The January Edition of the AARP Magazine features an interesting article about pre-funding a funeral and it worth every minute of your time to read (you can read the full AARP article here).

Although it was full of a lot of accurate and helpful information, there are a few additional points which should be referenced. The concept of pre-paying for funeral expenses was not started by American money hungry capitalist pigs in the 1930’s. The concept of pre-paying for all social classes actually began in the Middle-Ages when Burial Clubs were formed and members would contribute funds for shared services such as an Officiant, candles, equipment and supplies which could be used over and over. Members also attended each others funerals.

So although the concept of pre-paying is not new, the ways in which businesses fleece money from people is ever changing; and that is why the most important lesson when pre-paying a funeral is “Buyer Beware”.

There is a common misconception that people have about pre-planning that the article touched upon didn’t explain fully. When you purchase a funeral plan there are certain items that you can pay for in advance and certain items that you cannot pay for in advance.

Those items not paid for in advance are termed “Cash Advance Items.” Those are items that the Mortuary incurs on your behalf for your convenience and they make no money from. A few examples can be death certificates, clergy honorariums, and cemetery charges. Most funeral homes will incur these charges on your behalf so that you can write one check to them after the death has occurred, and then they will pay the State for the certified death certificates, they will pay the clergy directly for you, they will pay the cemetery directly for you.

Cash advance items are listed in a separate contract once the death occurs. But the family thinks, “I already paid for my funeral, why do I have to pay for these charges too?” Almost every family will have some type of cash advance item to pay for when the death occurs. Find out from the funeral home you purchased your pre-need from which items they consider cash advance items that you will be responsible for when the actual death occurs.

Pre-funding a funeral is simply a choice that is good for some for several reasons and doesn’t make sense for others for other reasons. In an upcoming Helping You Through blog we will explore some of those reasons for and against, in greater detail.