Would you consider prepaying for your funeral?
For most people, the funeral planning process is a mystery.
Pre-paying your funeral relieves your grieving loved ones from the burden of making the various decisions and choices that are required when someone dies. Good investment? Probably not. But you could be doing someone a favour nonetheless.
In most provinces, there are two ways to go. You can either buy an insurance policy that includes pre-paid funeral arrangements, in which case the insurance company will look after the costs. Alternatively, you can purchase pre-paid funeral arrangements directly from the funeral home.
Here are a few things to watch out for.
Once you’ve made your arrangements, the funeral home must give you a copy of the contract, signed by both parties. The document should have an itemized list of services you’ve agreed to purchase and how much you’ll pay for them.
When you give the money to the funeral home, it must then deposit the money into a trust account (held by a bank or trust company), where it will earn paltry (although tax free) interest until the contract is fulfilled or cancelled. You could do the same with a TFSA, of course.
Even if you don't have the money to pre-pay, you can still pre-arrange your funeral with a funeral home. While your survivors will still have to negotiate costs, at least they know your wishes.
Has anyone in your family gone this route? Do you think you saved any money? Or was it simply about peace of mind?
By Gordon Powers, MSN Money
Posted by: No Stress | Apr 11, 2021 2:19:30 AM
If you can afford it, it is absolutely a great idea. The price you pay now will only increase, be it when you die in 5-10-20-30 years. We have done it for my Mom and I will be doing it this year for myself. The only other alternative is to buy about 25K in life insurance, which should cover your funeral... again depending on when you die. Otherwise, you're only going to strap your kids with the additional expense and stress.
Posted by: Less stress | Apr 15, 2021 6:15:23 AM
My Dad had a prepaid funeral arranged. It ended up that he saved money. A few hundred dollars ... perhaps with the money invested might have done better however with financial advice these days who knows. Funeral director did point out he lost money.
The main thing was that it was so much less stress on the family. We knew and respected his wishes and there was a lot less to figure out.
Posted by: Pat | Apr 15, 2021 8:03:39 AM
Boy, was I DYING to hear get this information. what a GRAVE statement....
Did you know that my funeral director signs her Christmas cards, EVENTUALLY YOURS..
I always wonder whether female funeral directors ever get MOURNING sickness.
Life is short, get as many laughs as you can before your number is called.
Posted by: Eddie | Apr 15, 2021 1:02:28 PM
Preplanning & prepaying helps the family big time. Allows them the chance to grieve and not have to worry about appointments and difficult decisions. Been there and was so glad it had all ready been done.
Posted by: Nancy | Apr 15, 2021 4:33:59 PM
My husband and I bought our plots, may years ago, cost $500.00, very cheao to what they are going for these days. He died 3 years ago, we had his favorite sitting stone at our house. I had the stone taken to the plot where he was buried, then had a 8 x 10 plaque (lazered) with our pictures on it. His name, birth/date etc. My name and birth.. now to fill in the death. Very inexpensive,you need to shop around like anything else. Having a Graveside service or church is cheaper than a funeral home, and being cremated is cheaper than not.. Depends on what you want for those you leave behind..
Posted by: Bob | Apr 15, 2021 7:53:41 PM
I HATE funerals!!!! There is no way in HELL Im going to subject my family to it EVER!! I've decided to donate organs to the donor bank and my body to science and when they are done with me they can turn me to dust and splash me to the four winds for all I care. I want my family to remember me alive not some stiff in a box!
Posted by: ray larder | Apr 15, 2021 8:07:10 PM
Just went through a funeral 2 months ago.
Had the body cremated in the town he lived in, $2500.
Memorial and lunch at the church $500.
remember the good times, don't waste money on funerals.
Posted by: Been There, Done That, and That | Apr 16, 2021 12:03:11 AM
My wife & 15 mth old daughter died over 24 yrs ago when our house burnt. Obviously, we hadn't expected it, not like someone with an illness or someone that young. However, the cost then was not much, and it was covered completely by Canada Pension Death Benefit, not the cost of tomb stone. My parents both saw what I went through not being prepared, and immediately pre-arranged their funerals. My Mom died 4 yrs ago, and my Dad just died recently. Turns out with the interest rates back then, even with the increased costs of funeral today, there was money left over, which completely offset the engraving cost. Having died once in hospital over 10 yrs ago myself, I not only made my arrangements, but prepared my obituary, revised my will, did a living will, and power of attorney, plus program with lots of music for my Celebration of Life, as opposed to funeral service. Also included are what I want served for lunch, plus tables set up for euchre, cribbage, & backgammon. My sisters & lawyer have copies of my wishes.