Is it Worth to Pre-Pay Your Funeral Arrangements?

Planning and paying for a funeral can be a difficult task for family and friends. They need to make tough decisions, like choosing the right type of casket. Plus, they will be dealing with grief.

To reduce this burden, more people are opting to plan the arrangements ahead of time. When you pass away, the funeral director will follow your directions, creating the type of ceremony you want. While funeral pre-planning is a good idea, what about paying in advance? If you are considering this option, here are some of the things you should know.

Peace of Mind

Sadly, organizing a funeral can be expensive. Even a basic cremation can cost a few thousand. This can sometimes create a significant debt for grieving families. The last thing you want is to pass on a financial burden to your family. When you pre-pay, all the money has been taken care of.

Lock in Today’s Price

When you decide to pre-pay is to lock in the current price. This will protect you against inflation, which causes the price of items to rise. Over the long term, this could be saving you a significant amount of money.

Impact on Taxes

It’s also important to consider the practicality of pre-paying for funeral services in Kingaroy. Funeral costs won’t be counted as an asset. Because of this, paying for your funeral won’t have an impact on your pension payments.

Safety of the Funds

One of the most common concerns is that your money won’t be secure. However, the system has been designed carefully, ensuring that your funds are kept safe at all times. They won’t be held by the funeral home. Instead, the money will be transferred to a third party, where it will often be invested. These funds can’t be accessed by the funeral home until you have passed away.

Other Ways to Pay For a Funeral

There are a few other methods that you can use to pay for a funeral. Commonly, these will be funeral bonds. This allows you to set aside some money to pay for the funeral. It will be invested, so it should increase in value over time.

At other times, people might opt for funeral insurance. This involves you paying a fortnightly premium. When you pass away, the policy will be paid out and the money will be used to fund a funeral.

There are a few common problems with these approaches. First, it’s possible that the money released won’t be enough to pay for the funeral. In this case, your family will be required to pay the balance.

Secondly, there is a risk that you will end up overpaying for your funeral, especially if you have funeral insurance. Often, the premiums will be tied to your age. As you get older, you will be expected to pay more.

Conclusion

In many cases, it’s a good idea to pre-pay for your funeral arrangements. You’ll be able to use the best funeral directors in Kingaroy and get them to organize an intricate ceremony. But you won’t