Why Select A Funeral Plan Payment Scheme?
How Do Pre Paid Funeral Plans Work And Who Benefits?
Funeral plans are relatively easy to understand as long as you know that the money doesn’t lay around idle for umpteen years, as you can probably do that yourself.
When a funeral plan is taken out you will pay instalments for two to ten years, or a lump sum to one of the major funeral plan providers.
Does A Funeral Plan Cover All Funeral Related Items?
Few of us actually shop properly for a funeral when a death happens, the most commonly known Funeral Director shows up, we may glance and compare prices to start with however none of us go out of our way to truly drill down on all aspects of a funeral properly. We are in a state of shock and grieving.
Essentially a funeral plan does allow us time to choose and compare funeral plan options. For instance if you look at three separate funeral directors and their plan offerings they may have different packages. Coffins will be different styles or made from cheaper to more luxurious woods, then there’s the lining but not all packages and inclusions will be the same.
Without a doubt burial costs tend to be excluded because land rates are so volatile, they increase more than funerals have in relation to inflation. Graveyards and cemeteries experience land lease rate increases as much as anyone else. Each divided into plots so over time increases exponentially.
Some however will contribute to burial costs up to a set sum, as it is a gauge of how much it may be. If a plan is cheaper, consider this to be the reason why. The remainder of that particular amount will be met by the family at the time. Pall bearers and transportation can be written in and paid for but very few deal with additions such as flowers.
Plan Paid. Is That Money Really Safe For Thirty Years?
At which end of the process? It would be fantastic to be 100% sure all of your money is safe and that most definitely calculations will prove correct and all funeral costs will be met absolutely. The funeral plan industry is overseen by the Funeral Plan Authority (FPA) which has set in places Rules and a Code of Practice but not all have to be members.
As for money paid into a reputable trust water marked FPA membership Funeral Director or pre paid funeral plan company, yes in the main very secure. Firstly the FPA audits each company under its remit and checks that trust fund and investments are protected correctly.
Furthermore while the Financial Conduct Authority (FCA) has no direct oversight over pre paid funeral activity, anything that stems from the trust funds to the stock market motivation is, so companies tend to apply both FCA and FPA rules and practices just in case.
Are There Questions That Should Be Asked Of A Plan Provider?
Should You Choose Funeral Assurance Or An Over 50s Insurance Policy?
As explained, there are insurance policies, assurance policies and prepaid plans for funerals. Insurance companies offer a package which is termed the Over 50’s Plan.
It essentially provides for a fixed sum upon your death to either contribute towards a funeral or as a cash sum to a loved one.
Ensuring The Final Plan Is Covered And Known...
- There is little point arranging any kind of funeral plan unless you put details in a Will, put people as next of kins in policies or generally letting family and friends know – or even the local funeral director your family solicitor.
- No matter which plan you choose you will receive a document that is not only a proof of purchase but enables you to update details whenever possible. Put this somewhere safe.
- Any plan provider should have clearly stated terms and conditions, as well as a properly defined complaints procedure. As none of them wish you to turn to CAB, FCA or FPA where they may get into even bigger trouble!
Are There Other Ways To Pay For A Funeral?
Alternatives to funeral insurance and a funeral plan is the traditional way of paying for a funeral that also doesn’t rely on family footing the bill. Take your current and savings account as an example.
You have probably named a family member or relative as the Executor of the Estate. After Probate is recognised and even before, they will be able to access your accounts via the Bank or Building Society and ask for the amount to cover funeral costs. A person can also instruct a solicitor to do likewise in the event of their death.
Inheritance tax can also be a problem in some situations, having a funeral bill deducted from the total will ensure less tax is paid. You may also have your own stocks and shares which could also be sold to pay for a funeral.
helped me to decide that
I didn’t want to leave my kids with that kind of burden.”
Steve Bailey, Hertfordshire