The Financial Side of a Prepaid Funeral Plan
What are we saving and what are we paying for our prepaid funeral plans?
Any good prepaid funeral plan provider will tell you that the plan allows you to pay for your funeral at today’s rate. Your down payment and instalments are paid on today’s funeral cost, so you will not have to worry about your funeral costs increasing in the future. You will be able to afford the payments and you will have the funeral you have been planning inside your head.
Funeral Costs on a High
One of the greatest reasons that make opting for a prepaid funeral plan as a viable option is the inflation of funeral costs. Funeral costs have been steadily increasing for the past 10 years. The inflation rate has been 7%. It is not unreasonable to imagine a 7% increase every year to and this will mean that we are talking about very significant ongoing increases. The Mintel report of September 2012 estimated the current funeral rates at an average of £3,284. If the 7% inflation rate continues (hopefully does not increase), the estimated cost of a funeral is going to be double what it is today, almost £6,900 by 2023, and £13,600 by 2033.
Do you want your family to be facing that cost in the future when the overall economic conditions may not be good? It would be wise to pay for your funeral at the current affordable price and with the option of instalments if you prefer.
No Extra Costs
If you have a great prepaid funeral plan provider, you don’t have to worry about additional costs. They provide you with a good choice of funeral plans, and you simply select that which fits your needs. This ensures that your funeral director can take care of things as a part of the plan and you or your family will not have to pay for these costs at a time when they have other priorities. This allows them to send you off with fond memories and prayers.
Safety of Your Money
If you are worried about the safety of your money, rest assured that a great plan provider will always give you the option of a refund if at any point in time you feel you want to discontinue the plan. Furthermore, all your funds, including your monthly instalments, will be held in an independent trust fund. That means that, until your funeral, your money remains untouched. For fixed monthly payments, your provider invests the premiums in an insurance fund. This ensures the level of payout at the time of death.
So, if you’re worried about how you would pay for the plan, you may rest assured that obtaining a good prepaid funeral plan through The Will Associates, will take care of everything. We use the largest independent funeral plan provider in the UK, to offer you a variety of plans with different instalment options. The Will Associates consultant will help you decide which plan suits your financial situation the best, ensuring you get the most suitable plan. If taking the instalment option, you can pay a larger down payment to reduce the monthly costs, if you wish. Your instalments on the 12 months option, could be as low as 75p per day.
For any additional information contact The Will Associates by calling us on 0800 9500 700 to arrange a free, no obligation consultation at a time convenient to you and your loved ones, in the comfort of your own home.