A pre-arranged funeral plan allows a person to purchase funeral services in advance through a contract with a funeral home. This eliminates difficult decisions for loved ones at the time of death and protects against inflation. The person should inform their family of the plan and keep documents in a known location. Plans can be paid in full or through installments, which may include life insurance. Payments are held safely in trust or escrow until needed. Without a plan, family will have to make arrangements during the grieving process and pay all costs immediately.