My parents purchased prepaid burial plans a long time ago. They were actually in their mid 60’s at the time, had a little extra money and paid $2500. This was supposed to cover their burial expense no matter when in the future it happened, and within conservative parameters, at whatever the cost was at the time.
My father died last year at age 86. He had paid $2500 to his bank for this plan 20 years prior to that. Within the past couple of years my parents had opted for cremation versus burial, thinking that all of that casket and burial stuff was just something they had outgrown. The bank were very forthcoming about writing a check for the cost of the cremation and service, about $2500. If my parents had dropped that money into some modest investment netting say 6%, there would have been over $8000 at the time of his death. It wasn’t that it was necessarily needed, but the additional $5500 probably would have served my Mom better than the bank. Seems like they could have at least split the profit with them.
My nephew came up with the Ebay burial plan. On short notice he was able to find a casket, a lot of land, and a headstone for just over $1000. Keep in mind that my parents didn’t need a plot of land because of cremation. So, subtract the land, the headstone and casket and add an urn and you’re talking about some serious savings now.
Bottom line. Burial insurance sales are despicable money grubbing bottom dwelling emotion twisting out of proportion ripoff gimmicks. Don’t buy one and don’t let anyone that sells them near your parents. There’s no problem with setting money aside and planning, just not with a prepaid funeral plan.