Pre-Planning a Funeral
June 7, 2010
The idea of planning a funeral is generally not at the top of anyone’s “to do” list. It’s a job that almost always falls to the surviving spouse, children, or close friend of a deceased. However, taking the time to express your preferences or to actually make the formal arrangements can truly be a gift to your family and friends.
You likely know the feeling when a close family member or friend passes away. Whether it was an expected end to a prolonged illness or a sudden loss due to an accident, the event can produce a period of shock and sometimes uncontrollable emotions. If you are the responsible party, making arrangements for the funeral can be stressful. At the very time that you are mourning the loss of a loved one, you are thrown into making choices that can have significant financial implications.
Why Pre-Planning is Important
To reduce the stress on your family member or friend at the time of your passing, you should consider pre-planning your own funeral. Pre-planning can range from simply writing a statement of your desires to a contractual agreement between you and a funeral provider for future services. Pre-planning does not necessarily include pre-paying, but that can be a possibility as well.
· Relieve the family of the burden. Making unguided decisions can increase the level of stress already felt by individuals and can sometimes cause conflicts among family members. Taking the time now to either make your preferences known or make the actual arrangements can greatly reduce this burden.
· Avoid over spending. When you pre-plan your own funeral, you can choose the spending level that you feel appropriate. Your loved ones may be less mindful of the expenses when required to make their decisions in such a short time period. Added sales pressure along with the misconception that the amount spent directly reflects the respect and love for the deceased can cause over spending.
· Ability to specify preferences regarding memorial service. Many people enjoy choosing the participants to be included in the service as well as the music, favorite readings, and flowers. It may seem trivial and unnecessary to go this to level of detail, but if you do not specify these items, someone will need to make these decisions.
· Reimburse family expenses. If you would like to reimburse family members that would incur travel expenses to attend your funeral, such desires should be expressed. You may need to work with your attorney to include this provision in your will document.
Paying for Services
You can plan to pay for funeral expenses by designating funds in a savings or investment account for this purpose. It is also very common to utilize life insurance proceeds to fund funeral expenses.
According to industry statistics, the cost of a funeral increases 6% to 7% per year. At this rate, the cost essentially doubles every ten to twelve years. If you are concerned with maintaining sufficient funds to compensate for the increased cost, you may want to consider a guaranteed cost plan.
· Guaranteed Cost Plan. You can enter into a contractual agreement with a funeral provider today and pay an agreed upon amount for the products and services you have selected. In exchange, the funeral provider guarantees to provide the promised services in the future. It is important to work with a reputable funeral provider and have a complete and clear understanding of what expenses are included and excluded from the agreement. As a resident of the state of Indiana, your payment is held in an account established under the provisions of the Indiana Funeral Trust. These provisions were created to ensure a safe arrangement for holding your funds until needed to pay for services. By using this type of an arrangement, you will have pre-paid the majority of your funeral expenses. There may be some unexpected expenses that will require additional payment at the time of the funeral.
Communicate with Family
Whatever extent of pre-planning that you decide to do, be sure to share the details with your family. This will allow them to understand your preferences and will likely relieve any concerns they may have had. If they are not informed, they may move forward with making plans, not recognizing the work you have already done.
Summary
Whether you are currently healthy or dealing with an illness, pre-planning your funeral can be an act of kindness for your family and friends. It is an opportunity to express your personal desires and to potentially avoid conflicts that can arise after your death regarding the details. Though it may not be enjoyable, put it at the top of your list of “to-dos”.
