As long as people can avoid considering any thoughts about their own death, they typically will. In the process of discussing funeral and burial arrangements, most people readily acknowledge and appreciate the benefits of prearranged funeral and burials.

Preplanning is the most considerate way to relieve your survivors of the burden of making difficult emotional and financial decisions, and insure that your wishes are known and carried out. It should be recognized that your survivor's dignity or self worth is based largely on the degree to which they feel that they have successfully been able to incorporate your values and wishes into the ceremonies. It is at this time that your special requests may emerge and can be addressed. Preplanning before one is in poor health could ultimately save you thousands of dollars later.

When you decide to prearrange a funeral, care must be given to consider your needs of today and into the future. Things you will need to consider before making an informed choice:

What you want
How much you can afford to pay
If there are guarantees on the merchandise and services you choose
What arrangements, if any, are protected against inflation
What happens if you move and want to change funeral homes
Are there tax consequences to the funding arrangement
Are you protected against inflation

Preplanning a funeral is an easy two step process: 1) Decide on the funeral arrangements and execute a contract (Preneed Funeral Contract) to specify these items and their cost, and 2.) Determine the manner in which you fund this cost. This is usually accomplished either through life insurance or through a bank trust agreement. If you choose to follow only the first step, the price of the funeral will usually not be guaranteed.

This should identify the person selling the contract, the person purchasing the contract, and the person for whom the contract is purchased. In a few states, the only person authorized to prearrange your funeral may be a funeral director. Check your state law and the credentials of the person selling this contract. You may want to ask to see a copy of the agreement between the seller and the funeral home if the seller is not an employee of the funeral home.

All merchandise and services chosen should be completely described along with disclosure of the current price of these items. The funeral home is required by federal law to give you a general price list which contains the current cost of each individual item and service offered. It must also contain information on embalming, cash advance sales, containers for cremation and any required purchases.

You may choose any or all of these items. A funeral preplanning professional will be able to help you with each of these steps. Most funeral homes have their own Preneed professionals.

The Preneed Funeral Contract will state whether the cost for the goods or services will be guaranteed or non-guaranteed. If an item is guaranteed, regardless of the retail price of the item at the time of death, there would be no obligation to pay any additional money to the funeral provider. The agreement should also have a provision for goods and services of equal value to be substituted if the exact ones are not available at the time of need, at no extra cost.

Any service items which are required should be clearly identified along with an explanation as to why. For instance, embalming may be required if there is to be a viewing, or for other reasons. Or in some states, a casket may be required for direct cremations. If you are considering the prepurchase of merchandise, take factors such as the risk of loss, impact upon manufacturer warranties, and whether the funeral home selected will agree to accept the merchandise for use.

Any penalties or restrictions, including geographic restriction, on the funeral homes' ability to perform should also be disclosed on the Funeral Preplanning Contract.

Understand that legislation varies by state concerning guarantees and non-guarantees. Check with your state regulatory authorities if you have any questions.

A funeral preplanning professional can help you decide which is the best method to fund your prearrangement. There are typically several options available depending on whether or not you want the price of most items guaranteed. The most common choices for guarantees are:

Life insurance
Bank trust agreements

There are several insurance companies who specialize in this type of arrangement. Life insurance policies are available as either a single premium (one time payment), or as limited payment plans - usually for either three, five, seven, ten or twenty years. You will need to complete an application for this coverage. In most situations, the coverage you qualify for will depend upon your health. The total death benefit will be paid upon death so long as there are no misrepresentations on the application.

Trust agreements are another means to fund your funeral. Again your funeral preplanning professional can assist you. This arrangement allows you to either pay as a single premium (one time payment) or in limited payments. There is a greater risk with this form of investment if the death should occur before you have paid in total the contracted funeral amount; the funeral home may not be able to honor the guarantees of the Preneed Funeral Contract.