Financial experts encourage older people to preplan their funeral arrangements, including how those arrangements will be paid for. However, they advise against paying a funeral home ahead of time, even if this locks in the price. There are a few important reasons to set up a plan with one of the Funeral Homes in Milford, OH and then set aside the money in an account for this purpose.
Funeral homes that offer prepaid plans typically place the money in a trust fund or buy an insurance policy with the business as the beneficiary.
Earning Interest
Perhaps the most obvious reason to keep the money in a savings or investment account is that it will earn interest and grow over time. That won’t happen when prepaying for funeral services. The man or woman making these arrangements may live for many years to come. If someone sets up a funeral plan at age 70 and lives to age 85, that’s 15 years of interest payments.
Buying a Cemetery Plot
Preplanning with Funeral Homes in Milford, OH can cover everything without having to pay for any of it up front. The one exception might be if the person wants to buy a graveyard plot in a specific cemetery, especially if this individual wants the grave to be close to other family members in the final resting place.
Changing One’s Mind
In contrast, some men and women don’t have a preference for burial and may not want their cremated remains to be in a cemetery. Prepaying for a funeral can be problematic if the customer ever decides to move out of state. The funeral home may not be obligated to either return the money or honor the program that was set up in a far-off location. Nearly all states do not require a refund.
Making the Plans
The customer will want to set forth details about a funeral or memorial service, cremation or burial, and other personal preferences. Funeral homes usually provide forms for this purpose. After making these plans with an organization such as Dodds Memorials, the man or woman must tell some immediate family members. Otherwise, the day may come when the person passes away with nobody knowing preplanning had been done.
