Are prepaid funeral plans worth it?
Short answer: yes, they are.
But that doesn’t tell you anything so let me explain.
In 2011 an average cost of a funeral was £2971 and in 2020 it was £4163, do the sums, a 40%
increase. I don’t know how old you are but think about what it will be in 5, 10 or 15 years if it keeps
going up at that rate!
Savings plans or life assurance policies are all good and well but how much is an inflated funeral cost
going suck out of these plans in the future. I’m not slating these savings and policies as they are good
to have, but not for funeral cover. You’re going to have to keep paying into them just to keep up
with funeral cost inflation. There are other factors that make these plans unsuitable for funeral
cover, but I won’t go into that now because I’m telling you why a funeral plan is worth it.
So going over re prepaid funeral plans worth it
There are many great reasons that make funeral plans worth it but for, me, a big reason is because
you are paying for your funeral at today’s prices. In 10- or 20-years’ time that money is long gone,
you’ve completely forgotten about it, but you still have your funeral plan valid at the prevailing
prices of the time. Why would you not want that?
Another excellent reason is that it takes away the emotional stress from your family having to make
the arrangements and pay for your funeral. They will be grieving; they will possibly be vulnerable to
being oversold on a funeral as they won’t want to ‘dishonour’ you by giving you a ‘cheap’ funeral.
You decide what type of funeral you have and how much is spent on it by pre-paying for it. Why
would you want to leave it up to your family or friends to arrange and pay for?
Those are the two main reasons, for me, but what else makes them worth it?
You get to choose the type of funeral you want and that is what you pay for,
Most plans also let you upgrade along the way to include items you did not initially chose,
i.e., two limos instead of one,
Flexible payment options allow you to pay it all up front or pay it monthly over a period that
suits your pocket,
All registered funeral plan providers must place your money in a whole of life insurance
policy or an independently managed funeral trust fund, so your money is safe,
Guaranteed acceptance without any requirements for medicals,
Registered Providers are approved by the Funeral Planning Authority (FPA),
Some plans will pay out even if all the premiums have not been paid,
Some Providers offer guarantees on their Plans,
Some providers offer a money back guarantee in case you want to cancel the plan at any stage.
Don’t know where to start ?
If making a will is something you’ve been meaning to get around to, but don’t know where to start, speak to our client advice team on 021 231 7010 or click here and we’ll call you.