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Step 1
Consider setting aside a small amount of money each month if your child is healthy. Planning for "What if?" can provide ease of mind knowing that there are funds for unexpected tragedies or illness. Place the money in a money market account, certificate of deposit or Series EE bonds for quick liquidation if needed. The advantage to this method is that the money can be used for other things once the child has reached adulthood.
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Step 2
Think about purchasing life insurance. In general, life insurance is relatively cheap and provides peace of mind if funeral expenses need to be covered. The cheapest form of life insurance is term insurance. Purchase enough insurance to cover funeral expenses, which range from $4,000 to $10,000.
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Step 3
Investigate funeral planning options at a local funeral home. Many homes offer preplanning and prefinancing options for different situations. Keep in mind that the cost from funeral homes can be higher than other options.
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Step 4
Start up a funeral fund soliciting donations for sudden deaths or deaths by illness. Host community fund-raisers to cover the funeral costs. Accounts can be set up at a local bank and the amounts sent to the account for the family to use.
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Step 5
Plan a funeral that you can afford. Choose funeral arrangements that eliminate unnecessary or extravagant spending. Federal law requires that funeral homes provide a detailed list of costs.
