A preplanned, prearranged or prepaid funerals are all typically the same thing. These are funerals that have been agreed and paid for prior to the event with a designated funeral provider. A prepaid funeral is an alternative way to pay for a funeral rather than paying for funeral insurance or buying a funeral bond. Once you pay for the agreed cost of the funeral there is nothing more to pay, unless you want to make changes to the original plan. This means you are able to pay for a future service in today’s dollars, saving you money in the long run. Because a pre-paid funeral is different to funeral insurance, it also means there are no health checks and no ongoing premiums once the balance is paid.
You can typically prepay for a funeral plan as a lump sum when making the arrangement or in instalments.