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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 11th Oct 16, 5:00 PM
    • 87Posts
    • 21Thanks
    MSE Eesha
    Prepaid Funeral Plans
    • #1
    • 11th Oct 16, 5:00 PM
    Prepaid Funeral Plans 11th Oct 16 at 5:00 PM
    Hi!

    This is the discussion thread for the



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    Thanks folks ,
Page 3
    • Primrose
    • By Primrose 25th Jun 17, 7:52 PM
    • 7,609 Posts
    • 25,625 Thanks
    Primrose
    It,s all very well people advising us to out the money aside in a separate account rather than paying for a funeral plan but I have no children so if a friend is my executor and has to organise my funeral why should that person have to pay for my funeral expenses out of their own pocket when funeral directors expect funerals to be paid for immediately?

    Putting money aside might mean that an executor can't access it until probate had been granted and that could take months. Surely one of the reasons for paying up front is to avoid this kind of hassle and pressure on the people who have to organise and pay for your funeral?
    • Mojisola
    • By Mojisola 25th Jun 17, 8:01 PM
    • 28,221 Posts
    • 71,788 Thanks
    Mojisola
    It,s all very well people advising us to out the money aside in a separate account rather than paying for a funeral plan but I have no children so if a friend is my executor and has to organise my funeral why should that person have to pay for my funeral expenses out of their own pocket when funeral directors expect funerals to be paid for immediately?

    Putting money aside might mean that an executor can't access it until probate had been granted and that could take months. Surely one of the reasons for paying up front is to avoid this kind of hassle and pressure on the people who have to organise and pay for your funeral?
    Originally posted by Primrose
    If the funeral director sends the bill to the bank or the executor takes it there, it will be paid immediately from the deceased's account directly to the FD.
    • geminilady
    • By geminilady 25th Jun 17, 8:01 PM
    • 1,686 Posts
    • 7,221 Thanks
    geminilady
    Putting money in an account does not guarantee your funeral will be paid for, prices are rising all the time and you might not save enough,The good thing about a funeral plan is even if you die 20 years from now you will only pay todays prices plus you can add your wishes for songs played type of funeral ect.
    • Yorkshireman99
    • By Yorkshireman99 25th Jun 17, 8:06 PM
    • 2,963 Posts
    • 2,319 Thanks
    Yorkshireman99
    Putting money in an account does not guarantee your funeral will be paid for, prices are rising all the time and you might not save enough,The good thing about a funeral plan is even if you die 20 years from now you will only pay todays prices plus you can add your wishes for songs played type of funeral ect.
    Originally posted by geminilady
    Buying plan does not always guarantee that it will cover extra costs over time.Many do not.
    • geminilady
    • By geminilady 25th Jun 17, 8:45 PM
    • 1,686 Posts
    • 7,221 Thanks
    geminilady
    Buying plan does not always guarantee that it will cover extra costs over time.Many do not.
    Originally posted by Yorkshireman99
    Many do and if people read the paperwork they will know exactly what is covered
    • Yorkshireman99
    • By Yorkshireman99 25th Jun 17, 9:13 PM
    • 2,963 Posts
    • 2,319 Thanks
    Yorkshireman99
    Many do and if people read the paperwork they will know exactly what is covered
    Originally posted by geminilady
    And that is the problem! Often the paperwork includes lots of fine print and many don't read it. There are lots of get out clauses in many cases. Twenty year ago when interest rates were much higher than in recent years the companies could earn a good rate of interest and cover the rising costs. Now they cannot do that. Hence they are, in many cases a bad buy.
    • stevepett
    • By stevepett 28th Jun 17, 3:48 PM
    • 78 Posts
    • 28 Thanks
    stevepett
    There are good plans, bad plans and downright awful plans. Some should be banned by the FCA. Independent advice is essential, but rare as hens teeth.

    Very few banks will pay out money if the deceased didn't have £3 to £5000 available. Very few people keep that much ready cash. But the will pay from an ISA etc when you get a grant of probate.
    • Yorkshireman99
    • By Yorkshireman99 28th Jun 17, 5:40 PM
    • 2,963 Posts
    • 2,319 Thanks
    Yorkshireman99
    There are good plans, bad plans and downright awful plans. Some should be banned by the FCA. Independent advice is essential, but rare as hens teeth.

    Very few banks will pay out money if the deceased didn't have £3 to £5000 available. Very few people keep that much ready cash. But the will pay from an ISA etc when you get a grant of probate.
    Originally posted by stevepett
    Simply not the case it seems. Banks don't need probate to pay an undertaker from an ISA. ISA's lose their special status from the DOD.
    • Malthusian
    • By Malthusian 29th Jun 17, 11:41 AM
    • 2,884 Posts
    • 4,120 Thanks
    Malthusian
    Some should be banned by the FCA. Independent advice is essential, but rare as hens teeth.
    Originally posted by stevepett
    The FCA doesn't regulate funeral plans. Which is another reason not to buy one. Not that you are especially at risk of being scammed via a funeral plan, more than it illustrates that they are no good as an investment. They are in the same category as Christmas saving clubs (also not regulated by the FCA, which is why the victims of the Farepak collapse lost most of their money).

    Generalisation alert: anyone who retains an Independent Financial Adviser is very unlikely to take out a funeral savings plan. They will have enough savings and investments that the risk of not having enough money when they die to pay for a funeral will be virtually nil. And their savings will be invested which will help counteract the rising cost of funerals.
    • LiaE
    • By LiaE 8th Aug 17, 6:08 PM
    • 1 Posts
    • 0 Thanks
    LiaE
    Protection
    If a company was to go into liquidation if you paid your prepaid funeral plan in full via credit card would you not be protected by that so you don't lose your money?
    • Yorkshireman99
    • By Yorkshireman99 8th Aug 17, 7:03 PM
    • 2,963 Posts
    • 2,319 Thanks
    Yorkshireman99
    If a company was to go into liquidation if you paid your prepaid funeral plan in full via credit card would you not be protected by that so you don't lose your money?
    Originally posted by LiaE
    Probably. Such plans should be backed by insurance and the funds held in escrow so they don't get swallowed up in such a case. Even so they are a bad deal.
    • suroben
    • By suroben 15th Sep 17, 1:30 PM
    • 27 Posts
    • 61 Thanks
    suroben
    Many years ago my mother-in-law took out one of these policies with the Co-op. Fortunately we found the paperwork in time to do as she planned and everything went off without a hitch. The most important thing to do if you have such a plan is to tell your relatives or friends. We could easily have paid for everything and held the funeral before going through her papers.


    I'd advise reading the small print and getting everything in writing but really don't understand how paying for a funeral plan at todays prices and having the funeral many years later can be the really bad deal Yorkshireman99 suggests. After all, it's not as if you can invest your money and rely on high interest rates to boost your savings enough to cover a future funeral.
    • Jenniefour
    • By Jenniefour 15th Sep 17, 2:15 PM
    • 1,098 Posts
    • 1,066 Thanks
    Jenniefour
    Many years ago my mother-in-law took out one of these policies with the Co-op. Fortunately we found the paperwork in time to do as she planned and everything went off without a hitch. The most important thing to do if you have such a plan is to tell your relatives or friends. We could easily have paid for everything and held the funeral before going through her papers.

    I think pre-paid funeral plans were possibly more reliable many years ago. But things are changing/have changed, the industry is no longer operating in an entirely ethical manner and a lot more attention is being paid to how to make profit before any funeral director is involved.

    But, yes, if there is such a plan very important to let family know.



    I'd advise reading the small print and getting everything in writing but really don't understand how paying for a funeral plan at today's prices and having the funeral many years later can be the really bad deal Yorkshireman99 suggests. After all, it's not as if you can invest your money and rely on high interest rates to boost your savings enough to cover a future funeral.
    Originally posted by suroben
    It's not about setting aside the money, which, as you say, can't be spent anyway. It's about trying to make sure the money is safe and will definitely be available when needed. The funeral pre-payment industry is not regulated, there is no protection and there are very serious concerns being aired now about how many of them might go bust (when people will find out there is no funeral paid for after all, money is gone), and how much money is siphoned off for commissions. Funeral directors themselves are raising concerns about this. It is probably going to be one of the more public scandals in years to come. I wouldn't dream of using one or recommending one either. Much safer to put the money into a saving account/ISA - because banking is regulated and the money will be there.

    No amount of checking the small print is going to provide any protection against these firms going bust.
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