Organising a funeral is one of the most difficult and emotional things you can face. A funeral for a loved one is obviously a painful time but it can also prove to be an expensive one. This is why a pre-paid funeral plan has become an increasingly popular solution. Freezing the price while allowing the loved one to plan their day how they want it provides an intriguing alternative but is it all too good to be true? This article will endeavour to weigh up the pros and cons of pre-paid funeral plans to provide further perspective and help you with what will be a hard choice.
What is a pre-paid funeral plan?
Starting with general information about pre-paid plans. It’s a plan put in place to pay for your funeral when you die. This is often paid through monthly installments, though a flat fee is offered if you wish to pay in one lump sum. These plans are often discussed alongside life insurance policies; some (usually more expensive) policies do include funeral plans, though most just pay a lump sum. The discussion around which is better is a tough one and it usually depends on your own personal circumstances.
Pre-paid funeral plans have become more and more popular in recent years due to the attractive nature of getting your funeral ‘out of the way’ so you can focus on the future and the sharp increase in funeral cost over the last few decades. This article aims to provide the pros and cons of a pre-paid plan and make the decision a bit easier as well as alerting you to the potential pitfalls of the plan. Pre-paid plans are often seen as perfect solutions, this isn’t the case but they could be the perfect solution for you.
Pros of a pre-paid funeral plan
- It freezes the cost of your funeral. This is probably the most appealing aspect of a funeral plan. Funeral costs are always on the rise with inflation and the price of a funeral has almost doubled in the space of only 10 years (Source : SunLife). For full transparency, all funeral directors and homes have to make their price listings available to the public.
- The plans offer multiple payment options over long periods often up to 10 years, allowing for easier payment and less panic over funds. For our plans, you can choose to pay in one single payment, or opt for monthly payments, ranging from 12 months (at no additional cost) up to 15 years (dependent on your current age).
- A funeral of someone dear will always be one of the most difficult days anyone can face so taking some of the pressure off and organising the funeral yourself is appealing. It also removes the unease some feel of having to appoint someone in their family or friends to ensure their needs are fulfilled. To many, this is a burden which they are fearful of passing on.
- When planning a funeral, there is always a feeling of ‘is this what they wanted?’. A pre-paid plan removes this feeling and allows you to plan the day how you want it. A personalised funeral is something that is important to many and something we take really seriously at Chamberlains.
Cons of a pre-paid funeral plan
- The plan may not cover all costs. Most plans don’t include the additional items such as flowers and some don’t include the likes of a headstone. If they do include them, these are often more expensive.
- The plan is put in place sometimes long before you actually need it. This is convenient as it freezes the price but it also means that sometimes the plan can fall through the cracks. Make sure that you alert family members to your plan and keep your information up to date if you happen to move house. Your plan can provide further piece of mind but it can also lead to future headaches so be aware.
- A funeral plan means that the payout is limited to your funeral. It’s nice to cover a big expense but it also means that your family will not receive any money unless you also take up a life insurance policy. It’s always worth looking at what you want for your family and whether a funeral plan suits you.
- A funeral plan means you have to face your morality. This can be a good thing in terms of acceptance but it can also be too much for some people, especially if you are advanced in age. It’s always best to talk about it with your family first so it’s not such a huge weight when you are discussing the funeral.
So there are just some of the prepaid funeral plans pros and cons. These plans are as personal as it gets and the good and bad will be largely affected by your circumstances. It is always best to not feel forced into something and have a good understanding of what you are getting involved with before talking about plans.
We hope you found this useful and remember that we provide a personal service dedicated to you. If you need any support or guidance, call us today for a no-obligation chat. A funeral plan is something that must be solely decided upon by you but we will always be on hand to listen and clarify any concerns you have. For more information, please view our detailed guide to funeral plans. You can also view our current options here.
