It may sound depressing at first, but planning for the funeral of a loved one or yourself is something that should be dealt with sooner rather than later. Although death is a subject that many people prefer to evade, thinking about the costs that come with funeral services is a sensible thing to do. After all, funeral costs only keep on rising every year.
That is why making plans should not only be reserved for future life, but also for the unexpected to save your family from the financial stress that comes with an untimely demise.
How Do Funeral Plans Work?
The costs of funeral services are rising each year, and this only proves that death is never cheap. Getting pre-planning services for the funeral of an expat or a loved one abroad, for instance, allows you to pay according to today’s prices. This is technically a price freeze that you should take advantage of.
Funeral planning might be a morbid topic for investment, but more people are now recognizing its importance for the future. There are many pre-paid funeral plans available these days that you can pay in either a discounted lump sum amount or small monthly instalments, which can last from one to 30 years.
There is virtually no disadvantage to paying in instalment for 12 months, but if you make it longer than a year, the total cost could increase by around 10 to 15%. Usually, the monthly premiums are placed in a trust fund or invested in an insurance policy, and it will not be used until it is claimed.
What Services Are Included in a Funeral Plan?
Most plans have limited coverage, and they do not pay for everything required in a funeral service. The guarantees usually include a coffin, care of the body, hearse and minister for the ceremony. Extra items such as flowers and catering service may not be covered.
Burial and cremation costs also vary widely across pre-paid funeral plan providers, so you will need to really check what you will be paying for in a specific plan. There are also other inclusions that you can seek, such as burial plots, headstones and even expat funeral coverage. Cremations are cheaper than a traditional burial and are more likely to be covered by the funeral plan.
It is best to choose a plan that pays for the specifics, rather than going for one that requires only a fixed payment. You should understand that as the cost of funeral services continues to increase, fixed contributions might not grow with the rising prices.
Is an Expat Funeral Plan Different?
Expat funeral plans are basically the same as other funeral plans except that you need to decide on two things. One is whether the funeral will be done in the country of death or back in the deceased’s home country.
Providers can make plans for either of these scenarios. Having their assistance is often well worth it, as there can be lots of legal formalities involved when a person dies abroad. The provider will help the family deal with paperwork and other legalities involved.