The Absolute Best Way To Compare Funeral Plans
There are plenty of financial guides on how to compare funeral plans that claim to be the best way, perhaps they are not really as far reaching or really understand the point of view of the person when purchasing. Though they should as they are recommending paid funeral plans.
Compare Pre Paid Plans Upon Price - Not On Your Nelly
See below. It’s not correct to compare this type of product based upon price first, you are falling into the plan provider’s trap. Would you buy the same car based on the cheaper price alone without looking under the engine? Of course not, you need to know a complete breakdown of costs and instead what the future holds. So forget about the cheapest funeral plan for the moment.
The Absolute Truth About Funeral Plans And Yes I Might Get In Trouble
Even the cheapest funeral plan is provided by a financial institution or a company motivated by increasing their own income. You will not find many funeral plan comparison websites stating that. Not even the ‘Avoid Comparison Websites’ articles truly dig this deep.
Why? Because the providers are called Choice – to give you absolutely tailored and bespoke plans. Or Pride, because they believe in excellent customer service, a higher standard of after care and bereavement support which is agreed is very important.
Ultimately however the monthly payments you pay to them earn you and the company interest. The money is ring fenced either by a Trust Fund which ‘guarantees’ your money is safe by way of the Funeral Planing Authority (FPA) or via a wider investment plan covered by the Financial Conduct Authority (FCA).
Outside of this, if they invest £0.24p a year in the Bing Bang Bong Company in a very low risk fund as stipulated by FPA, FCA and whichever other alphabet soup organisation, they may make £2.40. Meanwhile they shave a bit off and put £0.02p of that in your account to match any inflation rate rises and the cost of the final funeral plan which will be required at the time of need. The figures are not exact but doubtful they’re far wrong.
The Wise Old Owl Choosing His Own Funeral - Almost 360 In View
Is this good or bad? This is for certain, it’s a lot better than a whole of life plan.
And it’s probably a lot better than a savings account or a person trying to bet on the stock markets themselves.
Did you know that some life insurance packages get you to pay what appears a nominal weekly sum… until you are aged ninety!?!
This means as insurance cover you could pay much more than what you’d receive as a valued and worthwhile product.
If you saw a car for £250, would you get finance for £1000 over a ten year period?
The important element to understand is insurance companies, financial institutions and yes pre paid funeral plan companies exists to make money BUT ALSO to provide a service.
The service is important as is what is contained in any package. These companies are reputable, annually reviewed, audited if members of the FPA and most certainly profitable.
That’s good news for everyone. Wouldn’t it be great to call up all companies and ask for proof of their trust fund performances?
That in my view is the best way to compare a pre paid funeral. The financial operation behind the scene. In fact I’d bet that this information is available somewhere.
...And that's why I've taken out a prepaid funeral plan… So, when I go, my family can give me a dignified send-off without worrying about the cost."
The devil as they say is in the detail. Let’s talk disbursements, across this website there are perhaps a dozen to twenty UK and European providers, some target plan buyers but are actually life assurance packages and this is stated on the relevant pages. Disbursements are classed as cremation fees or burial fees, ministers fees and doctor’s fees.
The Blatant Hiding Of Funeral Provisions In Plain Sight
Oh aren’t they naughty?
Plan A, Plan B and Plan C have all very diligently listed which each of their plans contain.
Though the first doesn’t include disbursements, the second only contributes £1,000 towards them and the third has actually suggested, “well let’s put it this way, we’ll offer to pay Minister’s fees, we don’t mention Doctor’s fees but we definitely don’t include burial fees.”
All three are obviously categorised by disbursements.
The problem between the three plans is the ability for a funeral plan comparison website to compare funeral plans properly. How is it possible to do when there is so much ambiguity.
The plan provider isn’t telling fibs, they told you straight what they’re offering, even on their website you’ll find terms and conditions for each policy which goes into greater detail.
The Roulette Wheel And 46 Black
Now it’s time to go in for the kill.
Actually this part is rather fun. The finer details can often be found within each provider’s funeral plan FAQ.
- “What happens if I die while still making premium payments?
- Can I transfer the policy?
- What if I want to cancel the plan?”
“Cancel, cancel? Off with his head… actually don’t do that, we’d have to pay out early!”
Don’t worry the plan is set to pay out but preferably after they have met their needs too. The Cancellation fee. Why is a fee necessary? There are a few ways a pre paid company makes money – another way – the first is to have a trust fund and invest, the alternative is to take a policy out on your life to cover the expected sum when the funeral plan is required.
There is often a stated cooling off period where no one does anything but contemplate death and life and taxes. This could be 14 to 30 days. After this period the plan company sets everything in motion. Once complete it then costs them money to cancel everything.
Hence how they will charge you £500 in cancellation fees. This is yet another best way to compare funeral plans. The fees.
One plan does not charge any cancellation fees because even if you do they won’t return you full payment or any premiums made. Quite simply they state any funds provided will be kept in trust until a time of need. Whether it’s part of the fund or all of the fund.
This is a situation they are quite up front about and is a good scenario. It still has cash value unlike another life assurance product where you’d simply lose all the money you paid.
Have you noticed how you cannot compare a pre paid funeral plan based upon price alone?
- Ask for proof of how their funds operate and increase a plan to best cover for disbursements.
- Find out which disbursements are covered.
- Also ask exacting questions about cancellation fees ad how monies are divvied up in all events.
Then Can We Compare Funeral Plans?
Now is the perfect time to decide whether to have a basic coffin or one made of gold with bells and whistles. In fact now is the time to order a tradition horse drawn hearse, have ten limos for the extended family and place an amount of £5000 as a charge for third party costs and additional wish list elements, such as brass band, buffet and a drive past the favourite football ground.
The type of plan and how much it costs of course matters, integral however is what is detailed.
The plan must also meet the rising cost of inflation and if both trust fund, investment practices, the funeral company and the funeral directors are all covered and preferably members of the FPA, FCA and various funeral trade bodies.
helped me to decide that I didn’t want to leave my kids with that kind of burden.”
Steve Bailey, Hertfordshire
Every policy from Wills to Mortgages to, well, I guess aside of Marriage, can be adapted to include other people.
It could actually be termed The First To Die plan, however awkward that may sound upon first hearing.
You can buy family funeral plans that cover the first to die.
It’s a bleak attitude but when considering financial planning it does save the awkward rush to find the money for a funeral.
You can also buy two funeral plans at the same time. You may be lucky to get a discount – it’s not a marketing tactic that is not deployable.
Effectively every Married couple and Civil partner and people who live together long term as friends can have a joint funeral plan which can cover the cost of one funeral or both.
A group of friends down the pub can draw up a similar legal document and simply start monthly payments towards a joint pre paid funeral plan at the next round of drinks.
It really is that easy to cater for legal documents and pre paid funeral plans for couples and groups.
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