Many watch their parents grow older, and some are passing away. Children of aging parents could face the unpleasant task of last minute planning and subsequently receiving invoices for large funeral and burial expenses.
It is wise to plan your burial ahead—even if you are in great health—by establishing dialogue with everyone concerned. In addition, make sure that you have a will in place that reflects your wishes. Funeral and burial expenses can be expensive. Think over some planning questions now to evaluate your options such as:
• Should the service be in a religious sanctuary? Some people are very committed to their religious affiliation. Often in these cases, the service is held in a sanctuary where the congregation is present.
• What funeral home should be selected? Usually people select one that has been used for other family members over time.
• How do I make arrangements with the funeral director? They are professionals who take care of the many details of the services. Your loved ones will appreciate this preparation.
• Has my burial option been selected? The common burial methods are: earth (and should the plot be near other family members?), cremation, or mausoleum.
• Who shall speak on your behalf at the service? Often your religious leader or someone close to you will say a few words at your service, working with the funeral director.
• Should you request a donation to a charity in lieu of flowers? The immediate family can buy flowers, working with the florist and funeral director. Others might want to donate to a charity of your choice.
• How can you get the best value for services rendered? Each funeral director will have various packages and prices to offer.
• At what location will the after-service (with food, coffee, tea, etc.) be held? Typically, they are held at the home of the deceased or a relative, a religious sanctuary’s social hall, or at the funeral home.
Methods of payment for these expenses. You can prepay your funeral package all at once or by making installments, or you can use life insurance to pay for it later with a tax-free benefit, specifically when needed at death, thus freeing up more cash for retirement. By making these decisions now, the pre-arrangements can save your family a lot of last minute stress and money.
Using life insurance for funeral and burial expenses. The timing of a life insurance benefit payouts is specifically designed to cover cash needs at death, one of which includes final expenses. Consider purchasing a life insurance policy to cover any amounts in excess of your pre-arranged funeral expenses. If it amounts to $50,000, buy a permanent policy for that amount (such as whole life, or term-to-age100).
Life Insurance for parents’ funeral expense. Often children will work to share the premium with siblings for a life insurance policy on the lives of one or both parents to cover their last expenses. This is preferred to the children needing to come up with the cash all at once. Additionally, it allows all the children paying the premium together, to help mom and/or dad. Life insurance works to solve these problems, while creating new cash right when it is needed.