A funeral preneed contract is a useful way to plan and financially secure your own funeral at an early stage. But what should you pay attention to when choosing and concluding such a contract? In this article, we'll address the key points to consider.
1. Check the seriousness of the provider
When choosing a provider for your funeral preneed contract, it is first important to check the seriousness and reliability of the company. Pay attention to the following aspects:
- Is the company a member of an industry association such as the Association of Independent Funeral Homes e.V.?
- Are there any positive reviews and testimonials from other customers?
- Does the website look reputable and professional?
- Are your questions answered competently and in detail?
Thorough research can help rule out dubious providers and find a trustworthy partner for your funeral plans.
2. Check the scope of services carefully
Funeral preneed contracts can vary significantly in their scope of benefits. Make sure that the contract covers all aspects that are important to you, such as:
- Transfer and care of the deceased
- coffin or urn
- Organization of the funeral service
- Grave site and grave care
- Payment of cemetery fees and official costs
Review the contract carefully and be explained to you which services are included in detail. This will help you avoid surprises later on.
3. Flexibility of contract drafting
A good funeral benefits agreement should be tailored to your individual wishes and needs. Make sure that the provider offers you enough leeway to adapt the contract to your expectations. These include, for example:
- Choice between various burial types (burial, fire, sea burial)
- Possibility to personalize the funeral service
- Choosing the place of burial
- Option to adjust the contract as needed
The more flexible the contract can be, the better you can take your personal wishes into account.
4. Securing the amounts paid
Financial security is an important aspect of funeral planning. Make sure that your deposited amounts are protected against possible insolvency on the part of the provider. There are various options here:
- Escrow account: The funds are kept in a special account and are protected in the event of insolvency.
- Insurance solution: The contract is concluded through an insurance company that covers the agreed benefits in the event of death.
- Deposit to a separate account: You deposit the funds into a separate account that the provider has no access to.
Let the provider explain to you exactly how financial security is regulated and what the advantages and disadvantages of the various options offer.
5. Regulation for death abroad
If you travel a lot or are planning to spend your retirement abroad, you should check whether the funeral preneed contract also applies in the event of a death abroad. Not all providers cover the costs of transportation or burial outside Germany. Clarify this point early on and decide whether you may need additional protection abroad.
6. Options for contract adjustment
Over time, your wishes and ideas regarding your own funeral may change. It is therefore important that the funeral preneed contract offers options for adjustment. Ask under which conditions and to what extent changes are possible, for example:
- Change of burial type
- Change of burial place
- Adjustment of services and contract scope
- Increase or decrease in amounts deposited
The more flexible the contract is, the easier it is for you to adapt it to changing living conditions.
7. Cost transparency
When choosing a funeral preneed contract, make sure that the costs are presented transparently. The provider should give you a detailed overview of what costs are incurred and how much, for example:
- One-off payments or monthly contributions
- Contract management fees
- Costs for individual services such as transfer, coffin, grave site, etc.
- Possible additional costs or price adjustments
A transparent cost presentation helps you to compare the various offers and choose the option that is right for you.
8. Regulation for the place of burial
An important point when drafting your funeral preneed contract is choosing the burial location. Depending on which location you choose, there may be different costs and requirements. Therefore, check:
- Does the funeral preneed contract also cover the costs for a funeral outside the place of residence?
- Can you choose a cemetery or a burial area yourself?
- Are the costs of a transfer to another location covered?
- Are there any specific requirements or requirements for the desired burial location?
Advice from the provider can help you find the right arrangement for you.
conclusion
The decision for a funeral preneed contract needs to be carefully considered. Take the time to compare different providers and contract options and pay attention to the points mentioned above. A reputable provider, a flexible scope of contract and a transparent presentation of costs are important criteria for suitable funeral provision. With the right precautionary measures, you can go into the future with peace of mind and know that your last wishes are in good hands.
We would be happy to advise you on retirement planning free of charge and without obligation. More Information about our offer can be found here.