According to AARP, the purchase of prepaid funeral arrangements is big business in the United States.  AARP says that more than 25 million adults, 50 years of age and older, have prepaid some, or all, of their funeral expenses.  What’s important to know when considering this important personal business decision?  

1.  What is the primary purpose of a prepaid agreement?  A contract for future delivery of specific services ... Funding mechanism to pay for those goods and services ... Most, but not all, contracts guarantee to lock in the price.

2.   What have you discovered to be abuses with some prepaid funeral plans?  Lack of portability ... Plan good at only single funeral homes or cemeteries ... Unexpected expenses ... discovery that some plans do not cover all expenses ... Marketing abuses ... high-pressure sales techniques -- selling of more expensive goods and services

3.  What should you do before securing a prepaid plan?  Be sure to compare prices ... FTC requires itemized cost disclosures ... Review the plan carefully ... review with an attorney, accountant, or family financial advisor ... Visit the facility ... Investigate the funeral home’s reputation ... Contact the Better Business Bureau 24 hours a day at (409) 835-5348 or (855) BBB-SETX or www.bbb.org