Over 250,000 people die in Canada every year. What that number means on a human scale is that a quarter of a million families find themselves grieving and trying to make funeral arrangements on an annual basis.
At some point, you too will find yourself trying to figure out how to pay for the burial expenses of a loved one.
For some, the best way to go about managing that process is to get out ahead of a loved one's death and opt for prepaid funeral plans.
With prepaid funeral plans, you make funeral arrangements and pay for them prior to a person's passing. That way, you don't have to worry about anything but grieving when something bad happens.
Below, our team breaks down the pros and cons of prepaid funerals so you can decide if they're right for you.
What Is and Where Does One Get a Prepaid Funeral Plan?
As we mentioned in this article's intro, a prepaid funeral plan is when a family opts to plan and pay for a loved one's death in advance. These prepaid services are offered by many funeral homes and are billed as an excellent way to save yourself from the stress of funeral planning amidst adversity.
What Are the Pros of Prepaid Funeral Plans?
Prepaid funeral plans carry a few key advantages with them, including the following:
Reduction in Stress
Dealing with the passing of a loved one can be an incredibly stressful experience. Coupling that stress with having to make arrangements for a funeral can be overwhelming.
When you prepay for funeral services, everything will be arranged for in advance and therefore, you'll only need to manage small details when the worst comes to pass.
Insulation From Emotional Spending
When faced with purchase decisions during an emotional period in your life, chances are you're going to pay less attention to costs in favor of just getting things done.
That disposition often leads to people spending well in excess of what they should on funerals.
When you're able to negotiate funeral arrangements on a prepaid basis, you'll be in a good emotional state which means that you'll have a better opportunity to compare costs and find the best deals.
Prepaying means purchasing tomorrow's funeral at today's prices. Because of that, you will likely enjoy some protection from inflation through prepayment.
What Are the Cons of Prepaid Funeral Plans?
Prepaid funeral plans are not holistically advantageous. Below are some cons to be aware of before buying into a prepaid product:
Funeral Homes Go Bankrupt
There could be a lot of time between today and when your loved one gets buried. If you have a deal with a funeral home and that home goes bankrupt between when you prepay them and when your loved one passes, you could be out a lot of money.
Because of that, you'll want to ask what sort of assurances you'll have when prepaying for services, if any.
You Won't Be Able To Change Your Plans
While getting buried at a particular place may sound good today, it might not sound good tomorrow. If you already have an arrangement in place with a particular funeral home, you'll be locked into those arrangements or may have to pay a hefty fee to break your contract.
If the person you're planning for tends to be whimsical, you may want to hold off on prepaying for funeral arrangements.
Some funeral homes are one-stop-shops. That means that when you buy a prepaid product from them, they'll guarantee you that, no matter inflation, you'll get everything for your service taken care of at the agreed upon price.
If your funeral home goes to external vendors for things like flowers though, it may be that any price hikes those vendors impose will get passed onto you.
Be sure to understand what's included in your prepaid funeral and the implications of costs rising before signing onto anything.
It May Be Better to Put Your Money Elsewhere
Sure prepaid funerals can protect you from inflation. But is that really the most lucrative place to park your money?
If there's a place you could invest your funeral funds, that grows at a pace that runs circles around inflation, your money is going to be more valuable sitting there than in a funeral director's pocket.
A Better Alternative
We understand that prepaid funerals give families the peace of mind they're looking for in the wake of a loved one's death. Given their lack of flexibility though, we do believe that there are better options out there.
Namely, funeral expense insurance.
With a quality funeral expense insurance policy in place, you will not only be kept safe from the shocking and unexpected costs of funerals but will also enjoy the flexibility you want when making arrangements for a loved one.
You can find a high-quality funeral expense insurance policy right here on Insurdinary.
Wrapping Things Up
While prepaid funeral plans may be what some families are looking for, our advice is to forgo paying any particular funeral home up-front for services and instead, opt for an insurance plan.
Insurance is flexible and provides the protection you're looking for at a manageable cost.
Insurance is also underwritten by companies that have a lot more stability than any particular funeral home. That means you don't have to worry about the money you invest falling through if the economy takes a turn.
Find the funeral expense insurance plan you need to secure your family's peace of mind today or contact our team at Insurdinary for help getting matched with the right plan for you!