Pre-need funeral (or pre-paid funeral)
With this product, available at most funeral homes, a consumer pays in advance for funeral services. The funeral home makes a commitment to provide the agreed upon funeral services at the time of death. Under Missouri law, the funeral home is required to put 80 percent of the purchase price into a trust fund accessible only to cover funeral expenses. Consumers have a right to see a record of all transactions on their behalf in the trust account.
You can cancel a pre-paid funeral plan at any time and get your payments refunded, minus 20 percent of the original purchase price.
While there are plenty of reputable sellers of pre-paid funerals, there are also con artists who collect money, never intending to provide the service. As an alternative to pre-paid funerals, consumers can set money aside in their own savings or trust account, to be used for a funeral at the time of death.
Sellers of pre-paid funerals must be registered with Missouri State Board of Embalmers and Funeral Directors.