I am 80 years old and have been receiving some flyers in the mail from local funeral homes about preneed funeral arrangements. It looks like they want my money before I’m dead! I would like to know if this "preneed" service is a good idea and what about the "prepay" option they say is such a good deal? The flyer says to pay less now or pay more later. What do you think? Not Dead Yet

Dear Not,

Pay now - die later, is a growing trend for many in the funeral industry! It’s estimated that between 9 to 11 million Americans have already bought some $21 billion worth of prepaid funerals. But buyer beware! There are a number of pitfalls and options you need to know about before you can truly rest in peace.

Preplanning Is Good

There are many advantages to planning your fun-eral, such as:

• You may choose the type of funeral service you desire.

• You can do comparison shopping at available mortuaries.

• You will be stimulating family discussion and decision-making.

• You will save your survivors from making choices during a time of stress and grief.

Savvy Note: Preplanning does not mean prepaying. If prepaying is required, keep reading.

Prepay with Caution

There are lots of salespeople in the funeral industry who will try to convince you it best to pay for your funeral in advance. But be careful! Before you sign or pay for anything consider the following:

• The cost of paying now as compared to paying at death. Take into account you will lose any investment income from the money spent.

• The possibility that the funeral home may go out of business or be bought out by another company.

• You may need to move to another area of the state or country. Will the funeral plan travel with you?

• Make certain your family has a detailed record of your paid request and are prepared to make sure the contract is fulfilled.

• Whether the prices are locked in or can change. Are prices also guaranteed if death occurs outside the local area?

•Money paid today may not cover inflated future funeral costs, resulting in substitution of less expensive merchandise or additional finding from survivors (just what you tried to avoid).

•Is the price reasonable and the package of services complete? Getting a detailed "funeral rule" list of what is included and comparison shopping will help answer this question.

Funeral Shopping

Financing a Funeral Rather than giving your money to a funeral home, consider setting up a bank account or trust which will pay upon death to the person you designate to take care of your final arrangements. One good option to consider is the Totten Trust. This is an individual trust or savings plan earmarked for one’s funeral. With a Totten Trust you control the account and can withdraw from it at any time. Usually a sum of money equal to today’s funeral costs is deposited in a passbook, certificate of deposit (CD), or money market account, payable to a beneficiary of your choice. This find will be available immediately at the time of your death without the delay of probate. Also the accumulated interest will cover the cost increase by inflation, but acquired interest is subject to income tax.

Funeral Shopping

Funeral Shopping Comparison shopping is a good thing when choosing a funeral home. The costs of such items as caskets or professional services will vary dramatically from mortuary to mortuary. A good place to help you find the best deals and services is your local memorial society, or local funeral consumer alliance program. These local programs can provide a wide range of funeral- planning and cost information. Many of these programs also offer negotiated discounts at certain cooperating funeral homes. To locate your local program call 1-800-765-0107 or visit www.funerals.org and click on "Directory of Funeral Consumer Groups."

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit nmw.savvysenion.org.