Pre-need Funeral Planning
Every death presents a challenge. Many elect to meet these challenges ahead of time by pre-planning.
Those who do pre-plan secure peace of mind for themselves and their loved ones. Pre-planning a funeral serves three important purposes.
First, it allows you to determine what type of funeral service and disposition you want. You have time to think about the details and to discuss them with your loved ones.
Secondly, pre-planning a funeral spares your survivors the burden of making last minute decisions. Death brings with it grief, confusion, uncertainty and emotional upheaval. Under these circumstances, it becomes extremely difficult for survivors to make the best decisions.
Finally, the pre-selection of a funeral home eliminates efforts to search for one at the last minute. When pre-planning a funeral, your funeral director is going to be the most helpful source of information. He will discuss the options, services and costs, as well as help you to personalize your funeral. He will show you the facilities and merchandise available.
A traditional funeral, including the ceremony, transportation of the remains, a casket and the services provided by the funeral director, usually costs about $6,000. This does not include a cemetery lot, head stone, mausoleum space, the cost of opening and closing a grave, flowers, or obituary notices. For an in-ground burial, add one or two thousand dollars to this price. The funeral director will give you a written statement of what is and what is not included in the pre-need arrangement.
You may prepay for funeral goods and services in several ways. Three of the most commonly used methods are payment from personal accounts, payment through a trust and payment from a life insurance benefit.
Prepayment from a Personal Account
This is the easiest method. A single payment is made for the cost of the pre-selected merchandise and services.
Payment from a Trust
This method requires prepayment of the funeral costs to the funeral home. The funeral director will place all money into a trust account at a bank. Monthly payments of no specified amount may be made. The beneficiary of this trust, in the amount of the pre-selected merchandise and services, will be the funeral home and they will receive the funds upon your or your loved one’s death.
Payment through a Life Insurance Policy
This method is usually funded through an existing life insurance policy. The benefits are either assigned to the funeral home or the funeral home is named as the beneficiary. Benefits of the policy, in the amount of the pre-selected merchandise and services, are paid to the funeral home upon you or your loved one’s death.
Upon completing a pre-need contract, the state of North Carolina requires that a fee of $20 be paid for the filing of the contract with the North Carolina Board of Funeral Service.