The cost of dying is reported on annually by Sunlife and it is repeatedly reported that the costs associated with dying are increasing year on year. This means it’s important to do what we can to reduce those costs, or where possible, fix those costs at today’s prices.
It’s possible to fix those costs using a pre-paid funeral plan.
What is a funeral plan?
Whilst it’s possible to arrange a funeral post death, it’s often a difficult and challenging time for those left behind. This is why many people are putting a funeral plan in place.
Not only does a funeral plan allow you to share your wishes when needed removing the need for guessing, it also allows you to fix the cost of your funeral meaning that loved ones won’t have to stump up any money.
How do they work?
A funeral plan works by recording what funeral wishes you have, and typically who you would like the funeral to be carried out by (which funeral director). They would typically cover the cost of the cremation, the funeral director’s fees, the coffin, the care and transportation of the body as well as funeral transportation. It is important to note that different plan providers have different plans and some are stripped down plans which only offer the basics. You should also get clarification from the provider about whether these costs are a contribution towards your funeral or whether they are guaranteed to cover the costs. Funeral plans can be purchased from a funeral director, or from an estate planning firm like SLS Wills and More.
How can they be paid for?
There are a number of ways that a plan can be paid for but the three most common ways are:
- Lump sum. If you have the money sat around and would like to battle the rising costs of funerals, then to pay for your funeral in advance can be a great solution.
- To pay in instalments. As with any ‘financing’ deal the cost will typically depend on the risk and the length of time it will take to pay for the plan.
- Insurance Policy. It’s also common to pay for a funeral using an insurance policy or an over 50’s plan.
Why do you need a funeral plan?
As mentioned above, one of the key benefits of having a funeral plan is that in planning in advance, you can remove the stress from loved ones, whilst fixing the costs at today’s pricing.
Are funeral plans a good idea?
If it’s important that you’re prepared and reduce stress for loved ones, then yes, they are a good idea. You simply need to balance this with knowledge of the plans available to you to make sure that they meet your needs.