What are pre-paid funeral plans?

Benjamin Franklyn once wrote “In this world nothing can be said to be certain, except death and taxes”.

Death is not a topic that we enjoy talking about, we all tend to put it to the back of our minds and rightly so as the very thought of our own demise is a frightening prospect.

For most people, the fear is not for themselves but for their loved ones that are left behind. Many people worry about the financial aspects of death as well as the emotional impact.

At some stage in life, people begin to think about putting their affairs in order. This usually happens a little later in life. Ask a 21-year-old if they have considered buying a pre-paid funeral plan and they would quite rightly find the idea very amusing. Ask a 55-year-old however and the response would be very different.

Why do you need a funeral plan?
The simple answer is to save money on the cost of your funeral.

The average cost of a funeral plan is around £3,500 which usually includes an amount of £1,000 to £1,200 towards third party charges. Third party charges cover costs such as the cremation or internment fee, the Doctors fees and the Ministers fees.

It is estimated in the Sun Life Cost of Dying Report 2017 that the average cost of a basic funeral will rise to £4,260 in 2018, an increase of 4.7% compared to 2017. By 2022 the cost of an average basic funeral is expected to rise to £4,944. One thing that is certain is that the cost of a funeral will continue to rise year on year.

When you take out a prepaid funeral plan, your funeral directors costs are fixed. No matter how long you live or however much the funeral director’s fees and services may be at the time, your family will not have anything further to pay towards them*.

Apart from the financial benefits, knowing that your family will have professional support and guidance available to them at a very emotional time, is very reassuring to many of our clients.

How do funeral plans work?
A funeral plan is NOT an insurance policy. This means that there are no age restrictions (other than the minimum age for starting a plan is age 18), no medical questions or credit checks, you are guaranteed to be accepted for a funeral plan.

You can either pay for the plan as a lump-sum or you can spread the cost over a period of time, usual payment periods are 1, 2, 3, 5, and 10** years. We only recommend plans where the funeral plan is valid from day one. For example, if a person bought a plan over a 10-year period and died the following day, providing the outstanding balance of the plan is paid by the family, the funeral plan remains guaranteed to cover the costs of the funeral. This is not the same with every plan available so care needs to be taken when choosing a plan.

What is included in the cost of the plan will be clearly laid out and you can tailor the plan to suit your needs.

Following a death, the funeral plan company will take care of the organisation of the funeral for you and pay the funeral directors costs direct. Any additional costs not included in the original plan, for example, an additional limousine, would be paid directly to the funeral director.

A funeral plan can be purchased by any individual over the age of 18 or as an ‘either or’ plan, this is where a single plan is used for a couple, with the survivor purchasing a plan following first death.
You can even use a funeral plan that you own for the funeral of another member of your family if that was necessary.

What are the benefits of a funeral plan?
There are many benefits of having a funeral plan, these include:
• You can fix and guarantee the cost of your funeral director’s fees at today’s rates
• Help relieve your family of the financial and emotional burden of paying for and planning your funeral
• Guaranteed acceptance with no age restrictions, medical questions or credit checks needed
• Flexible payment options
• You have the chance to plan your funeral, from the dress code to the choice of music or flowers. You can even adapt your plan over time should you need to

What are the benefits of arranging a funeral plan with us?
We will provide you with a Single Will up to the value of £85.00 or a Mirror Will up to the value of £170.00 when you arrange your funeral plan with us.

We hope this article has been helpful and informative, if you have any other questions or comments contact us here, we are always happy to help.

*(Third party fees may rise due to inflation. Your representatives will be liable for payment of any shortfall).
**(Plans bought and paid for over a period of more than 2 years are subject to addition instalment handling charge).