The rising cost of living is putting a big strain on people’s finances, so many people are starting to look at other ways of saving.
Prepaid funeral plans and funeral packages are a way of paying for a funeral over time, in advance. It can cover as many costs as you like depending on the package you choose, such as the coffin, cremation and transport.
And with funeral costs rising, people may choose to do this to avoid paying more in the future.
However, it’s key to note that not all plans will cover all of the costs so it’s important to verify what is included before making a final decision.
This article will look into the pros and cons of funeral packages to help you decide whether it’s suited to your circumstances.
Table of Contents
What Is a Funeral Package?
With a prepaid funeral plan or funeral package, you can pay for certain elements of your or someone else’s funeral in advance.
With this in place, your loved ones won’t need to worry about paying a huge amount once you die. You can also make decisions about your own funeral, such as the coffin you would like and burial decisions etc.
You can take out a funeral plan if you’re over 18, however, some providers won’t accept those under 50. You may also find some providers only accepting people over 80 if they’re wanting to pay with monthly instalments.
Funeral Plan Benefits
There are many reasons why people may want to prepay for their funeral, with the main reasons below:
You’ll Pay Today’s Cost, Even If Prices Rise
The main selling point of a funeral plan is that no matter how much funeral costs rise, you’ll still pay the original price. So, if you buy a plan that is £2,500, but you die 10 years later and prices rise to £4,000, the cost of your funeral will remain at £2,500.
This is because funeral plans do not rise with inflation. But again, remember to check what is included in the plan. Anything not included in the plan will need to be paid at the current price.
Extra Protection
On 29th July 2022, extra protection was given to prepaid funeral plans to ensure the safety of your money. This means that even if a provider goes bust, you are guaranteed to get a funeral or a refund. However, if you die within 24 months of buying a plan, the provider won’t have to pay for the funeral, but you will get a refund if this happens.
Choose a Package Suited to You
There are a range of packages to suit your financial needs, from basic to more high-level plans. This way you can decide what you can afford and make sure you get what you want from your funeral.
Funeral Plan Cons
Of course, these plans aren’t perfect. Everyone who could have one would if that was the case. But what are these so-called ‘negatives’?
Not Everything Is Included
It’s worth remembering that a funeral plan won’t include every single cost of a funeral. Things like burial plots, headstones and more aren’t always included in the package. It’s vital to double-check everything that is included before making a final decision.
The following will usually be an additional price, but it’s worth checking with your provider:
- Burial plots, which can sometimes be thousands of pounds
- Headstone
- Embalming
- Accessories like catering, flowers etc for the wake
- Funeral notices
- Order sheets
The following can sometimes be included, but it will depend on the provider:
- Travel like limousines
- Crematorium fees
- Doctor fees
- Minister’s fees
If You Move, You Might Need to Change Directors
When you sign up for a funeral plan, you will need to choose a funeral director to go with. However, if you move to a new location, you may need to change to your new local funeral director. Some providers may charge for this change.
It’s Cheaper When You Pay Upfront
If you have enough to pay for your funeral plan upfront, then it’s worth going for. You’ll then know your funeral is paid for when the time comes.
If you’d rather pay for it in monthly instalments, it’s likely to cost you more due to interest. Also, if you die before paying up to 24 months, you may get a refund instead of the funeral you wanted. It’s key to keep this in mind when looking for funeral packages.
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