By: Paul Lorrah
Can Making arrangements and paying for funerals in advance have problems?
Bob Lockler, who did not want to leave his family with the burden of paying for his funeral, made his own arrangements with a local funeral home and paid installments on a $10,000 plan for 12 years. Just when he thought he had paid for everything, he was surprised by another $3,000 bill that suggested he still owed thousands of dollars.
Although some of the items on this new bill turned out to be suggestions and not necessary, there were other charges that were necessary for him to pay, including the costs of digging his grave, opening and closing the casket, and the sales tax on the casket.
All were additional costs that Mr. Lockler would have to pay but were "buried" [no pun intended] in the fine print of his contract with the funeral home.
It is important to be certain exactly what you are "buying" when you purchase a funeral plan to avoid being hit with a larger bill than they expected. Ask the person selling you the plan if there is anything the plan does not cover.
The Federal Trade Commission [FTC] has information and a checklist to use, for more information click here
What's another option?
Pre-paid Funeral Trusts are another option. A funeral trust id a pre-paid product that is held with an insurance company for safety, it accumulates interest and you don't have to choose a funeral home or pre-plan. There are few if any restrictions on what you can use the money for when the time comes [so long as it is used for the funeral]. these have many benefits over a pre-planned funeral at a funeral home. For more information on Funeral Trusts click here
Questions? contact us, we can advise you and review any contracts in advance.