Prepaid Funeral Plans – Pros and Cons

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When the time comes to consider the best ways to plan for your future, it can be tricky to decide the right product and provider for you and your family.

When the time comes to consider the best ways to plan for your future, it can be tricky to decide the right product and provider for you and your family.

With more than 1.3m plan holders in the UK, prepaid funeral plans remain a popular option.

As the UK’s most trusted funeral plan provider and more than 25 years’ experience, we know a thing or two about the pros and cons of purchasing a plan.

A funeral plan may not be the best option for everyone, depending on your financial circumstances and how you are trying to help your loved ones. But for many funeral plans are worth it - providing the ideal solution for controlling your funeral costs by paying in advance and protecting your loved ones from picking up the bill when they leave this mortal coil.

Here, we discuss the advantages and disadvantages of choosing a prepaid plan to help you decide whether funeral plans are a good idea for your needs.

To find out more about funeral plans, for advice or to get a free quote, you can get in touch with our friendly team on 0800 014 9112 or enquire online.

Pros of a prepaid funeral plan:

Future-proof your funeral costs

One of the most popular reasons to plan your funeral in advance is to freeze the essential costs of your funeral at today’s prices.

The cost of a funeral has been rising year-on-year above the rate of inflation. According to the latest Cost of Dying report and Avalon’s projections, the price of a basic funeral could rise to over £9,500 by 2035. This means that should you need to organise a funeral at the time of need in the future, you could end up paying a substantial amount more for the same services.

With plans starting at just £1,895, fixing your prices today could be a savvy financial move.

The Avalon Promise has you covered.

If you were to pass away before your Avalon plan is fully paid, the Avalon Promise can still provide all the services outlined in your plan. We’re the only provider that works with local independent Funeral Directors to offer this peace of mind.

Find out more about the Avalon Plan here.

 

Your money is protected

When you purchase a prepaid plan, the money you pay for your funeral will be held securely in an independent trust until the time comes for it to be used.

By holding funds in a trust, this ensures that your money is safe even if something were to happen to your funeral plan provider.

Record your wishes in advance.

According to the latest Cost of Dying report, less than 1% knew all their loved one’s funeral wishes,  meaning when the times comes, then may not get the send off they would have liked.

With our latest research showing that the traditional funeral is going out of fashion in favour of more personalised services, this can also put a lot of stress on loved ones when it comes to organising the funeral.

As part of your funeral plan, you will be asked to record any personal requests for your funeral. This can include your choice of music or hymns, dress code and more, to ensure your send-off is right for you. One call by your next of kin when the time comes, and our team will set these requests in motion for you.

Bright colours funeral

37% of people now want mourners to wear bright colours at their funeral

 

No Medicals or Health Checks

You’re guaranteed to be eligible for a funeral plan if you are over the age of 18, regardless of your state of health.

Flexible Payment Options

Depending on your circumstances, choose to pay for your funeral plan in a lump sum or spread the cost over several years with monthly payments.

Your plan may be transferable

In most circumstances your Avalon plan can be transferred to a loved one if needed. For example, should your spouse or a parent pass away before you, you can use your Avalon plan to arrange their funeral. If you wish to re-cover yourself, a new plan will need to be purchased.

Speed of pay-out

When an Avalon plan holder passes away and our team are notified, the services guaranteed by your plan will have already been paid for meaning that your Funeral Director can begin the organisation process without delay.

This is different to an insurance policy, where your beneficiaries will be sent a cash lump sum. However, this could take anywhere from several days to several weeks, or even months, to process and transfer the money – especially if there are complications.

Most banks will allow funeral expenses to be paid for using the deceased person’s bank account, providing it is in credit, on presentation of the Funeral Director invoice. If you intend for your family to use your funds this way, always check your bank or building society’s terms and conditions beforehand.

Your money back if you need to cancel

Should you need to cancel your plan for whatever reason, you will often receive back all monies you have paid into you plan, less a cancellation charge. Your provider’s terms and conditions will explain their cancellation policy.

This is different to an insurance policy, where you are unlikely to receive any refund if you were to cancel your policy.

 

Cons of a prepaid funeral plan

Funds are only for your funeral

As mentioned above, the money which is kept in trust to pay for your funeral is paid directly to your Funeral Director at the time of need.

If you are also looking to leave a cash sum for your loved ones either through your savings or a type of life insurance policy, you will need to make your own arrangements, often through your will.

Not a regulated industry… yet.

Unlike the majority of financial sectors, the funeral planning industry is unregulated, which may put some customers at risk.

However, funeral plan providers can voluntarily register with the Funeral Planning Authority (FPA), an independent body whose members must adhere to a comprehensive code of conduct. This ensures their customers are provided with the highest level of service and have somewhere to turn if they need advice or to raise a complaint.

Plans for the Financial Conduct Authority to regulate the industry are progressing, with several FPA members including Avalon welcoming the change, which should block rogue providers from operating and raise the bar on quality customer care.

If you are considering purchasing a funeral plan, it is essential to check your chosen provider is a member of the FPA.

Does a funeral plan feel like the right choice for you? Find out more.

If you feel that a prepaid funeral plan could be a ideal way to fix your costs, arrange your wishes and protect your family, our team are here to help.

For advice on the right plan for you, or to get a free quote, speak to our friendly advisors today on 0800 014 9112 or enquire online.

 

About the Author: Charlotte Moore is a writer and journalist based in Manchester. She has over 4 years' experience writing within lifestyle, technology and finance. Find her at www.girlonfilm.co.uk and Studio Sonder