The benefits to you of pre-paid funeral plans

Sep 19, 2018 | Tony Byrne's View

What is a pre-paid funeral plan? Well, as the name implies, such a plan is paid for in advance of dying.

Between 2011 and 2017 funeral costs increased by an average of 5.45% each year. That’s more than the interest rates on even the best savings accounts. Using this as an estimate for the future, the average funeral cost could reach nearly £5,925 by 2024. So by investing in a pre-paid funeral plan you will have secured what is in effect a tax free investment for capital growth with returns that far exceed those of banks and building societies.

We have reviewed the pre-paid funeral plan market and shortlisted a couple of providers that we recommend. The one we favour the most, Dignity, has plans priced between ÂŁ3,095 and ÂŁ4,135.

These are the benefits of the Dignity pre-paid funeral plan:

  • Guarantee to cover the cost of the funeral director services as outlined in the Funeral Plan;
  • Guarantee to cover the crematorium fee & ministers fees included in your plan;

  • Provide a burial option, including an ample contribution of ÂŁ1,220 towards these services, which increase each year in line with RPI inflation.

  • Allow you to personalise your Plan by adding special requests such as hymns or readings into your Plan. There may be an additional charge for some special requests;

  • Guarantee to provide the services of a compassionate and caring Dignity owned or approved Funeral Director who will provide support and guidance to your loved ones throughout;

  • Offer a choice of payment options. You can choose to make a one-off payment, spread the cost over 12 months with no extra charges or pay over a period of up to 25 years;

  • Guarantee your money is held securely. When you pay for your Prepaid Funeral Plan, Dignity place your money in the independent National Funeral Trust where the money required for the funeral is held until it is needed;

  • Provide your family with access to advice and counselling, should they need it through their 24 hour professional helpline.

We once had a client death where the widow claimed she didn’t have enough cash to pay for a funeral. As it turned out, it wasn’t actually true, but it got me wondering whether or not this could happen and, of course, it could. So having a pre-paid funeral plan in place does make some sense.

I also recall how depressing it was to register my own father’s death with my mother at the GP surgery; then the Registrar of Births, Deaths and Marriages followed by the funeral directors. At least with a pre-paid funeral plan much of the work, will be organised and paid for in advance, so it reduces both the work and the cost. Ever since my father’s death I resolved to offer pre-paid funeral plans to clients.

So there you have it. If you think a pre-paid funeral plan is a good idea why don’t you get in touch with us? You know it makes sense.


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