Thinking about your funeral probably isn’t at the top of your to-do list. Life can be hectic and you may keep putting it off. However, taking the time to properly put some plans in place makes a lot of sense. A pre-arranged funeral plan can save your family time, money and stress at a very difficult period in their lives.
Are funeral plans a good idea?
The cost of funerals is rising and one of the main benefits of this type of insurance plan is that it allows you to fix your future funeral costs at today’s prices. This ensures that there will be sufficient funds to cover the funeral director fees and third party expenses such as cremation or burial costs when you pass away.
So are funeral plans worth it? When you choose a pre-paid funeral policy, you make an important decision that will save your loved ones a lot of emotional stress and worry during a vulnerable time in their lives. In addition to making financial provisions for your funeral, you’ll also be helping your loved ones by taking care of the arrangements in advance.
How much does a pre-paid funeral plan cost?
The cost of a funeral plan depends on the options you choose, but can be from as little as £18 per month over a fixed time period.
Plans can be paid for in a one-time lump sum or in instalments throughout a fixed time period, usually between 12 and 120 months.
To protect your money, the funeral plan provider will either place your money in a trust fund or invest it in an insurance plan that pays out once you pass away. This investment will be safeguarded by rules set by the Financial Conduct Authority (FCA), although the FCA do not directly regulate funeral plans.
Entrusting your investment with a registered member of the Funeral Planning Authority (FPA), who operates within strict parameters set by the FCA, is the best way to protect your money.
Providers who become members of the FPA have to follow strict Code of Practices. If you are looking at cheap funeral plans, then this is something you should definitely check with the plan provider.
What’s the difference between a funeral plan and life insurance?
Life insurance may not pay out for a number of weeks after your funeral and also doesn’t offer any guidance or pre-planned arrangements to help your family.
Your funeral director fees, the costs of the burial/cremation and other expenses such as doctors’ fees will all need to be paid shortly after your death and a funeral plan can take care of this in advance rather than your family having to find the money.
In addition, life insurance doesn’t protect you from the rising costs of funerals. A pre-paid funeral plan will fix your costs at today’s prices and save your family money.
It’s also worth noting that if you are over 65 then there is no guarantee you will be accepted for life insurance. Premiums for life or funeral insurance can get very expensive if you are older, whereas funeral plans for over 65s cost no more than those for under 65s.
What funeral arrangements can you make in advance?
A well planned funeral can make a fitting tribute to your life and be a real comfort to your loved ones. Opening a funeral plan will give you the opportunity to create a funeral service that is both personalised and memorable.
Similarly, if you would prefer a simple ceremony, you can design a funeral service to meet both your wishes and your budget.
You’ll be able to choose a trusted funeral director in advance and make decisions on what you’d like to happen at your funeral. This can include:
- Whether you’d prefer to be buried or cremated
- Who you’d like to attend
- What kind of transport you’d prefer (hearse, horse-drawn carriage, motorbike)
- What people should wear
- What music you’d like
- What poems or readings you’d like
Having these arrangements in place will take the burden away from your family and give you peace of mind that you have put in place a fitting tribute to your life.
Which funeral plan is best for you?
When choosing the best pre-paid funeral plan for yourself, it’s important you seek independent advice. Speaking to an independent advisor will help you compare pre-paid funeral plans to find the plan suitable for you.
If you’d like to speak with an advisor and receive a no-obligation quote, then visit our funeral plans page and fill out the quote form.