What Is a Prepaid Funeral and How to Determine The Right Contract?

by Andrew Lope Business promotion

In the past couple of decades, prepaid funerals have also become hugely popular and accepted. Funeral homes across the globe have managed to convince people that this concept comes with a vast plethora of benefits not just for the deceased or the contact holder but mainly for the family of the person holding the contract.

What Is A Prepaid Funeral?

According to experts, a prepaid funeral contract is a legal agreement between a person and a funeral home regarding the payment and arrangements of a funeral ceremony. This agreement says that whatever arrangements are there to be made at the funeral event will be decided now, and the contract will include all the details. The term ‘prepaid’ is added as the payment for all the arrangements related to the funeral event would be made in advance. Several funeral services would be offered, including the option of choosing a funeral director as well.

The money collected from prepaid funerals contracts is invested and held in the registered funeral fund by funeral homes, where it accrues interest and, in fact, compound interest as well. Once the right time comes, the money is withdrawn from the fund and paid directly to the funeral director or the funeral home. This amount will cover all the details of the funeral services and related requirements, management, etc.

A prepaid funeral contract may include the following –

• Funeral home services

• Burial

• Cemetery services

• The casket

• Flowers

• Transportation

• Other services or items

How To Determine The Quality Of Prepaid Funerals Contract?

One thing to understand right in the beginning is that these contracts are expensive, and hence before you purchase one, you will have to take care of several things. Some of them are listed below –

• Make sure the funeral home has a good reputation

• It is financially stable and gives you the needed information to make good decisions

• Ask your family and friends for recommendations

• Shop around and interview a few different funeral homes

• Make sure you feel comfortable with the people at the home you choose

• Find out precisely what is included in the contract

• Ask how much they charge to set up your contract

It is recommended to use a checklist while going for prepaid funeral services or signing the contract.

What Should I Do With My Signed Contract?

The process is simple that once the contract is signed, the main document of the contract would be handed over to you, and the copy would be be saved by the funeral home.. What you can do at your end is give a copy of this contract to the people you trust. The immediate successor is the first person to get this copy, and the same can be given to friends, relatives or the lawyer as well for wills and estate-related issues. It is expected from the contact holder to keep this signed original document well-preserved with all other necessary documents related to this contract.

Checklist to Follow Before Buying a Prepaid Funeral Contract

Compare Several Funeral Homes

The first step is comparing the cost of prepaid funeral services from different funeral homes, and it is the responsibility of these funeral homes to give a written quote for the services. You have to ensure that all the services and products that you want are listed in the contract, and if not, you should ask for the list of the prices of add-ons and accessories to be used during the funeral event.

A Written Contract

Once a contract is signed, the funeral director should ensure that a written copy is provided to the client. This funeral copy should have the details of every funeral requisite and service that has been paid for.

You also have to make sure that the cost of the prepaid funeral is fixed, look at the payment terms, and ensure that there are no hidden costs or charges included.