The Basics of Pre=need Funeral Contracts

As you explore your options for planning a funeral, you’ll find a whole new set of terms that apply to your choices.

The term pre-need, for example,  means a type of arrangement where you pay for funeral products and services in advance. You enter into a pre-need contract with a particular funeral provider, such as a funeral home or cremation service. You may pay the provider directly in a one-time payment or under an installment payment plan. Another option is to secure the contract with a preneed insurance policy, a specific type of life insurance. 

When you pre-plan, you decide the type of funeral or burial you want, what kind of ceremony you prefer, and the products you would like. Your plan can be as simple or as detailed as you like. You leave the instructions with your loved ones, and they take care of the details when the time comes. There is no payment required to pre-plan. Of course, it is best to have funds set aside for your family to use, but you don’t have to do this through a contract with a funeral provider. You can set aside cash in a funeral trust or payable-on-death bank account.  Final expense insurance  is another good way to cover your expected funeral costs.