According to our records, in 1925 this was the average funeral expense including casket, funeral director services, cemetery expense and flowers!

In the past few decades, we have witnessed inflation rates from low single digits to as high as 18%. If inflation would average about 6% per year, look at the impact on future costs!

Example:

You cannot avoid final expenses, but you CAN avoid the impact of inflation. Protect your family and estate with a plan that provides a guaranteed inflation-proof price at today's lower cost.

Prepaying or prefunding helps to ensure that the financial responsibility for funeral costs are not placed on your family members. Completing this in advance relieves survivors from paying these costs. With our family, you can save money by purchasing a price guaranteed contract that locks the funeral services and merchandise costs at today’s rates, eliminating the effects of inflation. Prepayment may also help you qualify for Medicaid/SSI benefits at an earlier time.


There are also several financial benefits to pre-funding a funeral: Guaranteed Funeral Plan
With a guaranteed funeral plan, the funeral home guarantees to provide the services, merchandise and facilities you selected for the amount of money in your account. The guaranteed funeral is not affected by future price increases since the funeral home accepts the principal and interest as payment-in-full. Your estate will not have to pay anything extra for those items that are guaranteed. In order for a funeral plan to be guaranteed, the account must be paid in full at the time of setting up your prefunded account and the interest must remain in the account until death occurs. A guaranteed funeral will not include certain items, such as cemetery costs, crematory fees, newspaper notices, certified copies of death certificates, clergy fees, motorcycle escorts, hairdresser, flowers, monument lettering, etc. These items are third-party, cash advances which the funeral home has no control over.

Non-Guaranteed Funeral Plan
With a non-guaranteed funeral plan, the funeral home provides the services, merchandise and facilities you selected, at the rates being charged at the time of your funeral. The principal and interest of your account will be applied to the funeral home’s total charges. If this amount does not cover the expenses, your survivors will be charged the difference. If the amount in your preneed account is greater than the funeral costs, the excess money will be refunded to your estate or survivors (with a Revocable Trust), or to the county (with an Irrevocable Trust).

Revocable Trust
Revocable contracts allow the purchaser to cancel a contract and withdraw the trust principal and any accrued interest at any time.

Irrevocable Trust
You must establish an irrevocable agreement if you are applying for Medicaid, or if you are applying for supplemental Social Security benefits. These are the only instances for which an irrevocable preneed agreement may be established. The moneys paid to fund these agreements may not be refunded to the purchaser; only to the county.

What happens to the money I prepay to the funeral home?
The funeral home must deposit the funds within 10 days in an interest-bearing account or a government-backed investment. Your monies are fully FDIC insured.

How will I know that the money has been deposited?
The funeral home will notify you where your money has been deposited within 30 days of the deposit. Also, the location and amount of interest earned will appear on the IRS form 1099-INT (or equivalent) sent to you in January of each year. The funeral home can also, at any time advise you of the total value of your account, including principal and interest.

Can I get my money back if I change my mind?
If you established a revocable trust, you can withdraw the principal and the accrued interest at any time. However, if you established an irrevocable trust you cannot withdraw any principal or interest; it must be refunded to the county.