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Truth About Funeral Pre-Need Plans vs. Final Expense Insurance

February 17, 20247 min read

It’s never easy to deal with a loved one’s death. Even though it’s already tough when they pass away suddenly, worrying about how their funeral pre-need arrangements will be handled can make it even worse.

It will be easier for you to choose which choice will work best for your family after reading this blog post, which compares funeral pre-need plans and final expenses. Starting with preneed life insurance now!

What Is Pre-Need Burial Plans

“Everything can be so overwhelming.

What distinguishes the best funeral insurance

with an A+ rated insurance funeral provider

from pre-need funeral insurance…”

Pre-need insurance: What is it? A pre-need funeral arrangements is used to pay for the costs of a regular funeral or a cremation.

How exactly does a pre-paid funeral plan operate? You and the funeral home work together to develop a pre-need agreement and prepare your funeral. Your funeral homes receive a deposit from you.

You actually conduct business with the funeral home directly. Depending on the plan you select, you could pay a large sum up front or make regular installments that could cost $50 to $150 or more per month.

The typical cost of final expense insurance is much lower. (This will be covered in more detail in this post.)

Pre-Need Funeral Planning Checklist

What is a pre need insurance arranger?

These funeral costs may include your casket, the cemetery plot, music, flowers, embalming, interment, transportation costs, and any fees the cemetery may increase. The use of a hearse or van, preparation of the grave, and all funeral rites are included.

“The main reason why you should stay away

from the pre-need plan trap. There are more negatives

than you think and as a senior specialist, I want

to spare you and your family the suffering that

I have witnessed too many times.”

Are Pre-Need Burial Plans Worth It

Are pre-need burial agreements a wise decision? Simply said, NO! Here are some reasons why:

Funeral homes could file for bankruptcy. How will you be certain that the fees have not grown when you pass away? You may not be able to pay for all funeral costs with the money you have pre-paid.

There are absolutely no assurances, therefore your family might still be required to pay out of cash.

The funeral home you select is now your beneficiary, which is very significant. It is typically a family member, such as your spouse, adult children, or another close relative.

“Can you safely prepay for a funeral?”

What transpires if the funeral home’s owners change? What occurs if you relocate outside the state? You should consider these and other issues before agreeing to a pre-need contract with any funeral facility.

Pros and Cons of Prepaid Funeral Plans

As the population ages, preneed insurance programmed are becoming increasingly common. Here are some details on the advantages and disadvantages of these kinds of plans, along with two examples of pre-need funeral homes in your area.

A pre-paid funeral plan can be the best option for you if you think that making your own funeral arrangements in advance will help your family ones cope with your passing.

Pre-need funeral plans provide you the opportunity to lock in current funeral product and service costs, ensuring that your loved ones won’t be required to fork out more money than the plan’s pre-determined cost when the time comes.

Preneed funeral insurance most notably offers comfort. knowing that the cost of the funeral won’t be a concern for your loved ones. And knowing that your ultimate desires will be carried out exactly as you wished can be very comforting.

However, there are a few drawbacks to pre-need funeral arrangements. First of all, they’re not always reasonable, so before enrolling, be sure to shop about and compare pricing.

Additionally, it could be challenging or impossible to adjust your plans once you’ve enrolled in a preneed funeral plan.

These kinds of strategies are also regarded as being really final. It means that if a family member passes away without registering for pre-need funeral coverage, the costs will probably be far greater than they would be if the dead had done so before passing away.

Is Final Expense Insurance Worth It

By applying for final expense insurance rather than a pre-need burial plan, you are ensuring that your loved ones will be protected against the cost of the funeral during a difficult and sensitive period in their lives.

Choosing between ultimate expense insurance and preneed insurance

In contrast to pre-paid insurance, the death benefit is paid to your beneficiary after your passing. All of the funeral costs we’ve outlined above will be covered by the death benefit.

There are no restrictions, and they are free to use any extra funds however they see fit.

Prepaid Funeral plans Pros and Cons

Your family won’t have to make those choices if you have a pre-paid funeral plan, which is a benefit.

You will be committed, which severely restricts you and your financial resources.

Your family won’t get a death benefit for your final fees or funeral expenses after you pass away.

Pre-Need or Final Expense Insurance For My Parents

Although a lot of people believe pre-paid is the best option, it is not.

In actuality, today’s prices are not tomorrow’s pricing. Will you be able to cover the remaining funeral expenses out of pocket if you begin making payments on a preneed insurance plan and your parent passes away?

Unfortunately, most of my clients have declined, in my experience.

Why should grown children purchase life insurance plans for their parents’ final expenses?

A final expense policy ensures that when your mom or dad goes away, the insurance company writes you a check for the death benefit within a 24-48 hour period for the face amount.

What Is The Average Cost Of Funeral Insurance

What influences the monthly premium price for last expense insurance?

This is a really good query. The basis for your final expense coverage, often known as funeral insurance, is your personal profile, age, and medical conditions. medicines you are currently taking.

Remember that these ultimate expense insurance policies are Day One Level Benefits as well. This is vital.

We aim to achieve this. Additionally, in order to establish the sort of coverage you are eligible for, we will ask you a detailed set of health and lifestyle questions.

To give you a sense of the monthly cost (see below)

For a nonsmoking, healthy 60-year-old male who wants coverage for $10,000 per year, the monthly premium is:

The monthly premium for 10k in coverage for a 60-year-old nonsmoker female is:

As you can see above, you should acquire your parents a final expense coverage right now. Rates rise as you get older if you don’t lock into an insurance.

Also keep in mind that as you age, your medical conditions may change and you might not be eligible for coverage at the day-one level. Ask us how to avoid spending extra right away!

About the Author

Hassan Sanders is my name. I am a Senior Specialist at

I actually serve as your personal counsellor as well. I’m here to help you accomplish your objectives of sparing your loved ones from financial hardships after your passing.

In a single phone call, I compare you to dozens of A+-rated Excellent insurance providers. I’m referred to as the one-stop shop machine!

Giving you the knowledge you need to make the best decisions for you and your family is my passion and my main purpose.

I am considerate of both your spending limit and your need for the best product at this point in your life.

I’ll be there to hold your hand the whole time. Call me right away at (855) 468-8900 to discuss all of your choices.


It can be difficult to choose between final expense insurance and a funeral preneed plan.

The good news is that we can assist you in determining which choice best meets your needs before it’s too late because final expenses are frequently unanticipated.

Let us do what we do best — aid — since we are aware of how crucial these choices are to you. Call us right now for further details, or simply click here to begin using our quick online quote request form.

Thank you for considering Allstate Life Insurance Company as your planning partner and source of financial security should the unthinkable happen to you today.

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