Why You Should Plan Ahead: A Primer on Prepaid Funeral Plans

Prepaid funeral plans can help Southern California families during a difficult time, simplifying the cremation and burial process and potentially saving them money. This article summarizes what’s involved.

Table of Contents

• Introduction
• What is a Prepaid Funeral Plan, and What are the Benefits?
• What Does a Prepaid Funeral Plan Include?
• Questions to Ask When Arranging Prepaid Funeral Plans
• How Do You Know Your Money Will Be Safe?
• Preplanning vs Insurance vs a Payable on Death Account
• Opal Can Guide a Smooth Insurance or Preplanning Process
• FAQs
• Additional Resources

Key Takeaways

• Preplanning gives family members one less thing to worry about after a loved one dies, minimizing stress and allowing them to focus on healing.
• The process can also help you plan your memorial and save money by locking in today’s prices and giving you time to shop around for the best provider.
• When preplanning, you will need to decide between cremation and burial, choose the best provider, and consider your memorial options.
• Insurance offers similar benefits, allowing you to set aside money to pay for your death, but there are downsides to consider.

Introduction

Making funeral arrangements after a loved one dies can be overwhelming for family and friends who are in shock and grieving. It puts pressure on family members to make the right decision. A rushed process can also lead families to overpay, as they may not have time to weigh their options.

Preplanning a funeral or purchasing a prepaid plan alleviates the burden of making tough decisions on a moment’s notice. It also gives family and friends the space to spend time with each other rather than with a funeral director.

What is a Prepaid Funeral Plan and What Are the Benefits?

A prepaid plan is just how it sounds—you are preparing and rendering payment for services ahead of time. When you enter a prepaid agreement, the funeral home will set aside the money you pay today to plan for funeral services later on.

Prepaid funerals are a great option for families in Los Angeles and beyond. Here are some reasons why preplanning is worthy of consideration:

• Less to Worry About: When you have everything set up ahead of time, your family won’t have to worry about anything when the time comes. They can instead spend time honoring a life well lived and taking comfort in each other.
• It’s Your Choice: Families who experience death are often unclear about what the deceased wanted as their final wishes. With preplanning, there is no guesswork as the deceased’s wishes are made known through advanced preparations.

• It Saves You Money: Preplanning saves money by locking in today’s prices, so you don’t need to worry about the cost of cremation increasing with inflation.
• It Allows You to Shop Around: Another financial benefit is that preplanning allows you to shop around for the provider that offers the best value. It reduces the risk of providers charging more because they know families are emotional and in a rush to get cremation taken care of.

“Preplanning isn’t about death-it’s about protecting the people you love. It gives families clarity, comfort, and peace of mind.”

Celena DiLullo, president of Palm Mortuaries, from the article Planning Ahead: Why Prepaid Funeral Arrangements Matter

What Do Prepaid Funeral Plans Include

This chart shows what you may be purchasing and how much to budget for when making prepaid funeral plans. It also shows what Opal’s all-inclusive direct cremation package offers:

Questions to Ask When Arranging Prepaid Funeral Arrangements

Once you decide to go the prepaid plan route, you have other important decisions to make. Here are a few things to consider as you start preparing:

Should You Choose Cremation or Burial?

Cremation is becoming a more popular option in modern times because:

• It’s more affordable: According to Quartz, the median price of a funeral burial is $8,300, while direct cremation costs between $1,100 and $2,200.
• Eco-Friendly: Cremation produces fewer emissions and uses fewer natural resources than burials, making it an eco-friendly choice.
• Flexibility: With burial, a somber ceremony is held, and the body stays in the ground. Cremation opens up various celebration-of-life options, including sea scatterings, cremation diamonds, parting stones, cremation fireworks, and more.
• Simplicity: With direct cremation, planning is straightforward. You can focus on the process and plan services for a later date.
• Portability: When a death occurs in another state, family members need to fly in for the funeral and to visit the grave site. With cremation, ashes can be divided and sent anywhere in the world, allowing people to connect with their loved ones at their leisure.

While cremation is becoming a favorable choice, some prefer burial for religious reasons or for the comfort of a grave to visit. However, most are moving away from this old-world thinking. According to the NFDA, the U.S. cremation rate was at 63.4% in 2025 and expected to rise to 82.3% by 2045.

Which Funeral Provider or Funeral Home Should You Go With?

Unlike at-need deaths, preplanning gives you a window to choose the best provider for your needs. Here are some things to consider when reviewing your options:

• Price Transparency: Under the FTC Funeral Rule, providers must provide consumers with a General Price List at the start of any in-person conversation and when consumers call. However, some make their GPLs more readily available, indicating price transparency. The GPL should also be straightforward and easy to read.
• Reputation: Look for companies with positive online reviews and a history of providing excellent service. An accreditation by the NFDA or a state funeral directors organization could be the icing on the cake.
• Licensing: The provider should be state-licensed and properly registered.
• What’s Included: Hidden fees are common in the funeral industry and often arise due to transportation outside a specific area, overweight fees, pacemaker removal, permits, death certificates, credit card fees, and urns. Find out what’s included in your plan to ensure you don’t go over budget.
• Convenience: Ensure cremation can be arranged over the phone or online.

Memorial Services and Final Resting Place

When preplanning, you may also want to consider your memorial service options and final resting place. Some providers, like Opal, can walk you through your choices. For example, we partner with Eterneva, Parting Stone, and sea scattering providers for a full-service direct cremation experience.

You may also have specific wishes regarding how you would like family to celebrate your life, where you would like your ashes scattered, or whether you would like them stored in a mausoleum. These wishes are typically included in a letter of instruction, which is not legally binding. However, when you pre-plan with a provider for these services, your wishes are more likely to be recognized.

How Do You Know That Your Money Will Be Safe?

There are two safeguards for families planning ahead:

Trust Accounts

• You enter into a trust account when you agree to make prepaid arrangements with a funeral home. Depending on state rules, the full prepaid amount or a percentage of that amount may be placed in a trust.
• In most cases, the money can only be accessed in the event of your death.
• If you’d like to change funeral providers, you may have the option of transferring your funds to another funeral home, depending on state laws.

Guaranteed Plans

• When entering into a prepaid agreement, ask if the services are guaranteed. This ensures that all of your prepaid services are covered, even if prices go up. Find out whether it includes cash-advance items such as death certificates, cemetery fees, and obituaries.
• Guaranteed plans differ from non-guaranteed plans, which work more like down payments, where family members will have to foot the difference when you pass away.

Preplanning vs. Insurance vs. A Payable on Death Account

While preplanning is helpful, similar needs can be met through life insurance or a payable-on-death account. Here are some differences to be aware of.

What is Preplanning?

In this context, preplanning refers to making after-life arrangements with a funeral home and paying for them in advance.

What is Funeral Insurance?

Funeral insurance is included in life insurance policies. Some policies, like whole life, final expense, and burial insurance, set aside money specifically for burial and cremation costs. With others, like traditional term insurance, the money may or may not be used to cover end-of-life expenses.

Insurance is preferable to preplanning for some because it offers more flexibility. You aren’t locked into working with a specific provider.

However, there are some downsides to consider as follows:

• The payout period can be long, meaning family members may have to pay for death expenses out of pocket while they wait for funding.
• Additionally, there is not always a guarantee that the money will be used to cover your death, meaning it may be used in a way you don’t approve of.
• Finally, processing claims can get confusing. While some providers will help with the process, they may charge a fee.

What is a Payable on Death Account?

A payable-on-death account is set up with a bank and involves the deceased leaving money to a beneficiary. Although the money may be meant to cover death expenses, it can be used for anything. Beneficiaries are generally under no legal obligation to distribute the money or abide by the deceased’s wishes.

It’s essential to choose a reliable beneficiary to ensure everything goes as planned.

Opal Can Guide a Smooth Insurance or Preplanning Process

Do you have questions about making prepaid cremation arrangements in Los Angeles and Orange County? Opal Cremation can walk you through the process of starting to plan, step-by-step. We assist with the pre-planning process or help you fund a claim after a loved one passes at no additional charge.

Compassionate professionals are eager to take your call and provide you with all the information you need about Opal’s direct cremation services in Southern California. Contact us here to learn more about what we offer. Find out what makes us the best cremation provider in Los Angeles and Orange County.

FAQs

When is the best time to start a prepaid funeral plan?

There is no best time to start a prepaid funeral plan. Generally, the earlier the better. Prices can only go up, so locking in early could mean optimal savings. Additionally, planning when you’re healthy gives you plenty of time to compare prices and make the right decisions. Once that’s out of the way, you can focus on enjoying your life.

What happens to my prepaid plan if the funeral home goes out of business?

Because your money is typically held in a trust, it should be returned to you if the funeral home closes. Confirm with your provider to ensure this is the case.

Can I make changes to my prepaid plan after signing?

Yes, in most cases, you can make changes to your prepaid funeral plan after signing, including updating your memorial preferences and contact information. However, doing so may affect pricing.

Does my prepaid plan cover everything, or will my family still have out-of-pocket costs?

It depends on the terms of your prepaid plan. For example, you may have ordered five death certificates in your plan, but your family decided ten were necessary. They may also incur unexpected fees, such as pacemaker removal, transportation, or overweight charges. However, your plan should cover the bulk of the expenses.

Is a prepaid funeral plan the same as a will or an advanced directive?

No, a prepaid plan is a financial and logistical arrangement with a funeral director. A will addresses the distribution of assets, and an advanced directive covers medical decisions. All three serve different purposes and ideally, will work together to support a smooth process.

Additional Resources

• The Real Cost of Direct Cremation in Los Angeles
• Using Life Insurance to Pay for Cremation: What Families Need to Know
• General Price Lists, Cremation, and Legislation in California
• The Real Cost of Direct Cremation in Orange County