The Truth About Prepaid Funeral Plans [MUST READ]


All of us have heard the horrifying tales of people who have been victimised when it comes to paying for funerals. Although that is a sad reality, it is unavoidably the case. What if, however, we informed you there was a solution to this issue? So that your loved ones won’t have to worry about these things when it matters most, what if we provided you the chance to prepare in advance? Prepaid funeral plans do just that.

Prepaid Burial Policies Are a Good Idea or Are They

Prepaid funerals generally have a lot of drawbacks when compared to a fully owned final cost or burial coverage. For example, when you prepay for a funeral plan, you are purchasing something with the expectation that it would still be accessible after you pass away.

In fact, the earlier you do this, the longer it will take for your family to learn whether the funeral home honours its promise. It is crucial to understand the advantages and disadvantages of pre-paid funeral plans.

It’s critical to understand that when you prepay for a funeral, you are essentially giving the funeral director control over EVERY aspect of the service. In other words, if they are still alive in 10, 20, or more years.

The funeral home could declare bankruptcy or, even worse, withdraw money from the escrowed bank account if money is mismanaged. In the end, there is too much at stake, particularly for a “for-profit” corporation.

In the worst case scenario, your family can be left with a hefty funeral expenditure in the hundreds. Keep in mind that you won’t receive a refund for the funeral you prepaid.

Things you should be aware of before purchasing a pre-paid funeral plan

More Reasons To NEVER Get a Prepaid Funeral Insurance Policy

If you’re debating whether to purchase inexpensive monthly funeral plans, keep in mind that you get what you pay for. In reality, consider the expenses you prepay in life and your motivations.

In actuality, you cannot ever replace a pre-paid funeral care plan. What occurs if you relocate to a different state? It cannot be brought with you! Also, in the event that the funeral home goes bankrupt, several jurisdictions do not guarantee your pre-paid funeral plan.

I recall that the Loewn Group Inc. requested $2.3 billion in bankruptcy court protection back in 1999. How is this possible when I pre-paid and everything was kept in escrow, you might ask? This is hurt, hurt, many families families families. many, many families families families. many. many families. families. families However, some states don’t provide protection in certain situations.

With a Last Expense insurance policy, however, you won’t have to worry about this since the state has a guarantee fund to shield customers from it and you may carry your coverage wherever you move.

The Truth About Life Insurance Versus Prepaid Funeral Plans

The ONLY way to ensure that you have piece of mind knowing the death benefit will be paid is to purchase life insurance. Furthermore, funeral costs will continue to climb, and you do not want your loved one to be saddled with hefty funeral bills.

How will a pre-paid funeral plan be adequate in a few decades if funeral costs continue to rise? Your family will be responsible for the majority of the “EXTRA” costs due to inflation, which is rising by 3.25% annually.

In other words, the cost of living today may easily quadruple, leaving your family on the hook. When that time arrives, the insurance provider will pay out under a standalone final expense policy.

DON’T Do a Funeral Payment Plan Under 50 Years of Age

In general, pre-paid funeral plans for people under 50 are a recipe for disaster. You would be better off creating a Totten trust in this situation.

You will also be required to make a long-term monthly payment for funeral arrangements. What would happen if you passed away a week after making your initial payment?

The Difference Is Covered By Your Family.

Your family will receive a settlement right away if you have a last expense burial insurance coverage! Indeed, even following a single payment!

In addition, if a life insurance business goes bankrupt, state rules will protect your death benefit. A pre-paid funeral plan won’t, on the other hand, if the funeral home closes.

A final expense policy also offers the option for the insured/owner to designate a beneficiary as an irrevocable trust, which forbids any modifications without the insured’s beneficiary or beneficiaries’ approval.

Are Pre-paid Funeral Plans Worth It

No, in my opinion! You are powerless. You make a payment and then count on a for-profit company to make payments years or even decades later.

Get a final expense funeral insurance coverage as a favour to yourself. You own it, and if you later change your mind, you may cash it out. With a prepaid plan, the funeral home is guaranteed to receive YOUR MONEY, but there are no further guarantees.

Choose a reputable carrier with the greatest alternatives above all else. The majority of funeral insurance policies include unstated benefits including riders for severe, chronic, and terminal illnesses. A death benefit that is significantly greater than a pre-paid funeral plan is possible.

You might use the extra money to settle any outstanding bills or to leave a legacy for your loved ones or grandchildren. In reality, there shouldn’t even be a debate because the disadvantages substantially favour burial insurance over pre-paid funeral plans.

To sum up, NOW is the greatest time to buy an affordable burial insurance policy! Do it right now.


The choice of whether or not to prepay for a funeral plan is ultimately up to you. It’s crucial that you completely understand all the drawbacks and advantages of both solutions before making your decision. We can assist if you’re looking for unbiased guidance on what may be ideal for your family going forward. Simply give us a call at (855) 380-3300 immediately, and a member of our staff will be pleased to address any inquiries you may have regarding final expense plans versus pre-paid funerals.