Pre-Need is simply the prearrangement and the planning of funeral services before the need arises, often years before the death occurs. A funeral director records your preferences for the type of service desired, music and flowers, casket selection or cremation, and other information. You and your family receive a copy of the preferences, and the funeral home keeps a copy as well. Keeping these records in an accessible place is important to surviving family members.

People prearrange funerals for many reasons. Some may have definite preferences concerning the funeral service or merchandise and that their families be informed or involved in the decisions. Others want to save their survivors from having to make the decisions at a difficult and confusing time.

Some individuals who have been faced with making selections for loved ones may wish to spare others from the indecision, guessing, emotion, or anxiety they experienced. Still others may prearrange because no one else is capable of making responsible decisions. Many like the benefit of financial savings that come from prepaying expenses. In any case, funeral prearrangement can ease many concerns and is often viewed as an element of estate planning.

Generally, trust and life insurance provide ways to fund your choices. Each provides a different set of advantages and options.

Trusts can be revocable or irrevocable. In most cases, they are revocable, meaning that funds can be withdrawn at any time. At the time of death, however, these funds can be paid directly to the funeral home upon presentation of the death certificate. The process assures your funeral expenses are paid.

Trusts are often used to protect an individual's assets and solve some estate consequences. For those in nursing homes, for example, this method helps assure that funds will be available long after all other finances are depleted. Taxes on earnings can be the responsibility of the funeral home and not the individual.

With life insurance, coverage often begins the day you apply for a policy, and you may not be required to hold your policy for a specified period of time before you receive full benefits. This funding helps assure you're financially cared for no matter when death occurs. Flexible payment plans may also be available.

In most cases, the use of services indicated at the time of prefinancing means no additional cost should be incurred at the time of death.

If all or the funeral preparations take place at a funeral home other than the one prearranged with, records of your preferences can be transferred. If funds were in a trust, they normally will be paid to the funeral home providing services.

Additional, insurance will be applied toward your arrangements regardless of the funeral home that provides services, subject to the funeral home's policy and provincial laws. The funeral home you arrange with may offer some special programs to assure you are protected no matter when death occurs.

Services can be planned for you and your family members at a convenient time by contacting the funeral director to discuss the selection of merchandise and services. Simply ask the funeral director of your choices, either at the firm or in the comfort of your own home. This simple gesture of consideration can help your family. Funeral arranging before the need arises is thoughtful and easy to do.