Preplanning your funeral ensures that your final wishes are honored, and it can relieve your loved ones of difficult decisions during a stressful time. But before you sign any contract, it’s essential to review it thoroughly. Here’s a guide to help you evaluate a funeral preplanning contract with confidence.
1. Understand What’s Included in the Package
Start by reviewing all the services and products outlined in the contract. Funeral preplanning often covers basic services, like:
- Professional services (e.g., funeral director fees)
- Body preparation (embalming, makeup, etc.)
- Transportation (from place of death, to the cemetery or crematorium)
- Ceremony (funeral service, memorial, or graveside)
- Casket or urn
- Burial plot or cremation niche
Ensure that all services you expect are clearly listed and any additional services you might need are mentioned.
2. Know the Payment Terms
Funeral preplanning often involves prepaying for services or setting up a payment plan. Carefully examine the payment terms to understand:
- Total cost: What is the full cost of the contract, including taxes and fees?
- Payment options: Are you paying in full or on a payment plan? What happens if payments are late or missed?
- Refund policy: If you change your mind, can you get a refund? Are there cancellation fees?
3. Check for Locked-in Prices
One of the benefits of preplanning is locking in today’s prices to avoid rising funeral costs. Confirm whether the contract guarantees prices at the current rate, or if there are circumstances that could lead to extra charges later, such as inflation or changes in state laws.
4. Examine the Portability of the Plan
If you relocate to a different city or state, will the contract be honored by another funeral home? Portability can be a key factor in deciding whether the plan suits your long-term needs. If moving is a possibility, ask about any transfer fees or options for using the plan in a different location.
5. Understand What’s Not Included
It’s equally important to be aware of what’s not included in the contract. For instance, common exclusions might include:
- Cemetery costs (e.g., opening and closing the grave)
- Flowers, catering, or memorial materials
- Additional transportation costs (e.g., for long-distance transport)
Make sure you’re aware of any additional expenses so you and your family are prepared.
6. Clarify Your Rights and Responsibilities
The contract should outline your rights as the purchaser and the responsibilities of the funeral home. Be sure to:
- Read the fine print: Understand the funeral home’s obligations to you, such as when and how services will be delivered.
- Ask about future changes: What happens if the funeral home goes out of business or ownership changes? Are they required to transfer your preplanning funds or services to another provider?
7. Review the Disposition of Funds
When you prepay for a funeral, your money is typically placed in a trust or life insurance policy. Make sure the contract explains:
- Where your money is held: Is it in a trust or insurance plan? What are the protections for you?
- How the money is used: Will interest from the trust or policy cover future inflation? Who can access the funds if changes occur?
8. Seek Legal or Professional Advice
While many funeral contracts are straightforward, some may contain legal jargon or provisions that are difficult to understand. Don’t hesitate to consult an attorney or a financial planner to review the document with you, especially if you have questions about your rights or the terms involved.
9. Consider Your Family’s Needs
Preplanning is designed to make things easier for your loved ones, so ensure the contract aligns with your family’s preferences and traditions. Share the details with a trusted family member so they understand your wishes and know what to expect when the time comes.
10. Get Everything in Writing
Lastly, any promises made by the funeral home, such as price guarantees or specific services, should be in writing. Verbal agreements are not legally binding, so make sure the contract includes all the details and commitments.
