When it comes to handling money in a pre-planned funeral, deciding to pre-plan your funeral is a smart and brave one. Most of us do not want to dwell on dying, as it is a morbid subject. However, taking care of the details now saves you and your family time, money, and the emotional draining that often comes with death. The benefits achieved by pre-planning are monumental when you consider the difficult time your family will face.
One decision to make is how to pay for your service. There are different options to consider, such as:
Leaving the funds in the bank:
If you have the discipline and a trusted family member, you may consider stashing the required amount in a checking or savings account. While an option to think about, it’s imperative that you avoid the temptation to dip into these funds for emergencies.
Use an existing life insurance policy:
You can discuss the specifics with your agent, but the death benefit may be designated for funeral expenses. Remember to keep your beneficiaries up-to-date and not to let the policy expire.
Purchase a final expense insurance policy:
Handling money in a pre-planned funeral can be quite difficult without guidance, but with a designated final expense policy, you can rest assured that the funds will be available for your funeral.
Knowing how to plan a funeral is very difficult without the right assistance but when it comes to the finances, decide how you will fund your pre-planned funeral and then let your family know. Remember, if you choose to hold the funds in a separate account, your estate will need access to it. Allowing professionals to handle the pre-payment may be the best choice if you are concerned the money will be used up before your family needs it.