Not sure what to do regards a funeral plan

BobQ

I see no useful purpose in funeral plans unless you have no assets and an income that is far greater than your needs.

If you want to do something keep your savings at a level that means there is enough to pay a funeral. £4000+ seems excessive.

BobQ

http://www.sunlifedirect.co.uk/funeral-planning/funeral-plans/#tab_3

I have just been reading this. I have to say I am unimpressed.

First, the monthly premium buys nothing for the first two years ( some insurance). Second you keep paying premiums until you are 90 years old. I assume the OP is paying for the plan on some other basis (like HP). Third the basic plan excludes viewing the deceased. Fourth if you stop paying (say you went into a care home) you are uninsured.

What a racket!

Of course other plans are available from other providers. Probably the same racket.

oliveoil99

TomEdpost wrote: »

I don't want to be intrusive into your personal affairs but do you own a house or any other valuables which could be sold at your death and used to top up the funeral costs? It is admirable that you want to protect your children but from what you have said about your age and income, I think you will want/need that £20 a month for yourself as a pensioner ..remember your living costs are going to go on rising as well. You say you are 62 with no health problems ..so living another 20-30 years is well within reach. I know many retired people are fiercely independent and always put their children first, but I think I would prefer to have bit more spare cash in my retirement than worry about my funeral costs too much. After all, if it is a lump sum and not a pre paid funeral, your inheritors can spend it how they like and not necessarily on a "good send off" for you! Enjoy your life today ...

No house in rented accommodation everything I had of value has been sold even my wedding and engagement rings for day to-day living that was not a good day.I know how to live very frugal and was thinking of just puttng that 20pound away to top up the Sun Life. Yes I know I made a big mistake taking out the policy but stuck with it now. I have told my family I want the basic funeral with no frills or extras.

g6jns_2

oliveoil99 wrote: »

No house in rented accommodation everything I had of value has been sold even my wedding and engagement rings for day to-day living that was not a good day.I know how to live very frugal and was thinking of just puttng that 20pound away to top up the Sun Life. Yes I know I made a big mistake taking out the policy but stuck with it now. I have told my family I want the basic funeral with no frills or extras.

Do you really need to pay any more into the scheme? If not then stop doing so and make use of extra money. This may sound heartless but if you are happy with a very simple funeral then if the worst comes to the worst the local authority will pay for this if there are not sufficient funds.

duchy

The Co-op do a funeral plan that would cover everything for £26 a month. I used to mystery shop them for funeral plans and it fixed the price and cover all disbursements even if they increased after you took out the plan. If you could stretch your budget from £20 to £26 you'd cover everything and have the Sun plan proceeds to pay off anything else and even leave a little bit for your family. (or stop paying into it altogether)

It's a couple of years since I mystery shopped them but I doubt anything has changed. Might be worth a look -the plan details are all on their website.

Looking at your circumstance if you cancelled the Sun policy you'd save £14 a month but instead of having to put £20 a month away as well totaling £34 you'd be paying £26 so £8 a week better off and no worrying about the funeral. Depends how much it would grate to lose what you've already paid to Sun though.

Shelldean

Duchy,


I don't know if Olive has the same type of Sunlife Ins my nan had. But in my Nans case if you stopped paying in you lost everything you'd already paid in.
It was a set amount a month, that paid a set amount on death after the first yr of payments.
That's why I said my Nan would've been better paying her monthly payments into a bank account. As over the yrs she paid in more than was paid out after her death.

oliveoil99

Shelldean wrote: »

Duchy,


I don't know if Olive has the same type of Sunlife Ins my nan had. But in my Nans case if you stopped paying in you lost everything you'd already paid in.
It was a set amount a month, that paid a set amount on death after the first yr of payments.
That's why I said my Nan would've been better paying her monthly payments into a bank account. As over the yrs she paid in more than was paid out after her death.

Yes this is the policy I have if you pull out you have lost everything you have put in.

Shelldean

Olive


How much have you paid into Sunlife so far?
TBH as galling as it might be it might be worth just writing it off.
Then using the money you was paying sunlife to pay for a funeral plan, that will pay for the funeral when the time comes.
The only snag to this that I can see is that you pay a set amount for disbursements. And the costs of these rise. as I said previously OH Nan had one, but only allowed £600 for disbs, this was no where near enough. M-I-l also has one but has allowed more towards extra costs( we checked after discovering nans shortfall). She also paid for her plan over a number of months, whereas Nan paid for her in a lump sum.


I can find out which scheme m-I-l is in if you like?

Mojisola

There's a breakdown of a few plans here -
https://www.which.co.uk/money/insurance/reviews-ns/funeral-plans/the-costs-of-funeral-plans/

I don't think all the prices are completely up-to-date so check them before signing anything.