Though it's seldom pleasant to think about the end of your life, planning your own funeral can help provide peace of mind by ensuring your significant others will understand your wishes once you are gone. As well as allowing you to decide on your own funeral arrangements, funeral plans also let you pay for most of the arrangements in advance.
As well as preventing any financial burdens from falling on your loved ones, pre-paid funeral plans also make good financial sense for you. Here are just four reasons why.
1. Protects Against Inflation
One common worry people tend to have about funeral planning is that costs often increase as the years go by. As such, there's often a worry that the money put aside today will not be sufficient to cover funeral arrangements at the time of passing. However, pre-paid funeral plans allow you to avoid such concerns since the price you pay now will still cover things in the future. The price will be locked in, so inflation won't have any effect.
2. Offers Flexible Payment Options
Funerals can be fairly expensive, so paying for one all at once can sometimes be a challenge. While pre-paid funeral plans can be paid at once with a single lump sum, you can also spread payments out over several years. By making monthly payments instead of paying all at once, the financial burden will be much easier to handle. Better yet, you'll often be able to select from a range of payment terms to suit your own financial situation.
3. Protects Your Money
Some people assume pre-paid funeral plans can be a financial risk since funeral homes may go out of business. However, these payments are protected. They are held by independent entities rather than funeral homes, and they can only be accessed once the funeral service has been provided. Even if your original funeral director is no longer in business by the time you pass, your loved ones can simply arrange for the plan to be transferred to another funeral director.
4. Can Maximize Pension Entitlements
Finally, one compelling financial incentive to use a pre-paid funeral plan is that any money paid into such a plan will not be subject to either the deemed earnings rule or income or assets tests. Since the government currently uses those tests to determine your pension entitlements, pre-paid funeral plans can be paid into while offering a way to maintain your current age pension benefits.
For more info about local pre-paid funeral arrangements, contact a local company.Share