How to make the right funeral arrangements with a funeral plan checklist

the reality of 10 million subscribers

as of March 2025, there were 9.6 million subscribers and more than 10 trillion won in assets under management. However, even though so many people have signed up for funeral services, the question remains whether they are truly prepared.

experts emphasize that just like insurance, you need to check the terms and conditions carefully and organize and manage it as needed. It is more important that you are ready to use it when you need it than the fact that you have it.

to make sure you're prepared, here are three things you should do when signing up for an annuity.

checklist #1: Know what you're getting

many people don't know exactly what they're getting, what's covered, what the refund terms are, and what the additional costs are - they just sign up and don't know where the paperwork is.

the Korean Consumer Affairs Agency warns that most of the damage caused by funeral services is due to not checking the contract beforehand. You should check your contract regularly, not just after signing up.

take a moment to pull out your contract now and check the following make sure you know what services are included, under what conditions you can get a refund, and what additional costs you may incur.

funeral plan checklist Discuss your funeral wishes with a second family member

your family will make most of the decisions about your funeral, not you. If you have a preference, it's a good idea to share it with them in advance.

from whether you want to be cremated, buried, or given a natural burial, to whether you want to include religious services, to whether you want to use a funeral home, agreeing with your family ahead of time can reduce confusion when the time comes.

there can be additional costs, especially if the funeral plan you've signed up for differs from the way you want your loved one to be buried. The cost difference between cremation and burial can be significant, and the cost of natural burial varies by region, so it's important to make sure everyone in your family is on the same page.

third on the funeral plan checklist: Calculate costs based on my criteria

the average cost of a funeral is around 18 million won, but don't rely on this number alone. The actual cost of a funeral can vary by two to three times depending on the region, duration of the funeral, and choice of burial site.

the cost of a funeral home in Seoul and the provinces is different, the cost of a 3-day burial and a 5-day burial is different, and whether you choose a mausoleum or an arboretum also makes a big difference.

calculate the cost of your funeral in advance so that you don't get caught off guard by unexpected additional expenses. You can also compare your funeral coverage with the services you actually need to make sure you have enough money to cover any gaps.

keep these tips in mind

the most important part of choosing a funeral service is to shop around. Compare funeral plans to make sure you're getting the best coverage and price.

it's also good to know the difference between preplanning and insurance: preplanning is when you receive a service and insurance is when you receive cash, so having both is the best way to plan for your funeral.

if you decide the plan isn't right for you, know how to cancel it. make sure you know how much your cancellation refund will be beforehand so you don't lose money.

frequently asked questions

what are the most important things to look for when signing up for an inheritance?

the coverage and refund terms are the most important. Make sure you know what services you're entitled to and how much you'll get back if you cancel.

what are the most common ways people get ripped off?

i've seen people get stuck with extra fees because they didn't read the contract properly, or lose services because the company went out of business. Checking to see if the company is registered with the FTC is the first step in preventing this.

what should I tell my family about funeral arrangements?

make sure your family knows the name and contact information of the funeral company you've signed up with and where to find your contract. your family needs to be able to contact you in the event of an unexpected situation.

what are the refund terms for funeral plans?

the amount of your refund depends on how much you paid and how long you've been enrolled. Generally, the earlier you cancel, the lower the refund, and the closer you are to full payment, the higher the refund. Check the refund policy in your contract.

what are the additional costs beyond the average funeral?

there may be additional costs for cemetery fees, food, tributes, religious ceremonies, and more. You'll need to budget for these items separately if they're not included in the funeral service.

key takeaways and wrap up

remember the three points of the funeral plan checklist. know your options, discuss your funeral wishes with your family, and calculate costs based on your criteria.

funeral arrangements aren't just for you, they're for the family you leave behind. Pull out your pre-need contract and review it today.

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