Is paying for funeral plans & new life assurance seen as deprivation of capital?

luminated

I have been reading about funeral plans on the over 50's board and thought they seemed a good idea to save being a financial burden to your family when you die. But if me and my wife both bought one at £3,000 each would that be seen as deprivation of capital? If we spent this money it would put us immediately in a position where we would be entitled to HB and CTB.

Similarly if we started new life assurance policies would the extra monthly expenditure, from our household budget, be viewed as deprivation? The current policies run out soon and we will both be without cover and so are looking at something like 10 year level term cover.

All help would be appreciated and thanked.

dseventy

luminated wrote: »

I have been reading about funeral plans on the over 50's board and thought they seemed a good idea to save being a financial burden to your family when you die. But if me and my wife both bought one at £3,000 each would that be seen as deprivation of capital? If we spent this money it would put us immediately in a position where we would be entitled to HB and CTB.

Similarly if we started new life assurance policies would the extra monthly expenditure, from our household budget, be viewed as deprivation? The current policies run out soon and we will both be without cover and so are looking at something like 10 year level term cover.

All help would be appreciated and thanked.

Its all about reasonableness and down the decision maker.

My question would be, these plans are available on a "pay monthly" basis (or they were), why can't you do it that way?

D70

jay1181

dseventy wrote: »

Its all about reasonableness and down the decision maker.

My question would be, these plans are available on a "pay monthly" basis (or they were), why can't you do it that way?

D70

Hi i have just done that from my 89 year old grandmother and the total if you paid up front was £3583 but if you wished direct debit it went up to £4321 which worked out very expensive . The plan was with the co-op care. The prices were different but the plan the same its shocking how much these cost now even for a basic one.:eek:

luminated

dseventy wrote: »

Its all about reasonableness and down the decision maker.

My question would be, these plans are available on a "pay monthly" basis (or they were), why can't you do it that way?

D70

I have only just started thinking about these plans. Something I would rather not do but I guess I must whilst my brain is still working. At 63/62 we don't feel we are about to need a funeral but!!!!!!!!!

But even on a 'pay monthly' basis I wonder if the DWP see this as a none essential spend and a deliberate attempt to reduce my savings sooner than otherwise?

luminated

jay1181 wrote: »

Hi i have just done that from my 89 year old grandmother and the total if you paid up front was £3583 but if you wished direct debit it went up to £4321 which worked out very expensive . The plan was with the co-op care. The prices were different but the plan the same its shocking how much these cost now even for a basic one.:eek:

Thanks for the reply.

Can I ask something? If you pay monthly and (so sorry to say) if your grandmother passed away would you still owe the balance of the full sum £3583 or is it like insurance where no more to pay?

poppasmurf_bewdley

jay1181 wrote: »

Hi i have just done that from my 89 year old grandmother and the total if you paid up front was £3583 but if you wished direct debit it went up to £4321 which worked out very expensive . The plan was with the co-op care. The prices were different but the plan the same its shocking how much these cost now even for a basic one.:eek:

That seems very expensive to me. My mother passed away in November last year in Stockport, and the price of her funeral ALL IN was £2600, using a small family undertaker that has been in business for over 50 years.

catfish50

Hi OP - I also would like to know the most efficient way to cover my funeral expenses. Ideally I'd prefer to take out a life insurance policy naming my offspring as beneficiaries, and that way they would get anything left over from the costs of the funeral. The only snag I see is probate. I've read that an insurance policy can be written into a trust and then it doesn't have to wait for probate. Did you investigate this? I'm thinking the cost of the trust might be worth it in exchange for the kids getting the balance of the payout.

luminated

catfish50 wrote: »

Hi OP - I also would like to know the most efficient way to cover my funeral expenses. Ideally I'd prefer to take out a life insurance policy naming my offspring as beneficiaries, and that way they would get anything left over from the costs of the funeral. The only snag I see is probate. I've read that an insurance policy can be written into a trust and then it doesn't have to wait for probate. Did you investigate this? I'm thinking the cost of the trust might be worth it in exchange for the kids getting the balance of the payout.

An area I have have not given a thought to until first thing today. So not able to offer any useful suggestions - sorry.

catfish50

OP, I've been looking at the AgeUK funeral plan, which they do in association with an outfit called Dignity. Now I don't much care for the name of this organization as it seems altogether too close to Dignitas for my liking. But it seems worth looking into. The websites don't mention whether or not you can pay for this plan without it being seen as deprivation of capital, but presumably AgeUK would be able to answer this question.

http://www.ageuk.org.uk/buy/age-uk-guaranteed-funeral-plan/?paging=false&ito=2267&itc=0


http://www.dignityfuneralplans.co.uk/funeralplans/home/

luminated

catfish50 wrote: »

OP, I've been looking at the AgeUK funeral plan, which they do in association with an outfit called Dignity. Now I don't much care for the name of this organization as it seems altogether too close to Dignitas for my liking. But it seems worth looking into. The websites don't mention whether or not you can pay for this plan without it being seen as deprivation of capital, but presumably AgeUK would be able to answer this question.

http://www.ageuk.org.uk/buy/age-uk-guaranteed-funeral-plan/?paging=false&ito=2267&itc=0


http://www.dignityfuneralplans.co.uk/funeralplans/home/

Thanks so much for the advice and links. I will look in more detail in the morning where I am my best, or should I say when I am 'more better'ish' (well usually) than in the evenings.

The dep of cap is something I have googled but not found an authoritive source of help so I will phone CAB in the next day or two and update on this thread.

But I must say there is something unpleasant having to look at this type of issue.

catfish50

luminated wrote: »

But I must say there is something unpleasant having to look at this type of issue.

Which issue -- funeral plans, or capital deprivation?