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Can I pre-pay for my own funeral?

Yes. You can prepay a funeral home directly, buy insurance meant for funeral costs, or simply set money aside. Each works differently, and the details matter.

Edited by Steven Royster, Licensed Funeral Director (FL) Published January 3, 2024 Updated How we create content

Key points

  • Planning ahead (writing down your wishes) and paying ahead are separate decisions. You can do the first without the second.
  • Preneed contracts are regulated by the states, and consumer protections vary a lot from state to state.
  • Before you sign, find out exactly what is covered, whether prices are guaranteed, where the money is held, and what happens if you move, cancel, or the funeral home closes.
  • If you receive SSI or Medicaid, special rules apply — check them before buying anything.

Why people prepay

Common reasons include wanting to spare family the decisions and the cost, locking in some prices, and — for people applying for Medicaid — setting aside funeral money in a way that may not count against eligibility. Prepaying also carries risks, so it's worth comparing the options below.

Option 1: A preneed contract with a funeral home

You choose your arrangements with a specific funeral home and pay in a lump sum or installments. The funeral home typically places the money in a trust or buys an insurance policy that pays the funeral home when you die.

Questions to ask before signing:

  • Which goods and services are covered? Get an itemized list.
  • Are prices guaranteed? In a "guaranteed" contract, covered items are provided at no extra cost later. In a "non-guaranteed" contract, your payments are a deposit, and your family pays any difference.
  • What is not covered — typically cemetery charges, cash advance items like death certificates, flowers and obituaries?
  • Where is the money held, and who pays any taxes on trust earnings?
  • Can I cancel? Will I get a full refund, including interest? Some states allow full refunds; others allow the seller to keep a portion.
  • Can the contract be transferred to another funeral home if I move or if this one changes ownership or closes?
  • Is the contract revocable or irrevocable? (Irrevocable contracts are often used for Medicaid planning but generally can't be cashed in.)

Your state's funeral or insurance regulator can tell you what protections apply. Keep a copy of the contract with your important papers and make sure your family knows it exists.

Option 2: Insurance for funeral costs

  • Final expense or burial insurance is usually a small whole-life policy. Some don't require a medical exam. Many "guaranteed issue" policies pay only a limited benefit (such as a return of premiums) if death occurs within the first two years. Compare the total premiums you may pay against the death benefit.
  • Ordinary life insurance can be used for funeral costs. The beneficiary receives the money and decides how to use it; it isn't tied to a funeral home.

Option 3: Set money aside yourself

A payable-on-death (POD) account at a bank or credit union names a beneficiary who can claim the money after your death, usually without going through probate. You keep full control while you're alive and the money isn't tied to one funeral home. The trade-off: prices aren't locked in, and the beneficiary isn't legally required to use the money for your funeral, so choose someone you trust and tell them your wishes.

Option 4: Memorial societies

Some nonprofit memorial or funeral consumer societies help members plan and compare prices. Membership usually doesn't involve prepaying a funeral home.

If you receive SSI or Medicaid

For SSI, up to $1,500 set aside specifically for burial expenses can be excluded from countable resources, and burial spaces (such as a plot, casket or marker) can be excluded as well. Medicaid rules for funeral contracts are set by each state, and irrevocable preneed contracts are commonly treated differently from other assets. Ask your state Medicaid agency or an elder law attorney before buying.

A plan is valuable even if you don't prepay

Writing down your wishes — burial or cremation, the kind of service, who should be involved — and telling your family where to find your documents may be more important than prepaying. See our planning ahead guide, use the funeral planning checklist, and estimate costs with the cost calculator.

Sources and references

  1. Federal Trade Commission: Planning Your Own Funeral
  2. Federal Trade Commission: Shopping for Funeral Services
  3. Social Security Administration: Spotlight on burial funds (SSI)
  4. Funeral Consumers Alliance (nonprofit): Funeral Consumers Alliance

Rules, benefit amounts and prices change. Where a source is a government agency, check it directly for current figures. See our sources and fact-checking policy.

Related guides and tools

This guide is general educational information from Serene Farewells, an independent publisher. It is not legal, medical, financial or tax advice, and Serene Farewells is not a funeral provider. Laws and prices vary by state and provider. Spot an error? Tell us.