Today post is about a bit morbid subject but as a motorcycle rider this is something I need to look at and consider ‘ just in case’ the worst was happen.. so lets find out more about funeral plans?
Funeral plans have been around for quite a time – even the Romans had a version of them in their so-called “burial societies”.
The idea is a simple one, that ensures you receive the send-off you intended when you die – a cremation or a burial, with the service and funeral director of your choice.
Funeral plans today
In today’s financial climate, funeral plans have become even more important and attractive, since they offer a way of paying for the arrangements you make in advance, at today’s prices.
It is an important consideration in light of the runaway inflation that seems to have hit the costs associated with conducting a funeral in recent years.
According to the latest annual Cost of Dying Report compiled by insurers Sun Life, the average funeral in the UK now costs more than £4,000 – a sum which has increased by more than 70% in the past decade and keeps increasing, far more than the overall rate of inflation and three times the increases in house prices or averages wages.
As well as this, the cost of the funeral alone is not the only thing you will need to consider. There’s also professional fees and send-off costs that must be added to the equation.
Send-off costs are on the increase
Send-off costs relate to any extra fees that help turn a basic funeral into something more personal. In previous years these costs have stayed mostly the same. However, the latest report by Sun Life shows that in 2019, these prices sky rocketed by 11.9% (their highest level to date).
These costs (on average) include:
- Flowers – £184
- Catering – £408
- Venue hire – £245
- Memorial – £910
- Limo hire – £313
- Order sheet – £88
- Death notice – £82
The cost of your funeral will also depend on where you are located. People living in London can expect to be spending over £5,000 on a funeral, while prices in Northern Ireland are the lowest at just over £3,000. This can be seen on the infographic below by award winning life insurance broker, Reassured
How funeral plans work
If the trend continues like it has over the last 10 years, funeral prices are set to be even more expensive in the future so there is a huge benefit in paying for those final arrangements at today’s prices – rather than when the time comes around.
And that is precisely what a prepaid funeral plan offers – pay for them now, and the lion’s share of all funeral costs (namely the fees charged by your chosen funeral director) are guaranteed to hold good until the time is needed and the services you ordered are delivered.
Furthermore, some funeral plans also guarantee your cremation and ministers’ fees at today’s prices, whereas others offer a fixed cash contribution towards them.
Many prepaid plans also offer a variety of ways of making the advance payment for your funeral – from a single upfront cash payment, to monthly repayment plans spread over one, five, ten, or even 15 years.
Safeguarding your payment
Although your local funeral director may also offer options for the prepayment of your funeral arrangements, you may be in some difficulty if the firm goes out of business in the interim.
That is why many national providers of prepaid funeral plans register with the Funeral Planning Authority (FPA). The FPA which operates a strict code of conduct requiring its members of place any funds paid in advance to be deposited in an independent trust fund or applied for the purchase of a whole of life insurance policy which pays out the required cash benefit when you die.
FPA members also pledge their best efforts in finding an alternative firm of funeral directors in your area if the firm you originally chose goes out of business.
Some funeral plan providers may even offer plans which extend cover not only to the UK, but also to selected European countries which prove popular for British retirees or those that have a second property.
While your funeral may not be something you want to think about, I hope this article has helped you to see that a funeral plan is a great investment. By preparing for these things now you will be relieving your loved ones of unnecessary financial stress at an already stressful time.
Give yourself and your family piece of mind with a prepaid funeral plan.