Final expense insurance and pre-need plans are different ways to pay funeral and burial costs. The terms are often used interchangeably and may seem like the same thing, but there are subtle differences. Both methods provide funding for end-of-life expenses, and the process of choosing either one encourages people to make plans for their passing.
Understanding the difference between final expense insurance and pre-need plans is a great introduction to the funeral pre-planning process. Advance planning allows you to document your final wishes and make arrangements according to your personal preferences.
How you pay for the pre-arranged funeral and burial costs, however, is a key part of the overall plan.