or the funeral home know what you want your funeral to be like. Pre-paying is a financially sound choice that ensures your family is not financially burdened by your funeral, whatever your wishes are. From this point of view, pre-planning and pre-paying are inherently similar, but they offer different levels of certainty. We have put together some thoughts on why prepaying is a strong option for you and your family to consider. 

Three Ways to Pay for a Funeral

There are three ways to prepay for a funeral. 

  1. In Advance: this option will place your money in a trust so that it can earn interest over time. This can result in all funeral costs being covered and sometimes leaves the family with extra money - with this they can add to the funeral or add an element to the ceremony. 

  2. Through an Iinsurance Policy: if you die and you are covered, the insurance policy will generally cover the funeral and can help your family with various estate taxes or other end of life expenses. 

  3. Making payments: Because funerals can be expensive, paying for everything in one lump sum is just not possible for some Canadian families. In this case, you can make small and incremental payments over time which helps make paying for the funeral more manageable. 

Inflation Impacts Death Care Too

Like any other industry, inflation impacts funeral service and has increased prices in some ways. Though it is not a primary benefit of pre-planning and more on the prepayment side of things, you can save a lot of money by paying in advance. Due to the fact that the cost of living goes up every year, funeral homes have been charging more and more to cover their costs, and this trend is not going to change anytime soon. Inflation is a reality in modern society. So why not protect yourself from it? If you prepay for your funeral, you prevent inflation from becoming part of the costs your family will need to cover. You are essentially locking in a “today” price. 

Why Prepaying Can be a Great Option

If you are the type of person who likes peace of mind, guarantees, and control over the financial future of your family, then prepaying for your funeral is a strong option to consider. It is one thing to let your family or the funeral home know what you want when you die. It is an entirely different thing to pay for it all in advance. 

When you pre-pay, not only do you make a commitment to your final arrangements and remove the burden of costs from your family, but you get plenty of documentation and protection. You are allowed to take your arrangement to another firm, you benefit from a guarantee that if your services are not available replacements of equal or better value will be provided to you and your family. 

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