WHEN IS THE BEST TIME TO PREPLAN YOUR FUNERAL?
BENEFITS OF PLANNING AHEAD
When a family or individual pre-arranges and pays for a funeral service, the professional services and merchandise of the funeral home (this includes all services of the funeral home, the casket and burial vault or cremation container and urn), are guaranteed at the cost at the time of the pre-arrangement.
Once these services and items have been paid for, they cannot be charged for again. They are guaranteed completely.
Items such as newspaper notices, cemetery fees, and honourariums may be pre-paid, but because the funeral home does not control the costs, these items are not guaranteed. Yearly interest would be applied to the amounts set aside to offset these costs at the time of need.
The money that is held in trust or in insurance does not belong to, nor can it be used by the funeral home. The funeral home only has access to these funds when the death occurs, and proof of death is provided to the trust or insurance company.
If an individual pays monthly on a pre-arrangement, the funeral home may guarantee the prices, however it is not obligated to do so. There may also be an interest fee on the monthly payments.
Funeral pre-arrangements may be paid in one lump sum, monthly, semi-annually or yearly, over a one to ten year period. With Standard Coverage, full funeral benefits would be paid even if only one monthly payment had been made. With Non Standard Coverage, the benefit would be the amount paid in plus 10%, in the first year, the amount paid in plus 6% in the second year, and full funeral benefits thereafter. These plans can be paid monthly for as little as $24.00.
When an individual does not prepay the services and merchandise but only makes prearrangements, the prices are not guaranteed by the funeral home.