Funerals are known for being not the happiest of events. However, the unfortunate reality is that, at some point, each individual will most likely have to deal with the passing of a relative, friends, or loved one. Therefore, financial planning for the funeral process is so important. Not only does it cut back on stress, but it also eliminates financial burdens or unexpected emergencies which can make the grieving process even more worse and traumatic. This is why financial preparation for a funeral is absolutely paramount. Preventive maintenance is always better than having to do damage control at the very last minute.
Pay for the Funeral Ahead of Time
Reports from U.S. News affirm the
shockingly low amount of people
who simply pay for their funerals before they die. Nobody likes to think of death, but the reality is that all of us will die at one point or another. However, there are various options for those who have the financial means to pay for their funerals before their passing. Many individuals have paid for their funerals via insurance policies, 1035 exchanges, and trusts with monthly payment plans. Regardless, there are various options for individuals who wish to cover all expenses which will be associated with their funerals.
Create A New Personal Savings Account
Not everyone can or wants to put aside hundreds of dollars per month into a payment plan for their forthcoming funeral. Thankfully, there are other alternatives regarding financial preparation for a funeral. One of the simplest ones includes simply creating a new personal savings account and putting aside an agreeable amount of funds on a consistent basis. The account can also be set up with a "payable-on-death" trusted beneficiary. This ensures that the funds which have been put aside are actually used for their funeral and not some other purpose or expense.
Purchase Life Insurance/Set Up Financial Power-of-Attorney
Additional effective means of financially preparing for a funeral include purchasing life insurance and setting up a financial power-of-attorney to make decisions regarding money after one's passing. Not only does this avoid any confusions or uncertainties regarding who is in charge, but life insurance moreover
comes in handy
if the deceased has certain debts which they failed to pay off before their passing, affirms USA Today. Obviously, these are matters that nobody likes to think of, but they are very important and worth planning for. Effective plans are much easier to make ahead of time, versus in the middle of the grieving process.
People who have further questions about preparing for their funerals can also seek out the aid or advice of a financial adviser.
A Final Word
At the end of the day, each person owes it to themselves and the ones who care for them to do as much planning for their funeral as they possibly can. Not only does this make matters easier for all parties involved, especially during the grieving process, but it furthermore shows a degree of respect to those who are closest to us.
Authored by Gabrielle Seunagal