My parents met with someone today about a pre-paid funeral. (They did this for my grandmother too). It's basically an insurance policy that pays for the funeral. They want $10,000 for the whole funeral for both of them, including casket, cremation (legally here you have to be in a casket to be cremated).

They wanted my advice. I'm not sure what to think.

It seems like a good deal. When my friend died, it was $11,000 for a basic (as cheap as they could go) funeral. This would be a guaranteed price of $5000 each. (They already have their burial site and headstone carved except for the final date).

Anyone have any experience with this?

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i think pre paying and having all the funeral arrangments before you die is a wonderful gift to give your family.. in the next couple years we plan on buying out plots at the cemetary in a step to ease the burden of doing that when we are gone...

i would just make sure its a reputible place.. my dh's grandpa passed away 2 years ago and it was 15,000. so definately worth looking into.

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'The will of God will never take you where the
Grace of God will not protect you.'

HAVE A BOOTIFUL HALLOWEEN

Good point. It's the place we've used for funerals in our family for many years so they feel good about the place. They also did an amazing job with my grandma's funeral and my mom got some interest back that the policy made in the 10 years they had it for before my grandma died.

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So long as it's a reputable firm it's a great thing to do and a wonderful thing for them to do to make it easier on the kids when they pass. I hated having to go make plans when my mom and my FIL died. You are so emotionaly, and you just want to open the wallet to buy the best of everything. I really had to reel my MIL and SIL back because they wanted to spend ridiculous amounts of money on stupid things relating to the funeral since they were in such shock. Having it prepaid will avoid all that sort of stuff.

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I think its a great idea. My parents had this for my grandmothers and now for themselves. Hope it takes a million years before they need it though

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You must be the change you want to see in the world ~ Gandhi

I think it can be a money saver -- if they die soon, however if you invest the same amount of money and live MANY more years its actually a money looser. (Assuming its the same "level" of funeral service is offered.) This is something most people don't even think about. I do caution people about going with a funeral home that may no longer be in business or could change ownership in the future and make their pre-payment a lost payment.

It is a gamble. The money that you pay now if invested wouldn't return enough to pay for the funeral in the future. I think for older people it is a smarter decision. For me, I would have hopefully fifty years to invest the money before I died. For my parents it would be maybe 25 or 30 years, for my grandfather maybe 5 or 10 at the most. Look at what the average rate of return is for an investment and then you have your answer on if its a good deal. (However funeral costs do rise, but not astronomically so.)

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Grace

Wife to Stoney

Mommy of Sarah (8.5), Hannah (7), and John(4.5)

I just lost my Daddy 10 days ago...I can tell you first hand that this was the best thing he did to help us. You are so full of emotion when that time comes that it is nice to go into the funeral home and see everything done. He picked out his casket, his music, his clothes were already there. He even picked out his own menu for the brunch after and wrote his obituary. It was still the hardest thing I have ever gone through in my life - but with him doing this - it made is so much easier. His funeral was 15,000 not including his plot and headstone which he had also prepaid and taken care of for us. My mom has all hers taken care of too....

My mother-in-law and my grandparents both have their funerals all paid for and figured out. I think it is a great thing to do. Takes a lot of stress off already grieving family members.

I think its a great idea. Not only does it relieve family members of financial worry but it also "locks in" the current rate for funerals.

I'm so sorry to hear about losing your Dad. So sad.

Thanks ladies for all your advice. I was worried about the whole 'insurance' part of it and wondered about whether it was a good financial decision but it sounds like it's better that they make those decisions now without all the emotions involved and that way they can plan what they'd like as well.

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