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Why Plan Ahead

Why Plan Ahead

There’s a lot that goes into planning a funeral or cremation, but making those arrangements beforehand probably gives you an uncomfortable feeling. PREPLANNING ONLINE gives you time to consider all of your options and make sure that you’re covering all of the necessary details. 

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A prepaid funeral is when you pay in advance for your funeral or cremation expenses. This article will explain how it works and what to consider when thinking about prepaying for funerals.

 

Prepayment vs Regular payment

The main difference between prepaid funerals and paying after death (or normal funeral arrangements) is that with regular payments, the expenses occur after death has occurred, while with prepaid plans they are paid before death occurs; meaning you can take care of them without having to worry about costs later. Prepaid funerals are usually slightly more expensive than regular arrangements simply because there is less risk involved when planning a future event, which means lower fees have to be taken into account by the company offering the service.

 

Prepay Cremation vs Immediate Cremation

One other thing to consider when looking at prepaid cremation is whether you want immediate cremation, or if you would like a memorial service before the cremation occurs. With immediate cremation, the body is taken directly from the place of death to the crematorium, and there is usually no ceremony or gathering beforehand. With prepaid plans, it’s important to make sure that your chosen company offers immediate cremations as an option because not all of them do.

 

There’s a lot that goes into planning a funeral or cremation, and making those arrangements beforehand probably gives you an uncomfortable feeling.

 

The most common reasons why people pre-arrange funerals and cremations are listed below:

 

 1.     More than half of all people in the United States outlive their retirement savings due to nursing home costs.

 

 2.     Funeral and cremation prepaying can protect personal assets through irrevocability. Protected assets cannot be touched for any reason including Medicaid expenses.

 

 3.     Prepayments can be made on a monthly basis and do not have to be paid in full at the time of pre-arrangements.

 

 4.     Funeral Home Services and Merchandise are guaranteed at the current price through a contract. Principal payments earn interest until the time of death.  A Contract states that the funeral home accepts the principal and interest as payment in full at the time of death.

 

 5.     Prepaid funds can be transferred any where in the United Staes from one funeral home to another at the time of death.

 

 

We also offer an option of preplanning online this gives you time to consider all of your options and make sure that you’re covering all of the necessary details.  It allows you to get a file started on your terms and not prepay.

 

If you are thinking about prepaying below are some things for you to consider.

 

Prepaid funeral contracts and Medicaid

 

If you are applying for Medicaid, here are some things to consider:

 

If your assets are more than the asset limit for Medicaid, you may need to reduce ("spend down") some of your assets. You may “spend down” your assets by prepaying your funeral or cremation expenses.   

 

You may spend up to $14,500.00 for an irrevocable funeral contract in Pennsylvania.

 

A prepaid irrevocable funeral contract is not counted as an asset for Medicaid purposes. If you decide to fund a funeral contract and are applying for Medicaid, you will be required to have an irrevocable contract.

 

A prepaid irrevocable funeral contract lets you make your own funeral arrangements in advance and will not count as an asset to Medicaid.

 

You can never cancel an irrevocable funeral contract.  However, you can transfer an irrevocable contract to a different funeral home if you move or do not want to use the services of the original funeral home.

 

Prepaid Funeral Expenses: What You Need To Know

When you see the term pre-pay, it means a type of arrangement where you pay for funeral products and services that you selected when you were preplanning. You will enter into a legal agreement to fund the arrangements. You can make a one-time payment, or monthly or quarterly payments to a third party such as a funeral insurance company over a set period of time.

 

Many people find pre-paid funeral contracts appealing because they lock in the price of the funeral products and services they select. To lock in the price though, you are required to commit to a contract and fund the contract.  Even though one of the main goals is to control the price of these items, not all contracts provide a price guarantee. Make sure you ask if the contract is guaranteed.

 

Prepaid funeral expenses differ from an ordinary funeral arrangement in the sense that prepaid is purchased when you are alive (instead of after your death), with the money going to pay for your funeral. Some people may choose to do this when they want to leave their family with fewer financial worries, or perhaps just because it is more convenient than paying out of pocket for a funeral. Prepaid funerals can come in several forms. For instance, some companies provide pre-need funeral service agreements, where the company will provide your casket and other services for you. Another type of prepaid option comes in the form of burial plots. These allow you to purchase a plot ahead of time so that no matter what happens with land prices, you won't have to worry about being unable to be buried where you want.

 

When considering a prepaid funeral arrangement, there are several things you should keep in mind. First of all, make sure that the company you are dealing with is reputable and has a good track record. You don't want to end up losing your money if something happens to the company. Also, do not purchase a prepaid funeral arrangement until after you have fully researched what type of burial options are available to you. Funeral costs can vary, so your plan may pay for one thing when later on it turns out that something else is more appropriate for your needs.

 

Two popular methods of funding pre-need funeral contracts are funeral insurance or funeral trusts.

  1. FUNERAL INSURANCE: When purchasing funeral insurance, you are placing the funds with a third-party (i.e., an insurance company) who will manage the money, it will accrue interest and it will be paid to your designated provider at the time of your funeral.  This is the type of funding we recommend at Beck Funeral Home.

 

  1. FUNERAL TRUSTS: By establishing a funeral trust are placing your funds in a trust managed by a funeral home. You can run the risk of penalties if you want to transfer it to another funeral home.  We do not endorse this funding at Beck Funeral Home.

 

Prepaid funeral contract may be revocable or irrevocable.

 

  1. REVOCABLE: This means you may cancel the contract and get most of your money back.

 

  1. IRREVOCABLE: This means you cannot cancel the contract, but you may transfer it to another funeral home if you choose.  You can transfer an irrevocable contract to a different funeral home if you move or do not want to use the services of the original funeral home. However, you cannot cancel and get your money back if you buy an irrevocable contract. (This is required by MEDICAID)

First, check out our preplanning checklist to help you consider all your possibilities. Then you can preplan online using our form to create your personalized arrangements or you can schedule a time to meet with our staff to discuss your options and make a plan.



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Get in Touch


Beck Funeral Home & Cremation Service, Inc.

175 N. Main St.
Spring Grove, PA 17362
PHONE: (717) 225-1677

3670 E. Market St,
York, PA 17402
PHONE: (717) 714-6033

 

501 Ridge Ave.,
McSherrystown, PA 17344
PHONE: (717) 637-6945


Please contact us with any question, comments, or inquiries, and we will reply as soon as possible.

 

 
 

Proudly serving the communities in York, Adams, and Lancaster County,

Beck Funeral Home & Cremation Service, Inc.
175 N. Main St.
Spring Grove, PA 17362
Phone: (717) 225-1677

Beck Funeral Home & Cremation Service, Inc.
3670 E Market St.
York, PA 17402
Phone: (717) 714-6033

Murphy-Beck Funeral Home & Cremation Service, Inc.
501 Ridge Ave.,
McSherrystown, PA 17344
Phone: (717) 637-6945

Beck Crematory
205 N. Main St.
Spring Grove, PA 17362


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