Funeral Plans : A waste or a good investment?

SO171NOT

Can people please advise on the above?

dunstonh

Its good if you have financial dependents who would be financially worse off in the event of your death.

dwsjarcmcd

If people can get past the emotion, then I think they are a good thing. Firstly you can (more or less) fix the cost at todays price, have a say in your funeral and most importantly take most of the stress of organising a funeral from your dependents.

dunstonh

are you on about pre-paid funerals or funeral expenses plans?

Ted_Hutchinson

If you are eligible for means tested benefits then they are usually a good thing.

Setting aside £2000 in a savings account to pay for your funeral could if you this brings your savings to over £6000, reduce your means tested benefit by £4 a week, if you were at or about the lower capital savings threshold. The Pensions Service count £1 a week as income for every £500 or part of £500 over £6,000 you have in savings. (For care home residents the first £10,000 of savings ignored.)

Buying a funeral plan isn't regarded as intentional deprivation of capital, nor does that plan count as part of your capital. So anyone wanting to reduce their capital to enable or improve a pension credit/hb/ctb claim a funeral plan is very sensible, providing it is with a firm such as the Co-op or one where you know the standard is likely to be what you want.

SO171NOT

dunstonh wrote:

are you on about pre-paid funerals or funeral expenses plans?

I was talking about Pre-paid Funerals

Bossyboots

You need to be careful what you choose. A friend's relative died and the plan he had taken out was appalling. The list of funeral directors did not include anyone local and they refused to allow anyone to pay their respects or accept flowers. Fortunately there was a clause in the plan that if it was not used a refund could be paid so they got the money back and went someone nearer home that had a bit more respect for the deceased and the family.

My mum was visited by Royal London to try to get her to take out a plan. This was the same thing. Limited choice of funeral director and no-one local.

If you have a co-op funeral parlour near you, they might be worth looking at as I have heard that their's are among the better ones.

dwsjarcmcd

Bossyboots wrote:

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If you have a co-op funeral parlour near you, they might be worth looking at as I have heard that their's are among the better ones.

I agree, the Co-op and also Dignity should provide the quality of cover and the coverage of undertakers

System

I have thought about this myself but i would worry in case the funeral parlour went bust. I dont fancy paying out twice.

Bossyboots

Judi wrote:

I have thought about this myself but i would worry in case the funeral parlour went bust. I dont fancy paying out twice.

I am sure the good ones are protected by a bond so it doesn't matter if the company goes bust, your money is protected although you would get a refund, rather than the funeral you had already planned. If that is wrong hopefully someone will correct me but I am sure I read that on one of the plans I was looking at.

dwsjarcmcd

Bossyboots wrote:

I am sure the good ones are protected by a bond so it doesn't matter if the company goes bust, your money is protected although you would get a refund, rather than the funeral you had already planned. If that is wrong hopefully someone will correct me but I am sure I read that on one of the plans I was looking at.

Although funeral plans are not regulated, the money invested is protected by either a bond or from within a with profits fund