Every UK senior should know the benefits of a prepaid funeral plan.
Do you?
If you’re at the stage in life when you’re thinking ahead to what you might leave behind for your family, there’s a strong argument for putting a funeral plan high on your consideration list.
That’s because it allows you to fix the cost of your funeral at today’s levels,
at a time when prices are rising. Average funeral costs went up by 121% between 2004 and 2021. Even despite a slight dip in 2021 due to COVID-19, the average cost of a funeral is expected to exceed £5,000 by 2026*.
What’s more, taking control over this aspect of your finances is actually quite straightforward. There’s no need for health checks, lengthy approvals or complex paperwork. It’s something you can do quickly and easily now – from the comfort of home – that will bring reassurance to you and your loved ones in the future.
Many thousands of families are already benefiting from the security and peace of mind that funeral plans can bring.
So what is a prepaid funeral plan?
It’s a convenient way of paying for the cost of your funeral in advance. You can specify a burial or cremation and choose from a range of plans with options over coffins and limousines to transport family. You might also want to add personal touches like a favourite piece of music or reading.
Your plan is typically held on file by a local funeral director and when you pass away, your family just need to contact the plan provider to set it in motion. All the services in the plan should be covered, helping to ease the burden for your family.
What are its benefits to me as an older person?
1. At a time when there is so much financial uncertainty and the increased cost of living is affecting many of us, a prepaid funeral plan offers genuine security. The services in the plan should be provided at the price you paid, regardless of what they might cost five, ten or 20 years from now. And recent changes in the industry ensure that all plan providers are regulated by the Financial Conduct Authority (FCA). That not only means an obligation to maintain a high standard of customer service, sell fairly and deliver good value for money; but also that your plan comes under the protection of the Financial Services Compensation Scheme (FSCS).
2. High inflation – the kind we’re experiencing in the UK at the moment – unfortunately means the cash you have today won’t be worth as much tomorrow. In these difficult circumstances, taking out a prepaid funeral plan becomes one of the few ways you can actually beat further price rises and fight back against higher inflation. Knowing that you’ve fixed the cost of your funeral at today’s prices, where inflation can’t touch it, can be a comfort in challenging times.
3. Having a plan in place and your wishes made clear can also provide peace of mind to your family. They’ll know that when the time comes, they simply need to contact your plan provider to set things in motion. Plus, there’ll be no doubting your preferences. Depending on the type of plan you choose, all the arrangements, from the coffin to the number of limousines you want, from the music you’ve chosen to the readings you love, will be there in black and white. It avoids unnecessary, ‘It’s what they would have wanted’ second-guessing, which may result in additional expense for loved ones left behind. In contrast, specifying your final wishes could prove to be a great source of comfort to them.
4. Just think of the simple practicality your plan offers at a time of high emotion, when your family will want to mourn your passing. Letting them know that everything has been sorted and that your plan is there when it’s needed can help to make life so much more straightforward. Many providers work with trusted local funeral directors or in the case of direct cremations, a crematorium, so there’s no need to handle this aspect yourself. With the practicalities of organising your funeral taken care of, your family will be freed from these tasks, giving them the time and space to grieve and remember you in their own way.
5. Most plan providers give you the flexibility to pay for your plan in monthly instalments or alternatively with one upfront sum. Making payments each month often suits those without a large savings pot to draw upon. It can also help with budgeting, because there’s a set amount to pay each month, which will form part of the agreement you sign with your provider. You should always check the terms however and note that going for the instalment option usually means your plan will cost more in the long run.
You’ve decided that a prepaid funeral plan is right for you. What next?
If, like so many, you’re now convinced of the benefits of planning your funeral in advance, it’s time to choose the provider and the plan that suits you. Most will offer a range of packages, so it’s worth taking the time to compare what’s available, to make sure that the services you want are included.
Options vary from lavish burials to direct cremations (where your body is committed without a service or mourners present) and there’s usually something to suit most needs and budgets.
When you take out a funeral plan, your provider will ask for the details of a nominated representative – someone you know and trust – and send them the plan details. That means, when the time comes, they’ll have all the information they need to contact your provider and set things in motion.
All that remains now is to sit back and relax, safe in the knowledge that your decision to take out a funeral plan today will make your family’s lives so much easier in the future. What a wonderful thing, to support them as you do now, even after you’ve passed.
*Source: www.sunlife.co.uk/siteassets/documents/cost-of-dying/cost-of-dying-report.pdf
