How to Start Financially Preplanning for Your Funeral TodayOct 25, 2021 | 3 MIN READ
It can be difficult to think about our own death, but planning for it is one of the ways we take care of our loved ones. Your passing will be emotional for your family, and paying for a funeral can be financially burdensome.
By preplanning your funeral, you can take that financial stress off your family so they can focus on celebrating your life. On top of it, you can plan the celebration of life that reflects how you want to be remembered. We know this process can be daunting and that you might not know where to start. In this article, we’ll take you through the process step by step.
1. Determine your funeral budget.
First, you need to figure out how much you would like to set aside for your funeral. It’s important to understand that the various components and costs that go into this event can add up quickly. Funeral costs can vary widely depending on how simple or elaborate you would like the service to be. The average cost of a funeral, however, ranges from $8,000 to $10,000.
Here is a sample breakdown of funeral costs:
- $2,500 Basic services fee
- $2,750 Casket
- $1,500 Funeral home fees
- $925 Memorial service
- $750 Embalming
- $500 Transportation
2. Find a funeral home that’s right for you.
Funeral directors are an important resource for helping you plan your celebration of life. They are there to walk you through everything you can expect in the funeral planning process. They can help you pick a casket, set up a charity fund, source flowers, and arrange everything else you will need. By working with a funeral director, you can ensure that you get what you want and what your family needs while staying within your budget. A funeral director can also educate you about preneed insurance and discuss whether that is the right option for you.
What is preneed insurance?
Preneed insurance is a life insurance policy that you purchase through a funeral home, which uses your money to fund your funeral. You begin by sitting down with the director of the funeral home of your choosing to discuss what you need and want for your celebration of life. Then, the funeral director will draft a statement of goods and services. This will detail the services you select and their estimated costs. You will then fund your preneed policy with either a single premium or periodic premium payments. When you pass, the funeral home will use the policy proceeds to provide your funeral selected services. Any amount left over will be disbursed to your designated beneficiary.
3. Talk to the funeral home about how to qualify.
If you decide that preneed insurance is the right option for you, then the next step is to get your policy. Luckily, you won’t have to worry about qualifying. Most preneed contracts are guaranteed issue, meaning no health questions are asked. However, some companies may offer better rates if you can answer no to certain questions in the application.
ELCO’s Preneed Advantage
ELCO’s Preneed Advantage product allows you to financially plan for your funeral and make your passing less stressful for your family. With ELCO, you have the opportunity to grow your policies with the help of annual dividends.[*] We offer a single-pay option as well as a multi-payment plan. Single pay requires a larger amount of money up front (with a minimum premium of $500), while multi-pay allows you to stretch payments over a longer period of time.
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[*] Dividends are not guaranteed