Prearranged Funeral Planning as a Financial Tool
Prearranged funeral planning is, in itself, a financial planning tool. Whether it's to avoid leaving any issues upon one's death or the desire to personally arrange the details of one’s final rest, there are many reasons that motivate prearrangement.
Prearranged funeral planning is a contract that outlines the main elements of your funeral. The contract is governed by strict legislation that requires 90% of the funds collected to be placed in a trust. Moreover, the funeral company can only access the surplus from the Consumer Price Index (CPI) when it comes to interest income. Legal measures have been put in place to ensure that the arrangement remains a secure investment. The contract locks in prices at the rates listed on the regular price list. Regardless of the number of years between the signing of the contract and the death, the prices will remain the same.
Among the options available when it comes to setting aside money to cover funeral costs, prearranged funeral planning remains one of the best, especially given the fact that life expectancy continues to increase. Paying in advance for funeral expenses often eliminates the need to maintain an expensive insurance policy. Since it is possible to spread the costs of the prearranged funeral contract over 60 months without interest, many will choose this option over taking out a term life insurance policy.
Other Motivations
The funeral industry is evolving. Prearranged funeral planning allows you to determine how things will unfold, according to your wishes. It allows you to specify details about the type of ceremony, the duration of visitation, if any, and your preferences regarding the disposition of your body.
The loss of a loved one is always a highly emotional event. Some expenses might therefore be made in a less rational manner than you would have wished. Prearranged funeral planning is typically done without this emotional aspect. Everything is considered, weighed, and aligned with your financial means.
A Modern Advantage!
Modern life being what it is, there is no guarantee that you will live in the same city at the time of your death. When you deal with a funeral cooperative, you ensure that your contract will be valid throughout Quebec, with more than 100 service points. This reciprocity agreement becomes a significant advantage, unique to Quebec.
If you no longer live in the place where you arranged your prearranged funeral plan, a simple phone call at the time of death is all it takes to transfer the contract to a cooperative in that region, without penalties or additional fees.
A Unique Feature of Cooperatives
Prearranged funeral planning covers the essential expenses associated with a funeral. These include transportation of the body, administrative fees, cremation fees, embalming, the casket, and the urn (depending on your choice of disposition). You can also plan for the rental costs of visitation rooms, the chapel, and the reception hall. However, it is not possible to pay for flowers, the buffet, bookmarks, etc. This is where the cooperative can offer a unique product: preferred shares.
As a member, you can purchase preferred shares. Issued in increments of $100, they do not bear interest and are refundable upon death. This is an original way to leave an amount of money to those responsible for organizing your funeral to cover various expenses not included in your prearranged funeral plan.
Seek Information and Consult
The funeral planning advisors at the Funeral Cooperative of Estrie can meet with you, with no obligation on your part, at our offices or at your home. This will provide you with everything you need to make an informed decision about a contract of great importance.
Anne-Sophie Audet and Louis-Philippe Perron will answer all your questions.
Feel free to make a request now!
819 565-7646