Legal News: What is a Prepaid Funeral Plan?

A prepaid funeral plan is a strategy used to pay for the costs associated with a funeral ahead of your death, laying out all your wishes and preplanning your final arrangements.

For many, it's peace of mind knowing that the burden of payment for the final expenses will not fall on your family.

It also creates a roadmap for your loved ones on how you would like your final arrangements handled.

Here are four main types of prepaid plans that are used for your final arrangements:
 

Whole Life Insurance 

In some cases, the funeral home may be the beneficiary of such a policy. Upon your death, the benefit is paid directly to the funeral home for your final arrangements.

Burial Insurance 

A policy purchased to cover the costs associated with your death and burial. The beneficiary may be anyone, and the beneficiary should distribute the funds to cover the final expenses.

Revocable Trust 

This often allows you to pay the funeral home in installments. The funeral home holds the payments in escrow until the time of your death.  This trust can be changed or revoked.

Irrevocable Trust 

This is similar to a revocable trust, but this trust cannot be changed or amended once signed. The beneficiary of the trust is the only one that can change or amend the trust. In this case, the trust beneficiary is the funeral home.

Takeaway

Prepaid plans help take away the financial burden most families go through around funeral arrangements and help your family in the planning process. 
  
In almost all cases, when planning for your final arrangements, it is best to talk to your trusted Estate Planning Attorney or Financial Advisor.

Call Alex Matulewicz at 508-660-0331 today and get started!