Why are more and more people choosing Prepaid Funeral Plans?
Prepaid funeral plans are increasingly becoming an important part of later life financial planning, for the 50+ age group.
Taking out a Prepaid Funeral Plan is the most affordable, secure, and practical way to protect your family and loved ones against rising funeral costs, by simply fixing your plan at todays price. You then wouldn't have to worry about rising funeral costs in the future. It helps remove some of the stress and worry from your family at what is an emotional and distressing time. It not only relieves them of a considerable financial burden, but also spares them the upset and distress of having to plan and organise the funeral and make any uncomfortable and difficult decisions.
The passing of a loved-one is obviously a very stressful and emotional time for family and friends. For those responsible for arranging and paying for the funeral, discovering their loved-one had the foresight to take out a funeral plan goes an enormous way towards alleviating their sense of pain and distress.
When you pass away, not only will your family be provided with all the support and reassurance they could possibly want, but all the funeral director's fees and services will be covered in full... regardless of however much funeral prices may rise in the future.
Rising Funeral Costs
According to the Sun Life Cost of Dying Report 2013, the cost of a basic funeral has risen from £1,230 in 1997 to £4,000 today - an increase of over 225%. Conservative estimates suggest that by 2024 a funeral will cost, on average, between £7,000 and £8,000.
With funeral costs rising far in excess of the annual rate of inflation, it is an unfortunate fact that, for many families, budgeting for a funeral by traditional means may no longer be sufficient to cover the cost. Taking out prepaid funeral plans in advance, allows you to fix the cost of all the funeral director's fees and services at today's prices and protects your family against rising inflation and rising funeral expenses.
Having a funeral plan vs paying the money into a savings account?
A funeral plan offers you a much better option than paying your money into a savings account to pay for your future funeral costs. Since 1997, funeral costs have soared – but interest paid on savings accounts have remained very low. The amount of money, which would have paid for a funeral back then, plus the small amount of interest earned over the years, would not cover the cost of the average funeral today. Your family would be left with a substantial extra amount to find, quite apart from having to access your savings account to pay for the funeral.
If you have one of our funeral plans in place when you pass, regardless of when that will be, or how much funeral costs rise in the future, your funeral directors fees and services are guaranteed to be covered and will never increase. This is because a funeral plan pre-pays the fees and services, and freezes them at todays price. In addition to this, there is also an allowance for 3rd party charges (disbursements) included in all but one of our plans from the outset and this figure is indexed, which enables the allowance to increase annually, to help it combat rising disbursement costs.