The manner in which the funeral is funded will affect the ability of the funeral home guarantee delivery of the funeral which you planned.
Funeral price inflation has closely matched the rate of general inflation in the U.S. economy. Consequently, it is important for you to know if the money available at the time of death will be sufficient to pay for the cost of the funeral at that time.
Payment can usually be made in a lump sum or paid over time. If an annuity, savings account or trust fund is used to fund the funeral, a guaranteed funeral is usually not immediately available to you when installment payments are made. If insurance is used, the funeral may be guaranteed immediately or after one or two years, depending upon the insurance policy, even though the payments did not equal the cost of the funeral.
If your funeral is not guaranteed, it is important for you to know if the money available at the time of your death will be sufficient to pay for the cost of your funeral.