Making arrangements for after you’ve passed away may not be top of your list of things to do but with the average cost of a funeral increasing by 130% over the last 16 years, it’s something that should become more of a priority.
Unfortunately, here in the UK the subject of death is still a bit of a taboo topic for many.
The best way to ensure that your loved ones aren’t left paying over the odds for your funeral is to take out a prepaid funeral plan.
Local award-winning life insurance broker, Reassured, are here to provide their guide to funeral plans.
Funerals in the UK – the basics
The average cost of a funeral has risen dramatically over the years. According to SunLife in 2019, the average cost of a basic funeral in the North West of England stood at £3,815. While this may not be nearly as much as you could expect to pay in other parts of the UK, many of us would struggle to find these funds unexpectedly.
SunLife (2020), Cost of Dying Report, sunlife.co.uk/costofdying2020/
With funeral prices only set to get more expensive, it’s important to protect your loved ones from these rising costs. A pre-paid funeral plan allows you to make all the arangements and plan your funeral the way you’d like it whiling locking in today’s prices.
What does a funeral plan include?
With a funeral plan, you can use the help and guidance of your funeral director to help arrange all the essential services involved with planning a funeral. A basic funeral plan will typically include; a coffin or casket, hearse, care of the deceased, visitation for loved ones at the chapel and help with all funeral arrangements. The most basic of services, known as direct cremations, are becoming more and more popular because they are significantly cheaper.
This is just with a basic plan but funeral plans can be more comprehensive depending on which which type of plan you choose. The more comprehensive the plan, the more choice you have with your arrangements.
It’s important to choose a funeral plan that includes third party fees. These are expenses that are separate to the funeral director and aren’t always included in a funeral plan. Typically these include doctors fees, ministers fees and cremation or burial fees.
All funeral plans provided by Reassured include all third party fees so your loved ones won’t have to worry about any unexpected costs.
You can choose to pay for your funeral plan in a one-off payment or you can choose to spread the cost in affordable monthly payments. Once you’ve passed away the funds go straight to your funeral director to cover the arrangements.
How is a funeral plan different to life insurance?
Both life insurance and funeral plans offer financial protection to your loved ones should the worst happen to you.
A life insurance policy will provide your loved ones with a lump sum pay out, which could be used to help cover the cost of your funeral. However, they will end up paying the going rate at the time of your death.
A prepaid funeral plan won’t provide a lump sum. Instead it will allow you to pay for your funeral at today’s prices, meaning everything is taken care of and your loved ones don’t have to worry.
How do you choose the right funeral plan?
With so many options available on the market, how do you know what funeral plan is right for you?
The most important step in choosing a funeral plan is comparing all the options that are available. All plans will vary between providers so you will want to find the most comprehensive cover for a price that’s within your budget.
You could spend lots of time doing this yourself or you could let a life insurance broker, like Reassured, do all the hard work for you, saving time and money.
A broker will compare the options available and find quotes on your behalf, to find you the best price on a funeral plan that meets of your requirements. They’ll also be able to answer any questions and translate any jargon you don’t understand.