Pros and Cons of Pre-Paid Funeral Plans

Peterthemole

It makes no sense to me to pay for something like this up front. If the concern is about your nearest and dearest paying out what they can't afford then 'ringfence' the money. Undertakers never go out of business, they have an endless supply of customers, relatively few overheads and little requirement for a huge stock level.

PennyForThem_2

I learnt recently that as long as there is money in an account to cover a funeral then the bank will pay against an invoice from the funeral home. It is seen as an expense of the estate, so even if the account is 'frozen' until probity is granted, a funeral bill can be paid.

I thought about a prepaid plan but I think I will set out my wishes in detail - it is the planning and uncertainty that is the problem, I think.

Old_Git

If you end your days in a nursing home ,you may have little money left .
If the funeral is prepaid there will be a few thousand left ,you will still be dead .

Mojisola

Peterthemole wrote: »

It makes no sense to me to pay for something like this up front. If the concern is about your nearest and dearest paying out what they can't afford then 'ringfence' the money. Undertakers never go out of business, they have an endless supply of customers, relatively few overheads and little requirement for a huge stock level.

This isn't easy if you're on means tested benefits.

This was the main reason that my parents chose to buy plans. They were allowed to have £6000 in savings before their benefits were affected.

By buying the funeral plans, that money was set aside and they could then save so that, for example, when the OTs decided they needed a stairlift and were entitled to a grant but would have to wait 18 months for one, they were able to buy one themselves. If their funeral money had been part of their £6000 savings, they wouldn't have bought the stairlift because it would have left them short in the funeral fund.

Sweey_as_a_nut

I wrote about my experience on here a few years ago, it goes two friends of mine paid for a funeral for themselves and their wives 12 years ago cost £1.000 for each funeral. When they told me I had a good laugh. Nearly two years ago my wife died. Cost £3.300 a month after that I paid for mine cost £2.700 I don't want trimmings, in all cases cremation. They still rub it in when ever the chance presents itself. buying insurance is not the way to go especially these days.

nellykim

scotsbob wrote: »

You may not pay in more but loss of interest has to be considered.

If you pay £2,000 into a plan at 60 and died at 75 then you may have been better to have invested at 5% because it would be worth £4158 with compound interest. Or play safe and use index linked savings certificates.

Indeed anyone considering burial can do their own advance planning and purchase a lair now. Local councils are bound to increase costs over the next few years.

( my bold )...but you'd be dead, so would it matter... I am being serious here, not flippant.

I have just read another ad in the Mature Times, dated November 2012 stating Funeral Costs could be arond £4194, by 2016, and am wondering if this could be a good thing ( to buy a Funeral Plan NOW ? )

pjb2u

this forum is quiet...

alcoplop

My inlaws had arranged a plan for themselves with a well known company, until they died I didnt realise what a bonus this was. The company took care of every thing and were extemely supportive, I have looked over the past few years at setting one up for myself and my huisband, and have been surprised at how much the cost has increased. this year we intend to purchase one each if only to support our children when they have to arrange ours.:A

baz1234

alcoplop wrote: »

My inlaws had arranged a plan for themselves with a well known company, until they died I didnt realise what a bonus this was. The company took care of every thing and were extemely supportive, I have looked over the past few years at setting one up for myself and my huisband, and have been surprised at how much the cost has increased. this year we intend to purchase one each if only to support our children when they have to arrange ours.:A

if you know which directors your family works with your choice is easy, the financial benefits are obvious only if it is affordable for you now

Biggles

pjb2u wrote: »

this forum is quiet...

Funereal, you might even say.