Pre-planning is the process of selecting your choices of funeral arrangements in advance and having them on file at a funeral home, in your will, and/or with your family.
It’s a good idea.
Pre-arranging involves pre-payment of some or all of the funeral arrangements that you choose.
It may or may not be a good idea. People will tell you it’s for “peace of mind”, but it’s a personal decision you should make once you know all the facts!