Financial Advisor

Why a Funeral Plan is an Intelligent Financial Decision

funeral plan

A Funeral Plan enables you to protect your family and friends from the financial and emotional difficulty of preparing a funeral.

A funeral plan provides an easy avenue for planning ahead and allows you to make your choices for the day and pay for the funeral based on the current prices. With a Plan, you can slacken knowing that everything is covered for, and you and your loved ones will be protected from the fluctuating costs. Not only does prepaying your funeral put you in control of your concerns but it also gives you and your relatives a peace of mind during an already difficult and emotional time.

churchThe vast majority of people perceive that they have funeral expenses catered for by savings, a life insurance or other means. However, with the steep increase in funeral expenses not to mention the rise in coffin prices and low interests rate, there is no assurance that the costs will be covered, and family members will have to make up the difference. Funeral Plans let you organize your funeral arrangement ahead of time, stipulating your wishes and taking care of the expenses at today’s costs. You can as well make your ultimate plans clear by including a professionally drafted Will to your plan.

Funeral costs have drastically risen by almost 6% in the last ten years, outdoing the rate of inflation.

The standard cost of a funeral in 2004 was £1,920, and by 2014, it had risen to £3,609 recording a tremendous increase above inflation.

By 2024, the standard cost of a funeral could be over £6800. Rising beyond the rate of inflation, it is a trend that seems to continue as a result of aspects like the increase in coffin prices, unavailability of fairly priced land for cemeteries among others. With such rising figures, freezing your costs to the current prices through a prepaid funeral plan is a smart idea. A plan guarantees that there will be no additional costs to pay for the services included when the time comes, despite the increase in funeral expenses in the future.

Many plan providers offer three levels of service in their types of plans. Comparing funeral plans can save you a significant amount of money and helps in selecting the right one to suit your needs. The types of plans offered differ with the coffin prices, quality of coffin and if a Limousine is included for relatives and friends. The plans include an allowance for third party costs like disbursements which comprise of burial fees or cremation and the minister’s charges.

Couple Retired planning for there funeral

A Funeral Plan is fixed at today’s costs, so you will be safeguarded against future increases and the rise in funeral costs like coffin prices hence taking a plan assures that the services will be paid in full regardless of any interim increase in funeral expenses. Not only do you protect yourself against inflation and rising funeral costs, but a Plan also protects your loved ones by reducing stress and difficulties that come with organizing a funeral.

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