'...in this world, nothing is certain except death and taxes.' The Benjamin Franklin quote applies to this day. Nobody can escape death, which is often accompanied by funeral expenses. Just like any other significant expense, saving for your funeral arrangement is crucial since it spares your loved ones from financial stress while grieving. While there are different ways to save for future funeral arrangements, a pre-paid funeral plan is arguably the best option. You pay monthly instalments to the funeral home of your choice over an agreed period. Notably, some people have never heard about pre-paid funeral arrangements. Here are crucial facts about such plans.
If you are familiar with life insurance covers, you must know that the policies are tax-deductible. It might explain why most people lean towards life insurance plans. Well, if you are wondering whether a pre-paid funeral plan is tax-deductible, the answer is a resounding yes. Generally, the ATO excludes funeral expenses from tax deductibles, which might explain why most people stay away from pre-paid funeral plans. Most importantly, consult a tax accountant before enrolling in a pre-paid funeral plan.
Different from Funeral Insurance
Contrary to what some people think, funeral insurance and pre-paid funeral plans are entirely different. When you take a funeral insurance policy, you pay premiums to an insurance company. When you pass on, the assigned beneficiary can use the payout on different expenses other than your funeral arrangement. For instance, a beneficiary can use a funeral insurance payout to settle medical bills or credit card debts. On the other hand, a pre-paid funeral plan is not that flexible. Since you pay monthly instalments directly to a funeral home, no other person or party can access the money. Thus, you can rest assured that every cent of the final payout will be used towards your funeral arrangements.
Supports Customisable Funerals
Long gone are the days when you could not use the words 'funeral' and 'unique' in the same sentence. Today, you can customise a funeral however you want, and pre-paid funeral plans make it possible. All you have to do is sit down with a funeral director and draw a plan of how you want your funeral to look like. For instance, you can include an indigenous band, a unique casket and specific types of flowers. Once the list is ready, a funeral director calculates the total cost, the basis of your pre-paid funeral plan.
For more information on pre-paid funerals, contact a local funeral director.