Why Pre-planning for Final Expenses is Crucial
Pre-planning funeral expenses can be incredibly helpful in providing peace of mind and security for yourself and your loved ones. It can ensure that you have taken the necessary steps to handle your funeral as you want it to be. Taking a proactive approach to end-of-life planning can help alleviate the stress of your loved ones having to figure out the details of your funeral after you are gone, and it can also help to ensure that the funeral cost is taken care of. Additionally, pre-planning can help ensure that the funds are available to cover the cost of the funeral, as the funds can be placed in an insurance policy or trust to guarantee that the money is there when needed.
For context, a trust is an estate planning document that gives fiduciary power to someone else (or you) to manage your finances and assets. There are inter vivos (living) and testamentary (death) trusts, and reasons for setting up either type of trust can range from tax savings to being specific regarding how beneficiaries receive gifts.
4 Steps to Advanced Final Expense Planning
Talk to a financial planner to discuss your options for saving for funeral expenses. They can help you develop a strategy that meets your needs and budget.
Consider purchasing a life insurance policy with a death benefit that can be used to cover funeral costs and offer extra money for other debts.
Seek out a trusted funeral home that offers pre-payment options for funeral costs.
Open a dedicated savings account for funeral/cremation and related expenses and set aside monthly money. This can be a great way to plan and ensure that your loved ones are not burdened with the costs. Credit Unions and banks, like OneUnited, with no or low monthly costs, are great options!
