I have heard that some people who have made pre-arrangements were asked to pay more at the time of the funeral. Why?

Pre-arrangements are set up in many different forms.

Some pre-arrangements guarantee the cost of the covered items. This means that all the items included in the pre-arrangement contract are covered at no additional expense, ever.

Some pre-arrangements are non-guaranteed meaning that an amount of funds are set aside to earn interest and are to be applied to funeral expenses. A non-guaranteed pre-arrangement may require additional payment at the time of the funeral if the interest does not keep up with the increase in cost of the items covered in the contract.

Expenses that are not under the control of the funeral home such as cemetery expenses, sales tax, or obituary notices are often not covered in a pre-arrangement contract, or may be covered under a non-guaranteed pre-arrangement. In this case there may be additional payment required.

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