A funeral is an essential expenditure, and a little planning will eliminate the uncertainty of costs and payment. If you don't plan for funeral expenses, you run the risk of your family having to ask friends and relatives to share an unexpected financial burden, which can put everyone in
an embarrassing and uncomfortable position. And if you borrow money, it has to be repaid.

Here are some options for financing funerals:

Pre-Need Insurance
Pre-need plans are designed to cover the expenses associated with your death and funeral. Pre-need insurance companies offer several payment options to give you flexibility. This is the best option in pre-paying for funerals. Funeral Trust Money prepaid on funerals may be placed in a trust through the funeral home.  Payment in full would guarantee the price of the funeral.

Life Insurance
A traditional life insurance policy can meet several needs: pay off loans, fund education costs, and provide for living expenses, as well as funeral expenses.  However some life insurance policies will not grow at the rate of inflation and may not cover the full cost of the funeral.

Savings Account
Beware with this strategy. A long illness can easily deplete short-term savings, while taxes and early withdrawal penalties can reduce long-term savings. Alabama has laws regarding the handling of monies prepaid on funerals.  A great percentage of the funds paid in must be placed in a state approved account to guarantee that the money you have paid will be there at your death.

Radney Funeral Home places 100% of all monies prepaid into a highly rated insurance program or into the Funeral Director's Trust of Alabama.