How does Preneed Funeral insurance work?

Preneed Funeral insurance is a type of permanent life insurance that only covers your funeral expenses. It’s purchased through a funeral home, which becomes your insurance beneficiary. You attend a preplanning appointment with your funeral home director, where you choose every feature you want included in your funeral service. The funeral home director totals the costs, and that amount is the basis for your Preneed Funeral insurance plan. It also holds that rate for the cost of your funeral, regardless of inflation. Upon death, the funds are given to the funeral home to pay for your funeral.