What is a pre-paid funeral plan? – it’s a way of organising your funeral the way you would like and limiting the costs. It really should be part of your financial planning.
There are many providers out there but ensure that there is a guarantee and that the plan covers all that is needed for a cremation or a funeral, so there are no unexpected costs for your loved ones dealing with it.
The cost of a funeral has risen faster than the rate of inflation or savings rates, the average cost in 2014 was approximately £3,500.
Thinking about this type of planning means that the family, who will be upset and not sure what to do next, only have to contact the funeral plan provider and all will be dealt with – no waiting for funds to be released, or probate, which gives everyone peace of mind and comfort to your family.
There are lots of offers which seem to be funeral plans but are in fact insurance policies for which you will be paying regular instalments for the rest of your life, so do check out the small print carefully. The biggest difference with a funeral plan is that you are not just paying for the funeral – a trusted funeral plan provider also delivers a specified funeral too, where you have decided the format of any service or memorial down to the choice of music.
When you pay for a funeral plan the money is placed in either a trust fund or insurance policy, which then pays the funeral director when the time comes. The funeral plan is usually paid for in one lump sum but payment plans are available. Do make sure that the plan is a set price and there are no additional payments to be made.
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