Thinking about your funeral is not the most exciting thing to do. Nevertheless, it’s something you should consider, and sooner rather than later.
The truth of the matter is that funeral costs aren’t getting any cheaper. Prices also vary considerably, depending on where you live. Prices continue to rise which is a good enough reason to start thinking about how you can finance your funeral.
You could choose the best over 50 funeral plan, but there are other options.
How You Can Pay for Your Funeral
You could choose to set some money to one side in savings for funeral costs. Most people paying for a funeral have to find the money from somewhere. Here are some of the options:
- Take out a prepaid funeral plan
- Get over 50s life insurance towards funeral costs
- Agree on a plan with a funeral director
- Use existing assets from your estate
- Draw upon any cash reserves you may have
Can You Pay for Your Funeral Before You Die?
The simple answer is yes you can. You can choose to pay for your funeral in advance through a prepaid funeral plan. This is an option for someone who wants to pay for their funeral in advance at today’s prices.
However, not all UK funeral plans are the same.
What is a Prepaid Funeral Plan
A prepaid funeral plan is an arrangement that lets you pay in advance for your funeral. The amount you pay is based on the price quoted when you take out the plan.
How Does it Work?
A prepaid funeral plan usually covers the essential costs of a funeral director. This might include:
- The coffin
- Care of the body
- Cars and pall-bearers
- The cost of cremation or burial, depending on your preference
It tends not to cover:
- A wake
- Floral tributes
- Headstone
When you pay for your funeral in advance, it may tie you to a particular funeral director or funeral company. This can be a problem if you move in the intervening years. Also, funeral plans can vary a great deal, so it’s important to check everything you want is covered by the plan.
Once you’ve paid the agreed amount (either in a lump sum or monthly instalments), the parts of the funeral included in the plan are covered when you die.
The funeral provider pays the money straight to the funeral director. Your friends or family don’t have to get too involved in the administrative or financial side.
From July 2022, the funeral plans sector has been regulated by the Financial Conduct Authority.
What are the Alternatives?
A prepaid funeral plan is one way to manage the costs of your funeral, but it’s not the only one. You could draw upon existing assets, use Over 50s Fixed Life Insurance, or negotiate a deal with a funeral provider.
Use Your Assets
If you’re lucky, there will be enough money in your estate to cover the cost of your funeral. However, if you want money in your estate to be used to pay for your funeral you should ring-fence it in your will, leaving clear instructions with a solicitor or family members.
The advantages of using your assets to pay for your funeral include:
- You can access your funeral funds in advance
- You can plan your funeral payments carefully depending on your finances
- Your loved ones won’t have to think about funeral costs when they’re grieving
Shop Around
If the idea of paying for your funeral before you die doesn’t appeal to you, there is the option of shopping around. Get quotes from different funeral service providers. See if you can prearrange a fee, rather than prepaying.
If you use a national provider rather than local burial or cremation funeral charges, you could save yourself lots of money.
Over 50s Life Insurance
An Over 50s Life Insurance plan pays a cash sum to your loved ones when you die. These funds can be used to contribute towards your funeral, unpaid bills, or even act as a gift when you’re gone.
There’s also nothing to stop you from having a prepaid funeral plan in place and using Over 50s Fixed Life Insurance alongside the plan. It will help loved ones pay for those special extras such as funeral flowers and refreshments at the wake.
Your loved ones might choose to spend money from a variety of sources to give you a fitting send-off. Over 50s Fixed Life Insurance can leave loved ones with money they can put towards your funeral. Alternatively, they could put the cash to another use, such as buying a small gift.
Of course, thinking about paying for your funeral isn’t fun, but whichever option you choose, you can enjoy peace of mind. You know that you’ve helped your loved ones by making things a little easier for them at a difficult time.