Written by Option Insurance Group on May 7, 2017 in
    • You certainly can, and some people do. This approach has advantages and disadvantages. When you pre-pay for your funeral, you get to personalize it to your taste. You can grill different funeral directors until you find one you love. You can pick out the perfect casket and the choicest plot in the cemetery. Another advantage of pre-paying is that it will most likely prompt you to talk your choices over with loved ones, leaving them more confident that they know your wishes.
    • Different states have different guidelines governing funeral pre-payment. The government wants to protect people from writing checks to unscrupulous folks who will take the money and run, or charge your family extra on top of what you pre-pay. Before you pre-pay, check your state guidelines for how the money will be held until your death. Make sure you know what you’re paying for. Most importantly, are you locking in the rate for your funeral, or is there a chance your family would face an up-charge when the time comes? If you do any pre-planning or pre-payment, it’s important to tell a loved one what you did and where you keep the documentation.
    • The disadvantage of pre-payment is that it’s less flexible than burial insurance. Will you or your family be able to get a refund if your funeral plans change? Will you lose the money you pre-paid if you move to a different area? What happens if the funeral parlor goes out of business? With final expense insurance, your surviving relatives will receive a payout they can spend anywhere. If you go with final expense insurance instead of pre-payment, you have less control, but your family has more flexibility. The choice is yours.
    • If you want to leave a clear indication of your wishes without necessarily locking in the funeral home, you could always combine burial insurance with a document stating your preferences. Kept wherever you keep your will (you have a will, right?), this document would cover issues like burial vs. cremation, open vs. closed casket. etc.
    • Find out about Social Security Death Benefits
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