There has been an increase in funeral and burial costs for the past ten years. That is probably why burial insurance is heavily marketed to seniors nowadays. It is easy to set up, and it can be ordered online or by telephone, which means there is no physical exam needed. However, there is another burial plan you don't want to get as much as possible.
At some point, you may come across a prepaid burial plan offer, which usually comes from a funeral home. Keep in mind that this is different from a burial insurance policy. Prepaid burial plans will let you plan out your entire funeral and pay for it in advance.
Your Money Will Be Better Off In The Bank
When you have money in your savings account, it will earn some interest. It’s not that significant, but it will still allow for the gradual growth of your funds. Additionally, the bank where you put your money is safe and protected by FDIC insurance.
You won’t get any of those assurances when you put money in a prepaid funeral plan. Your money is safer in your bank account, earning interest rather than going to the pocket of funeral home owners.
Funeral Homes Can Go Out Of Business
You never know how a funeral home is being run until it gets shut down. A poorly managed funeral home may end up mishandling your funds, and by the time you find out about it, you will have a hard time recovering your money. If the funeral home goes out of business, there is also no guarantee that the money you have given them will be returned to you. Keep in mind that once you make your prepayment to the funeral home, you can no longer transfer to another establishment because the original plan is specific to that funeral home alone.
Lack Of Provisions For Relocation
As mentioned, you can’t transfer between funeral homes. So what happens when you relocate? Coordinating funeral services for those who have moved residences would mean that the funds for their funeral expenses could be lost if they decide to have the services held elsewhere. Right now, you may think that you will never move, but you never know what will happen in the future.
Instead of getting a prepaid funeral plan, there are smarter ways to pay for your final expenses in advance. For one, investing in a burial insurance plan is a more feasible option to ensure that your money will be kept safe.
However, before you invest in a burial insurance policy, it is extremely important to discuss it with your family. They must know about what you are about to do so that should something happen, they know exactly which steps to take next.
There are a lot of insurance companies that offer burial insurance plans. Nowadays, that kind of coverage is one of the most sensible insurance policies to get, especially for seniors.
After all, there is nothing wrong with being prepared. By getting a burial insurance plan, you are doing yourself and your loved ones a favor.
Make sure to work with a seasoned insurance company when it comes to your burial insurance plan. Contact us today.