Personal Finance
Why You Should Plan Your Funeral?
By Jason Cunningham
Jan 1, 2009 - 11:25:46 AM

One day, each person on earth will die. It is a sad truth that none of us can avoid. Fortunately, while we are still alive and well, we have the ability to make funeral arrangements and to create a will, at minimum.

Become Aware of Your Morality

Before the age of thirty, most people live life as if they are immortal. Soon afterwards, they must start saying goodbye to aunts and uncles, older cousins, and even parents. At this point, the reality of their morality begins to awaken inside of them. Their death may not come for another 50 to 60 years, but the possibility of death, one day, is no longer a percentage less than 100%. To say it bluntly, we all have to die, someday.

Create a Check List of What Needs to Be Done

Planning funeral arrangements is no easy task. Therefore, people need to create a checklist of what needs to be done. Listed below is an example checklist that some people already use:

· Create a will and update it when changes need to be made

· Buy a life insurance policy if you do not have enough liquid assets to cover funeral costs or to cover future court , administrative, and other costs to your estate

• Choose between a casket or cremation
• Buy a cemetery plot, vault, and tombstone
• Leave specific funeral instructions (e.g. location of the service and the order of the service)
• Organize paperwork (e.g. business, car, home and personal loans, banks, brokerage, and retirement accounts, and titles for your home and car)

Where Should I Go to Complete My Checklist?

Most people hire a lawyer to create a will. Some people in their twenties have wills; as a result, there is no age limit to have a will created for you. If you decide not to hire a lawyer and wish to create your own will, be aware that some states have specific rules, regarding what constitutes a legal will. But, if you have any doubts, you need to contact your state’s probate office for more information.

Many people buy life insurance, so that their family can use the life insurance proceeds to pay for funeral expenses. In most cases, individuals purchase a life insurance policy from their insurance agent. Sometimes, people do buy life insurance from a funeral home director, who is licensed to sell burial life insurance, but you should consult a captive or independent insurance agent first, especially if you are in decent health, because the premium amount of a life insurance policy purchased from a funeral home can be more expensive than a State Farm or MetLife life insurance policy.

Most people purchase their caskets at a funeral home. Depending on your preference in style, you can spend $1,000 to $11,000 for a casket. On the other hand, you may decide to be cremated. On average, a cremation usually costs less than $400; however, you need to verify the price range in your area. In addition, a funeral home can pre-plan your funeral service, so that your family is not left with this burden, upon your passing.

A cemetery plot, headstone and vault can be purchased through a cemetery. The price of the cemetery plot will depend on the name recognition of the cemetery and the location of the plot within the cemetery. Some land in the cemetery is better than others, and there is often a cost premium for choosing good land. Headstones also vary in price, yet it depends on what you fancy!

You might call on the services of a financial planner or accountant to help organize you paperwork. You should have your will and trust paperwork, titles to your home and car, retirement, bank, and brokerage account information in a safe place, such as a bank vault. Without these documents, your family and the executor of your estate may have a hard time tracking down this paperwork after your death.

Plan Now and Pay or Pay More Later

There are two main reasons to plan your funeral now:

• Lock in your funeral costs now (casket, service, cemetery plot, etc)
• Make it easier for your family and executor to settle your estate (e.g. wills, retirements accounts, and deeds in one place)

The cost of funerals probably will not decrease. The rise in future funeral costs includes everything from the price of the casket to the cost of the cemetery plot. But, you have the ability to lock in your future funeral costs, in today’s dollars, by making funeral arrangements, today.