4 Reasons Why You Should Never Prepay For Your Funeral



Paying ahead for your funeral is great in theory, but experts say it may not be the smartest move for your family or your finances. Prepaying your funeral comes with a host of potential problems.

  • Funeral homes can go out of business, taking your money with them.
  • You may not receive a refund if you move or if you cancel or change your plan.
  • Funeral costs may change, leaving your family to pay additional money.
  • If your survivors don’t know you prepaid, they could end up paying again at a different funeral home.

You could buy an insurance policy to cover the cost of the funeral, but the payout may not be as high as the total you paid toward premiums. A pay-on-death account may make more sense. You can set one up at your bank and deposit enough money in it to pay future funeral expenses. The money is still yours until you die. After that, it will go directly to your beneficiary. If you wish, you can even designate the funeral home as the beneficiary of this account.

Whatever you choose to do, let a trusted family member know your plans.

By the way, most people automatically turn to a funeral director to handle the details of their loved one’s service, but you don’t have to.  Check out page 119 of The Fixed Income Answer Book for Seniors for more ways to save money on funeral expenses.


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  • Dena Garner