Friday, 2 May 2014

What To Know When Considering Funeral Prepayment Programs

By Lisa Buick


The strong emotions accompanying the death of a loved can make sound business decisions regarding final expenses more difficult. Family members may ultimately spend far more than was anticipated or necessary. Funeral prepayment plans are designed in principle to eliminate the need for making those hurried, last-minute decisions.

Choosing a good plan from a reliable, well-reviewed director can also eliminate many related concerns. Placing final affairs in good order is both satisfying and practical, but realistically can also mean a major financial commitment. Customers should comparison shop just as they would when any large purchase is under consideration.

Signing a contract prior to actual need has been likened to buying insurance coverage against rising end-of-life costs. Like many other policies, the premium may be paid in regular installments, or one lump sum. Buyers should determine whether their long-term payments will actually end up costing more than the stated value.

Making sure these details are fully illuminated requires carefully reading the fine print. Funeral industry regulations vary widely by state, especially in the amount of money that must be kept in the policy trust fund. Well-documented abuses have occurred, and local regulations need to be carefully examined and understood.

Life is a series of changes, so make certain the policy allows them. Never assume that a cancelled plan will be refunded, or that a particular contract will necessarily cover all possible expenses, because there are finite limits. Thoroughly understanding a policy contract prior to signing is the best way to avoid disappointment.

With these caveats in mind, consumers who decide to make this type of investment enjoy greater freedom from unnecessary worry and concern regarding final wishes. Saving loved ones from the addition burden of making those difficult decisions is often well worth the cost.




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