Rockwills Wealth Planner

Pre-Need Planning

Pre-need Planning

When a person has taken care of expressing his wishes on the distribution of his estate through will and trust instruments and made provisions for cancellation of liabilities upon death through insurance, one final thing he may want to take care of are the burial formalities.

When death occurs, family members are often caught unprepared and unsure about the formalities of organising a funeral. And differences in opinion among various family members may cause further distress to an already stressful situation. Sometimes included in wills are burial instructions. This provides precise direction as to how the person wants to be buried.

Taking it a step further, many testators are now purchasing what is called a pre-need bereavement package. This is usually the purchase of a pre-selected burial plot together with pre-selected burial rites and wake arrangements. Purchasing a pre-need bereavement package saves the family the hassle of funeral arrangements, relieves family members from decision making at a time when they may be least prepared to do so and the funeral costs are fixed at today's price to avoid rising costs.

There are specialists available to provide advice on pre-need planning and what is available as pre-need packages.

Pre-need Planning FAQs

What is pre-need planning?

Pre-need planning involves the planning of your final departure with dignity and respect before it will eventually take place one day. It is about caring for your loved ones and relieving them from the burden of making these decisions at the time of emotional turmoil. It also helps to avoid your loved ones having to aggrieve further with the potentially enormous sum of the financial expenses which would be incurred. Pre-need planning forms a part of a good estate planning.

What sort of pre-need packages are available?

There are basically 2 types of pre-need products or services:

i.	Burial Plots / Niche - This is a burial plot or a niche/ urn compartment at a columbarium selected in advance before death.
ii.	Bereavement Care / Funeral Services - This is the complete funeral support and services selected in advance before death. Such services may cover from casket to wake services to burial rites. It can be planned based on diverse faiths and preference at a pre-determined pricing which depend on the items or services selected.

Depending on what the budget is, pre-need packages can range from the very basic to the very sophisticated. Different bereavement care providers offer different pricing for their packages. Generally, a basic package would comprise a standard casket/urn, standard hearse plus a complete package of 1 night funeral services. A sophisticated package may include a good quality imported casket/urn, luxury hearse plus a complete package of a 2 nights funeral services. The funeral services may include provision of type of premises, decor, attendants, prayer rites and light refreshments. Prices generally range from about RM5,000 to RM40,000. (Additional charges will be incurred for additional requirements).

Pre-need packages allow you to pre-pay the above products and services via instalments or an easy payment scheme.

The benefits of signing up the pre-need products and services include:

	Locking in at the current pre-determined price depending on budget. The pre-need prices will remain unchanged irrespective of when death occurs. Thus, there is no risk of rising cost due to inflation.
	The pre-determined price can be serviced via monthly instalments, usually interest free or sometimes at a pre-determined interest rate if via a credit card easy payment scheme. This helps to ease cash flow.

Taking a pre-need package can be part of good cash flow management and financial planning. The family is not further burdened by additional and uncertain expenses at a time when they are trying to cope.

Who provides such bereavement packages?

There are a few big bereavement houses and many small ones. Some of the reliable ones who have established well-maintained memorial parks and provide the bereavement care services in a professional manner with beautiful settings. The choice of a bereavement house may also depend on the location of the burial grounds they provide.

Approaches: Estate Planning > Trust >>

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