By pre-paying or pre-funding your final expenses, you can reduce the financial burden on family in the event of your death. Funeral home expenses can range greatly. They may be between $2,000 and $7,000 for a basic cremation (disposition of the body without a service) to between $6,000 and $12,000 for a full-service option. Pre-planning and pre-funding allows you the opportunity to compare options and secure the most cost-effective plan that aligns with your vision. As a bonus, you can also avoid inflation costs by paying in advance.
It can be empowering to make these decisions. You can ensure your wishes will be honored at the end of your life, and your family can focus on what really matters as they grieve the loss.
You can pre-pay or pre-fund a funeral in the following ways:
Place money in a trust so it can earn interest, which will cover the funeral costs and possibly leave extra money for the family
Buy an insurance policy that will cover the funeral services
Create a payment plan with a funeral home or end-of-life provider