Why do we wait to check items off our bucket list like taking a trip to Hawaii, or learning to play an instrument? There’s no better time than the present for living life to the fullest, and it often starts by taking that first step.There are other important decisions you’re better off doing sooner than later, too. Because funerals costs continue to rise, preplanning will save you money by completing the process earlier. Otherwise, your family may have to pay funeral costs at significantly higher rates than they are today.
If you’ve thought about preplanning, you shouldn’t wait. Your family and your wallet will thank you.
1. Lock In Today’s Rates
There’s no “right” age to preplan your funeral, but you’ll save money by completing it earlier. Prices continue to rise – doubling every 12–15 years. A preplanning policy locks in today’s rates. And once you pay it off, there’s nothing more to think about.
For example, the average funeral cost $7,181 in 2014. By the year 2050, that same funeral would cost more than $41,500.
Based on the chart above, consider the following scenarios
• Fifty-year-olds who preplanned in 2014 would save $4,516 by not waiting until they turn 60, and would save $11,872 by not waiting until they are 70.
• Forty-year-olds who preplan in 2024 would pay $11,697 instead of $31,036 when they turn 60—a savings of $19,339!
We’re living longer, so even if you’re in your 80s, preplanning can still save your family money.
2. Protect Your Family
Even though life expectancy is increasing, none of us know how much time we have. You can never be too prepared. Make sure your family isn’t hit with a sudden funeral bill while they’re grieving.
In most cases, funeral policies are completely covered, which leaves no remaining bills for loved ones. Even if you die before the final payment, your family won’t responsible for the balance.
3. Stop Worrying
Some people delay preplanning because they worry about the impact of future events. Common worries include the effects of moving or adding another bill. These are valid concerns. But, your advisor will work with you on a plan in your comfort level.
Most prepaid funeral policies are transferable. This means if you move to a neighboring city or across several states, you can take your policy with you.
Most funeral homes offer flexible payment plans to help it fit into your specific budget. Pay off the expense over 5, 10 or even 15 years.
Once you complete your funeral preplanning, you don’t have to think about it again. You can rest assured that your family won’t have to worry about paying for your final expenses—and you can get back to that bucket list.
Download Our Free Funeral Arrangements Guide
Saving money is just one of the financial benefits of preplanning your funeral. Our new guide offers valuable insight into:
• Why more people are preplanning their funerals.
• Why a preplanned funeral policy can help make you eligible for Ohio Medicaid.
• How funeral policies differ from life insurance coverage.
Download our free Seniors Guide to Funeral Arrangements: How Preplanning Can Save Time, Money and Worry. Click on the button below.
Image Credit: Ken Wilcox via Flickr