Funeral plan vs insurance

louisaloves

I will ultimately be responsible for the funeral costs of two of my relatives, so I am wondering about whether to opt for a funeral plan or an insurance policy.

Funeral plans seem quite pricey but a simple insurance policy with a payout of about 5k to cover a funeral is more affordable.

Pros and cons for each, anyone have any experience with this

jimjames

Third option, put money into savings. Then any surplus is available for whatever you want

[Deleted User]

Funeral costs tend to outstrip inflation, so a plan tends to be better value than insurance or savings. However, they no longer tend to guarantee disbursements (vicars, flowers etc) but make a fixed contribution to them, which may or may not be enough.

People tend to also be happier with much cheaper funerals for themselves when buying in advance, rather than the decisions made 'at the time of need'.

Mojisola

louisaloves wrote: »

Funeral plans seem quite pricey but a simple insurance policy with a payout of about 5k to cover a funeral is more affordable.

Have you seen this comparison chart of which plan provides -
http://www.which.co.uk/money/insurance/reviews-ns/funeral-plans/the-costs-of-funeral-plans/

Most companies offer various payment plans which reduce the monthly costs (but increases the total cost).

As zx81 says - things like flowers and announcements in the paper would have to be funded in addition to the funeral plan.

Savings is a good idea unless you're receiving means-tested benefits or likely to before these funerals have to be paid for.

Biggles

Why will you be responsible?

If they have any savings at all, the funeral will be first call on their estate. Even if they only have a few hundred pounds, there would be no need for you to fund the whole cost of the funeral.

One of the other threads you started today was about an inheritance you are expecting - if this was one of said relatives, the funeral cost definitely won't fall to you.

dunstonh

Funeral costs can be paid out of the estate. So, as Biggles says, why you are responsible?

fromtheshires

Im not too clued up on insurance side of things but, funeral pre-payments by the Co-Op cover a lot of things for funerals and although the money comes out of the estate, having had two deaths in my family within two weeks of each other, trust me it was easier on all concerned when we just rang the Co-op up and told them there was a plan in place for them and they did the rest. There are several plans available and some inculde more than others so best to have a good read.

It also means you get exactly what you want and can decide down to the design of coffin and not have family guessing what one you would have wanted. From a money saving point of view, funerals go up year on year so if you buy a plan today, the estate will have more money if you live for a long time as your plan will still be valid. The younger you are, the more value for money a plan is as.

I guess its a horses for courses thing. Lastly, if a family is unable or unwilling to pay for a funeral you can get a public health funeral paid for by the state. This is a simple plain funeral no thrills at all and put in a shared unmarked grave but thats the most MSE of all (however disresectful it is to the deceased if its the unwilling to pay for a funeral instead of simply not being able to afford one)

Mojisola

fromtheshires wrote: »

Lastly, if a family is unable or unwilling to pay for a funeral you can get a public health funeral paid for by the state.

This is undignifed and you will prbably be in a card box, transported in a transit and put in a shared grave but thats the most MSE of all (however disresectful it is to the deceased if its the unwilling tpay for a funeral instead of simply not being able to afford one)

This is absolutely not true!

A public health funeral is conducted by a funeral director and will be a cremation. All the usual care is taken and a very simple but respectful service is held. Family members and friends can attend if they wish.

The FD uses unpopular time slots at the cremation which might otherwise go unfilled and this means the price is kept low for the LA or the NHS, whichever is funding the funeral.

fromtheshires

Mojisola wrote: »

This is absolutely not true!

A public health funeral is conducted by a funeral director and will be a cremation. All the usual care is taken and a very simple but respectful service is held. Family members and friends can attend if they wish.

The FD uses unpopular time slots at the cremation which might otherwise go unfilled and this means the price is kept low for the LA or the NHS, whichever is funding the funeral.

OK, I didnt actually mean undignified in the way it came across in text so have edited that bit out. I am aware that they may hold a funeral service for the deceased and by shared grave, it is a state grave and they can have more than one person buried in it (source Telford.gov.uk)

jimjames

fromtheshires wrote: »

OK, I didnt actually mean undignified in the way it came across in text so have edited that bit out. I am aware that they may hold a funeral service for the deceased and by shared grave, it is a state grave and they can have more than one person buried in it (source Telford.gov.uk)

Not if it's a cremation.

Mojisola

fromtheshires wrote: »

I am aware that they may hold a funeral service for the deceased and by shared grave, it is a state grave and they can have more than one person buried in it (source Telford.gov.uk)

jimjames wrote: »

Not if it's a cremation.

I'm surprised Telford offers burials - I though most areas had gone over to cremations for public health funerals.

It's not unusual to have more than one body in a grave. A good few of my ancestors were buried with several other family members.