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Should I Purchase a Funeral Plan Ahead of Time?
April 4, 2008
Sarah Robinson
Q. I have been contacted by a saleperson who encouraged me to buy a prepaid funeral plan. I would like to help out my family by planning ahead, but am unsure how to wisely shop for these services. How can one go about pre-paying for their funeral services?
A. There are many advantages to planning ahead. You preserve you ability to make your own choices. You can comparison shop, and guide your survivors towards businesses you feel are ethical. You can make thoughful decisions, and help with family discussion.
This is a complex topic, and you can learn all about it by reading our pamphlet, "Pre-Paying Your Funeral in Hawaii." You might also find the "Mortuary Price Survey" helpful. It is prepared each year by the volunteers of the Funeral Consumers Alliance of Hawaii.
There is a difference between planning and pre-paying. In Hawaii, prepaid funeral plans are not required to apply all of the funds you pay in towards your funeral expenses. Only 70% is required to be placed in trust or refunded. And, the seller may keep all accrued interest on the account. One alternative to purchasing a prepaid funeral plan is to set the money aside in a "pay on death" account at your own bank, naming a beneficiary of your choice. Write down your wishes for your memorial service, and allow your survivors the gift of being able to create their own memorable and healing experience with these funds.
Read these past Questions & Answers, just click on the title.
