Concepts and Frameworks

By Dr. Simon J. Walter, Cultural Representative of the German Burial Culture Foundation

The topic of pre-need funeral arrangements (‘Bestattungsvorsorge’) has gained substantial relevance in Germany in recent years – not only for individuals seeking to make self-determined choices but also from a financial and social perspective. Without planning, the expenses around a funeral may come as an unexpected and overwhelming burden for relatives. Pre-need arrangements alleviate this burden and allow family and friends to focus on their grief and saying farewell to their loved ones.

As umbrella organization for over 5.500 funeral homes, the German Federal Association of Funeral Directors (BDB) has long advocated for pre-need arrangements as a key component of individual precaution. Especially in the context of demographic change, increasing numbers of single-person households, and shifting family dynamics, pre-need arrangements provide legal, financial, and emotional clarity – for the benefit of both individuals and their families.

But more than that, they are a cornerstone of sustainable business development in the funeral profession.

Available Options in Germany

In Germany, individuals usually choose between two options:

• Funeral Expense Insurance (‘Sterbegeldversicherung’)

An insurance allows individuals to save for their funeral over time through regular monthly payments. Policies are available without health checks and can be concluded even at a later age. In the event of death, the insured amount is paid out promptly to the designated beneficiary – typically a family member or funeral director. This model offers flexibility and predictability, especially for people with lower incomes or those in the early stages of retirement planning.

• Escrow Account (‘Treuhandkonto’)

The Deutsche Bestattungsvorsorge Treuhand AG (DBT), for example, offers a regulated and secure method for setting aside funds in a dedicated escrow account. Individuals can either make a one-time payment or contribute in instalments. The funds are earmarked exclusively for the planned funeral and are protected against unauthorized claims by third parties – even in cases of social welfare support due to care dependency. In an aging society with more and more fragmented family structures, this aspect is key for everyone who wants to ensure a burial according to their personal wishes.

In cooperation with a selected funeral home, all funeral preferences are documented and financially secured through an escrow agreement. This structure is especially valued for its legal robustness, transparency, and the personalisation it allows.

Read full article in the summer issue of THANOS magazine - you can read online at pages 22-24