Are Funeral Plans a good idea?
Funerals can be expensive, with the average cost of a funeral now estimated at £2,733 according to the most recent consumer report on funeral costs. Therefore, many people worry that when they die, they won't leave enough money for their funeral. As a result. more than half a million people have taken out a funeral plan with one of the six main plan providers. To help you decide whether or not it is a good idea to purchase such a plan, we have listed some of the advantages and disadvantages of doing so.
Advantages of a Funeral Plan.
Undoubtedly, the main advantage of taking out a funeral plan is that you will save your next of kin and family a considerable amount of expense at the time of your death. Secondly, you will save them from having to make difficult decisions about what type of funeral you would have wanted, which of course provides considerable peace of mind for such family members. Lastly, it provides you with the opportunity to take control of a difficult family situation you would otherwise not be able to be involved with, and one which can invoke much controversy amongst key family members. Hilary Fisher, director of Dying Matters, a national coalition raising awareness of death, dying and bereavement said: "Planning and preparation for dying is vital if we are to improve our experiences."
Disadvantages of a Funeral Plan
The disadvantages of purchasing a funeral plan will vary according to which plan provider you decide upon. Some of the problems associated with funeral plans are as follows:
> Many funeral plans do not guarantee to cover all the necessary costs of a funeral, with family members being left with varying amounts of money to pay.
> The cost of a like for like plan can vary by up to 30%.
> Your choice of funeral director will be limited to those specifically nominated by the plan provider, which might impact on the quality of service.
> The components covered within similar priced packages vary, resulting in additional payments being necessary for such things as viewing, removal from the place of death, where the funeral is to start from and the provision of an Urn or collection of cremated remains.
> Cancellation charges can vary from £95 up to £540.
> Some plans incur additional administration or arrangement fees of up to £195.
> Some Insurance based plans known as 'Whole of Life' or 'Over 50' policies can involve you paying more in premiums than the plan can ever pay back. In addition, if you fail to keep up your payments you will receive no refund whatsoever.
Don't dig yourself into a whole over Funeral Plans
This was the headline in an article in the Daily Telegraph on the subject of funeral plans. It also included advice to carefully read all the terms and conditions of any funeral plan policy. The plight of one 89-year-old woman from Perthshire prompted John McFall MP, chairman of the Treasury Select Committee, to look into the issue of funeral plans to see whether more could be done to protect vulnerable consumers. Jonathan French, of the Association of British Insurers said "With whole-of-life products, if you live far longer than you expected when you took out the policy, and you continue to pay out, what they give back will be less than what you put in."
How to make the right decision over Funeral Planning
If you are thinking about making arrangements to either plan or pay for your funeral in advance and would like independent and trustworthy advice about what do next, then please contact us for free expert no obligation advice. We will be able to answer all your questions and provide complete peace of mind over which option is best for you and your particular circumstances, whilst saving you a significant amount of money in the process.
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