Pre-Planning vs. Pre-Paying
Don't confuse documenting your wishes with handing over your savings. Learn how to secure your future without financial risk.
Two Very Different Approaches
The Power of Pre-Planning
Pre-planning is the process of documenting your choices—burial vs. cremation, service type, and music—without necessarily paying for them today.
- Removes the burden of guesswork from your family.
- Ensures your specific legacy is honored.
- Costs nothing to put on file with a provider.
The Risks of Pre-Paying
Pre-paying involves giving a funeral home money today for a service decades in the future. While it "locks in" prices, it comes with significant risks.
- What if the funeral home goes out of business?
- What if you move to another state?
- Your money may be more secure in a personal "Totten Trust" or life insurance policy.
Consumer Advocacy Note: Before You Sign
If you choose to pre-pay, always ask: "Is this contract irrevocable?" and "What happens to the interest earned on my money?" In many states, you have the right to a contract that can be transferred to any funeral home in the country. Never settle for a restrictive agreement.