Pros and Cons of Prepaid Funeral Plans

woman-standing beside coffine

Its often said that “Birth, Marriage & Death are Made in Heaven”. We have no control over it, what if you can plan in advance, how people would remember you post you leave the world. Let’s explore the pros & cons of Prepaid Funeral Plans in detail.


As human beings, we tend to plan for things in advance – whether it’s monthly budget planning or college fund allocation. In fact, most individuals put aside at least half a portion of their income for any sudden expense arising out due to an emergency. One of the common reasons is the uncertainty of life and possible financial burden in future. The life of an average human is limited and uncertain. You never know how things can take a sudden turn, leaving your family to deal with the harsh reality. In such cases, it is ideal to plan for your funeral and funeral costs in advance. But, can a funeral be prepaid? To answer your question – Yes!

Prepaid funeral plans allow you to plan all the funeral expenses well in advance so that your family doesn’t have to go through any added emotional trauma during such challenging times. When you consider a prepaid funeral arrangement, it can also allow you to save money and spend only on the specific type of service required. However, not all prepaid funeral contracts or funeral bonds will be financially suitable for everyone. Additionally, the prepaid memorial service or funeral service can differ from one funeral home to another.

To help you choose the most suitable option and finalise this critical decision, we have highlighted the pros and cons of prepaid funeral plans. But first, let’s understand:

The Difference Between Final Expense Insurance and Prepaid Funeral Plans

Final expense insurance and prepaid funeral plans both allow you to plan the cost of your funeral. However, there are a few differences that you will understand here in detail:

Prepaid Funeral Plan

With prepaid funeral plans, you can not only pay for your funeral or cremation in advance but can also choose your own casket, type of flowers, kind of celebration, and more. You can add more related services to your prepaid funeral plan based on your preference. Prepaid funeral plans also include final wishes and fund allocation, paid directly to the funeral home. Besides, it also provides complete protection against inflation. Also, most funeral directors offer various funeral/burial/cremation services and can also provide obligation-free advice on your prepaid funeral.

Final Expense Insurance

Final expense insurance allows you to pay for the services required, without any specific addition. Those who don’t want to choose anything but still want to ensure zero financial burdens to their family in case of death can use this funeral insurance. The funeral and burial costs will be paid directly to your beneficiary. Unlike prepaid funeral plans, there is zero protection against inflation. In this case, your family has to bear the funeral expense out of their pockets and wait for the policy to settle the amount.

Pros and Cons of Prepaid Funeral Plans

Although a funeral bond issued can offer you several benefits, you must not skip the risk involved in the process. Here are the pros and cons of considering a prepaid funeral plan.

Pros of Prepaid Funeral Plan

  • Deciding funeral arrangements on your own, without interference
  • Providing complete protection against inflation. 
  • Reliving your loved one from financial burden and emotional distress
  • Choosing your own cemetery plot

Cons of Prepaid Funeral Plan

  • You may not receive the fund if the funeral home goes out of business.
  • Most prepaid funeral plans vary from one another and are inflexible in terms of different options.
  • You cannot alter anything in your pre-made funeral plans.
  • Prepaid funeral plans can be expensive and unnecessary if your beneficiary will get death benefits through life insurance.

General FAQs

1. What Is the Best Way to Prepay for Your Funeral?

One of the best ways to prepay for your funeral in advance is by paying your chosen local funeral director directly.

2. What Does a Prepaid Funeral Plan Cover?

Prepaid funeral plan covers:

  • Services of a funeral director
  • Transportation to the funeral home
  • Casket or urn
  • Visitation/viewing service
  • Cremation/burial services
  • Catering and others

3. What Happens When You Prepay Your Funeral?

When you prepay for your funeral, you can be rest assured about all the possible funeral or burial costs and allow your loved ones to be more relaxed during such challenging times.

Allow us to guide you through the most critical decisions of your life and help your legacy be etched in the memory of your loved ones forever by calling 1300 62 68 67.



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