Shares versus funeral plan

LNc

My Mum is 75 this year and has shares with M&S that she says will currently cover the cost of a funeral. She has spoken with a rep from Golden Charter about having a funeral plan. She doesn't know whether to cash in her shares now and pay up front for the plan; keep the shares and pay monthly for the plan; or not have a plan at all and rely on the shares still paying for the funeral in the future. We are aware that the funeral plan does not cover everything you are required to pay out.

Savvy_Sue

Welcome.

I think the key question is, when the time comes, will someone be able to settle the bill for the funeral, then wait the sale of the shares to be repaid, or will you be scratching around negotiating terms with the FD?

If there's money readily available in her bank account, then that's an argument for hanging onto the shares (at least until their price is high!).

Mojisola

LNc wrote: »

My Mum is 75 this year and has shares with M&S that she says will currently cover the cost of a funeral. She has spoken with a rep from Golden Charter about having a funeral plan. She doesn't know whether to cash in her shares now and pay up front for the plan; keep the shares and pay monthly for the plan; or not have a plan at all and rely on the shares still paying for the funeral in the future. We are aware that the funeral plan does not cover everything you are required to pay out.

It should cover everything involved with the funeral.

Do you mean paying for the wake?

As Sue says - the funeral plan means no-one else has to find the money immediately. It was a huge relief for us that Mum and Dad had pre-paid for their funerals.

As when you're buying other things - get quotes from several companies before deciding.

Biggles

Keep the shares if they will cover the cost, rather than add to someone else's profits.

There will be plenty of time to sell them, funeral directors are very understanding at such times.

LNc

Thank you. The funeral plan doesn't cover cars, church costs, cost of the grave.

Mojisola

LNc wrote: »

Thank you. The funeral plan doesn't cover cars, church costs, cost of the grave.

The AgeUK plan my parents had covered the hearse and one car for the family.

It would be very hard to cover the grave costs completely because there are so many variables - people might already have a grave plot, etc - so that's understandable but some plans do give a contribution towards the costs.

There shouldn't be much in the way of costs for the church.

https://www.which.co.uk/money/insurance/reviews-ns/funeral-plans/the-costs-of-funeral-plans/

scotsbob

Mojisola wrote: »

It should cover everything involved with the funeral.

It should but rarely does. I used to do mystery shopping and undertakers funeral plans were part of the remits.

When you read them carefully you see how much will still need to be paid for. Most also have a radius clause and that can be a big shock to relatives.

Mojisola

scotsbob wrote: »

It should but rarely does. I used to do mystery shopping and undertakers funeral plans were part of the remits.

When you read them carefully you see how much will still need to be paid for. Most also have a radius clause and that can be a big shock to relatives.

Isn't that the same as buying anything - make sure that what you're buying is the deal you want?

scotsbob

Mojisola wrote: »

Isn't that the same as buying anything - make sure that what you're buying is the deal you want?

Yes, correct.

That doesn't negate my point, which is you were incorrect when you said it covers everything and people should be aware of the radius clause.

Mojisola

scotsbob wrote: »

Yes, correct.

That doesn't negate my point, which is you were incorrect when you said it covers everything and people should be aware of the radius clause.

I said a funeral plan should cover everything (as my parents' ones did) - if you buy one that doesn't, that's your choice.