The first thing that should be said about this subject is that the Ontario government strictly regulates prepaid funeral contracts.
The first thing that we do when you meet with us to plan your funeral is we figure out exactly the type of funeral you want and cost it out at that day’s price. You can either make a full payment right then or you can enter into a time payment arrangement that, depending upon your age, can be up to fifteen years long.
A common misconception is that the funeral home now has your money. This is untrue. The funeral home places your money in a government-sanctioned investment on your behalf and it is always your money until the day you die. You will even write your cheque directly to this investment company. Your money is absolutely safe no matter what.
Additionally, your money will also grow with tax-free interest over time. Once the time comes, the money (principle and interest) become the funeral home’s. We take this money and cost the funeral as of the date of death. If the amount of money we received is more than the funeral costs on that date then we refund the difference. If there is a deficit at the date of death then the funeral home takes the loss on the funeral.
We will never ask your family for any more money for the funeral home charges contracted.
Did You Know…Your money earns tax-free interest over the life of the contract? Even in death the interest that goes toward the cost of the funeral is TAX FREE. Your money does not flow through your estate at death, potentially saving your estate up to 2.5% in probate fees. Your money is guaranteed safe and is backed by the federal and provincial governments.
Years ago people did not realize that they had the option of a prepaid funeral. Now, the public perception is on the other end of the spectrum. Most people think that they have to prepay for their funeral. Of course, this isn’t the case. If you choose not to pre-pay then we still go over all of your options and document them for when they’re needed. Payment will occur at the time of death and for the cost at the time of death. Usually your family will be asked to provide a deposit at the time of the arrangements with payment in full within 30 days unless a special arrangement is made.