Pre-paid funeral plans get a very mixed press in the UK so are they really a good investment? The answer we think is yes as long as you buy from a reputable provider that safeguards your money.
Funeral costs have increased by around 70% over the last 10 years. If you purchase a pre-paid plan now, then whatever the cost of your funeral (in hopefully many years to come) then the plan will guarantee to cover your chosen funeral. You can tailor the plan to suit you and most companies offer different levels of plan starting with very simple cremations to more elaborate ceremonies with several cars for mourners. Most plans do only cover cremation in full and only give an allowance towards a burial because the costs are so much higher for burial plots, so do check into that if you are intending to be buried. Plans can cover funerals of all faiths.
A major advantage of having a funeral plan is that you can plan the details of your funeral in advance making it a lot easier and less stressful for your family. Often families don’t discuss funeral wishes as it is thought to be too depressing, so when the time comes, families are often left second guessing what their loved ones would have wanted. It is likely to be such a stressful and upsetting time for your family and friends, so having a plan in place gives you peace of mind knowing that they only have to make one phone call to the company involved and everything will be organised for them.
People are often worried about their money being safe. Reputable funeral plan providers invest the money from their sale of plans in a completely independent and ring-fenced trust fund, overseen by the Financial Services Agency and with independent trustees. Therefore, the money is safe and cannot be used for any other purpose. When choosing your company check that this is the case. From July 2022 all funeral plan providers will be fully regulated by the Financial Services Agency. This will provide further reassurance as all providers must by then be registered in order to continue trading.
At what age is it best to buy a pre-paid funeral plan? Some companies will accept customers of any age and others only sell to the over fifties. It is of course a personal decision, but as the cost of funerals will only increase and therefore the cost of purchasing a plan is also likely to increase then if you think of a plan as like an insurance policy that will protect you against the rising costs of funerals then there is no reason to delay.
One word of advice. If you do take out a pre-paid plan, make sure you do tell your family of its existence and where you keep it. Store the plan in a safe place with perhaps your will and other legal documents. We will cover the advantages and reasons you should make a will in a future edition of Curnow’s Hayle.
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