Pre-Paid Funeral Plans – Buying Tips

By Jim Herperger on November 15th, 2010

Pre-paid funeral plans and funeral pre-arrangements are an important part of an Estate Plan. We believe they make far more sense than placing some vague instructions in your Will. For that reason, we encourage our clients to contact funeral providers and meet with them about pre-arrangement and pre-planning.

Pre-arrangement and pre-planning are two different things. Pre-arrangement simply means that you arrange what you want done when you die; basically, you organize your own funeral. At that point, you do not pay for it. Your Executor will, on your death, make the payment out of your Estate. The advantage of pre-arrangement is that there is no question of what your wishes are. Your family and loved ones have no difficult decisions to make, as you have made all of the decisions for them. A disadvantage of pre-arrangement is the fact that you will not have fixed the cost of certain parts of the funeral going forward.

Pre-paid funeral plans have all the advantages of a pre-arrangement, but with the added advantage of you being able to fix the cost of certain services provided. In any purchase, it is important that you shop around and fully understand what you are buying. It is important that you compare apples to apples and not leave anything to chance. Also, be aware that often one funeral provider will own another storefront funeral provider with much lower prices. Basically, the storefront business is a phone number and a Yellow Page listing created to allow the funeral provider to have two sets of prices. You may think you are dealing with “ABC Discount Cremations” in Kelowna when you are actually dealing with “XYZ Funeral Home” in Penticton. With cremation, does the provider cremate locally or in another city or region; who operates the crematorium?

Due to these inconsistencies, the following are a number of tips when you are purchasing a pre-paid funeral plan:

1. Attend at the funeral home to get your complete cost information along with a complete funeral home price list. The complete funeral home price list is important as it will have a list of additional service items. Funeral homes in British Columbia are required by law to provide a complete price list upon request.
2. Have someone with you to assist you in asking questions.
3. Ask questions. Even if it sounds like a silly question, ask it and get the response that you require.
4. Read the contract before signing – we cannot emphasize this enough. The contract is the key document that will govern the relationship that your family will have with the funeral home. Make sure that there are no misunderstandings, no irregularities in the contract, and there is no vagueness. If you are more comfortable get a photocopy of this contract (front and back) and take it with you to examine it without any pressure.
5. Have the contract itemize the services and merchandise that are pre-paid and confirm that these items are indeed “guaranteed”. Beware of the term “stored” under monuments, urns or cemetery liners, as this means you actually own the item which will be stored at the funeral provider. Basically, you cannot cancel any merchandise that is “stored”.
6. Ask about extras. For example, a funeral home may charge your family extra for the “after hours” pick up of your body on your death. This charge can be between $250.00 – $300.00 over and above what was pre-paid under transfer or removal of deceased from place of death. Obtain, in writing, confirmation that that charge will not apply. You, sadly, will not have the ability to control the instant of death.
7. Ask what the cost will be if there is to be a viewing of the body. Have that cost written down and frozen. Ask what the cost will be for a reception. If the funeral home provides the food for that service, ask what the cost per person will be. Confirm if your family will be obligated to use the funeral home’s catering services or if they may use an outside caterer.
8. If you are buying a casket, obtain a photograph of that casket and particulars of make and manufacturer, and keep it in your file. Make sure that the contract states that the funeral home, on your death, will provide that exact make and model of the casket, and if it is not the same make and model that the casket used will be of no less value, similar in style, design, color and construction as the casket specified. An example would be an oak veneer casket vs. a solid oak casket or a 20 gauge steel casket vs. an 18 gauge casket. Is the casket made in Canada?
9. Ask for and lock in the price for memorial stationary, (guest register, memorial folders and thank-you cards) to be used at the funeral. Specify whether they are to be in black and white or in color.
10. If you want your family to have a service, have the service costs itemized and all aspects of the service adequately described, including the cost of audiovisual equipment, Saturday overtime fees, clergy honorariums, musicians, flowers, use of hearse, etc… will the funeral be at the funeral home or at a church? If at a church, do the service fees cover this?

The main thing to remember is that you are purchasing a service. It is really no different than any other purchase you will make during your life. Ask questions, get it in writing and ensure there are no hidden charges or extras. Make sure there are no “surprises”.

Lastly, don’t forget that if you have a problem with a funeral home or the services they provide, you can contact Consumer Protection B.C., who regulates funeral homes in British Columbia, by phone at: 888-564-9963 or visit their website at: www.consumerprotectionbc.ca.