When your life on this earth comes to an end, your family and friends are sure to mourn your passing. You can do them a huge favor by taking care of your funeral expenses in advance so they can mourn in peace without the financial stress that unexpected funeral expenses can bring. There are several things that you can do to ensure that paying funeral expenses will be fully taken care of in life-- consider one of the following:
One simple way to fund your funeral expenses is to open up a savings account and continue to deposit money until there is enough in the account to fund your final expenses. The one downside to directly placing money into a savings account is the fact that the money will not grow much since interest rates on a savings account are typically low, but you can rest assured that your family will have the money needed to pay for your funeral. If you decide to open a dedicated savings account for funeral expenses, make sure you name a family member as the beneficiary, and include the information in your estate planning documents.
Purchasing an insurance policy is another way to make sure that your funeral is already funded while you are still alive. You can choose to either purchase a life insurance policy that can be used to pay funeral expenses, or buy a funeral insurance policy that is specifically designed to cover funeral expenses. With a funeral insurance policy you can often designate how much money is spent on each aspect of your funeral, or you may opt to have your family paid in a lump sum. One of the advantages of insurance policies for funeral expenses is the fact that they typically are not considered a part of your estate and don't need to go through the probate process, so your family can gain access to the money faster.
Pay the Funeral Home Directly
Some funeral homes now have the option to allow you to pay them all funeral costs upfront directly. If you would like, you can work with a funeral director to plan all of the details of your funeral, from the casket and clergy overseeing the service, to burial or cremation. While some people are not comfortable going over each detail of their own funeral, other people are comforted by the fact that all plans are in place and their family does not have to make any hard decisions.