Prepaid burial contracts cost a lot of money. Before you buy one: When buying a prepaid burial plan, you can choose a guaranteed plan showing the exact goods and services you want and the price at which you accept is blocked. This means that even if prices go up, your loved ones will no longer have to pay. Unsecured plans do not offer this protection. This means that if you opt for a coffin that costs $3,000, and if you pass, the cheapest boxes are $6,000, your loved ones will have to pay the extra $3,000. In addition, there are revocable and irrevocable contracts. With a revocable contract, you can terminate the contract and get most of your money back. You cannot terminate an irrevocable contract, but you can transfer it to another funeral service provider. These are all aspects that you should discuss with the companies you are considering. To relieve their families of some of these decisions, more and more people are planning their own funerals, dering their funeral preferences and sometimes paying in advance. In fact, many former lawyers advise investing in assets that cannot be counted by Medicaid or SSI. Learn more about prepaid burial plans and whether they are for you and your loved ones. If you decide to buy a funeral contract, it is best to buy an irrevocable contract.
Remember: irrevocable contracts cannot be terminated or refunded, but most are usually transferable, so you can decide to change funeral homes in the future. But don`t pay more than fair value for anything. After listing all the information you want to include in the directive, the funeral director will come at a price, which will serve as the basis for your policy. One way to ensure that money is available to pay for the funeral is to create a pay-as-you-go account (POD) in your bank. Make the person who manages your burial arrangements the beneficiary (and make sure they know your plans). You will keep control of your money while you live, but if you die, it is immediately available without having to go through the estate. A prepaid burial plan is not so much a product as a preparation strategy. It`s just a matter of taking steps to design everything related to your funeral and paying for the funeral home in advance. The most obvious advantage has already been mentioned – you are blocking in today`s prices. The Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) began tracking funeral expenses in December 1986.
Since then, funeral prices in the United States have risen almost twice as fast as the consumer prices of all items. Funeral expenses increased by 227.1 per cent and prices for all items by 123.4 per cent. This means that a funeral in 20 or 30 years will cost much more than it does today. If you buy a funeral contract, you can take your own burial arrangements in advance instead of paying the city, state or family. If you have a very low income, the city or state only pays up to $1,200 of the cost. If you decide to pay in advance for a funeral, let your loved ones know. Record all specific instructions for burial, cremation or organ donation. Make copies of everything and distribute it to family members, friends and perhaps the lawyer who created your will.