Prepaid Funeral Plans

SparklesJD

How much even a basic funeral costs will vary hugely from area to area - this site offers a good comparison of providers in your area: https://www.yourfuneralchoice.com/

My main gripe with the industry is that it is unregulated. These can be very complicated products, often sold by those who aren't experts in finance (I mean no disrespect, I have only ever met fantastic FDs who want the best for their clients, but there are good and bad in every industry).

The FPA is an industry body who, as others have said, will consider honouring your plan if your chosen provider goes bust. With a reputable provider the money should be ring-fenced and held in trust, but there's no guarantee, whereas putting money aside with a UK-registered bank, building society or credit union means that if they go bust, you're covered by the FSCS, no questions asked (the financial institution must provide a list of depositors to the FSCS within 24 hours and they send you the money), you're not depending on the whim of an industry body.

These risks aside, I know of families who've been really happy that their loved one had a pre-paid plan covering most, if not all, of the costs and it's true that pre-paying should cushion against price increases.

Whichever you choose, make sure that your relatives are aware that you have a plan/savings account and that they know where to access the relevant documents when the time comes.

Funds for the funeral can be released before probate is granted, so if you've got a savings account particularly for this, please let your chosen executor know, don't assume that they'll somehow find it - there's millions of pounds (c£850million!) lying unclaimed in dormant UK accounts and a good proportion of it must be where beneficiaries didn't know it existed - http://www.independent.co.uk/life-style/unclaimed-money-bank-account-how-to-check-find-cash-a7641176.html

Ninja650

I live in north of England, £4k is not far out, especially when you add in cremation fees, which alone are heading towards £1k . My dad died last October, I did not appreciate before exactly how kind he was buying a funeral plan, it saved us not only a lot of money but also a lot of hassle - the FDs could not have been more helpful or considerate & even dealt with coroner of rus.

iolanthe07

I have just paid £6500 for a funeral plan covering both my wife and I. It is supposed to be inflation protected. It covers the basics so my family won't have to worry, but if they want extras like limos, they'll have to pay for those themselves.

SteveRoffey

My wife and myself are looking to take out plans to cover our funerals, a good many years down the line we hope, neither of us is religious so we're opting for a direct cremation. Would appreciate any comments regarding the various companies that offer this service, we've had brochures from a couple of them and can't really see any difference in the service each provides.

Yorkshireman99

SteveRoffey wrote: »

My wife and myself are looking to take out plans to cover our funerals, a good many years down the line we hope, neither of us is religious so we're opting for a direct cremation. Would appreciate any comments regarding the various companies that offer this service, we've had brochures from a couple of them and can't really see any difference in the service each provides.

Why bother if you are,likely to have enough money in your estate when you die?

bobthesod

Need clarification

1) 'Plans' are mentioned
are these the pay monthly or lump sum paid in advance

2) some posts say that with a lump sum you are asked for more cash...dont understand if you pay at todays prices thats it surely.A sort of bet the longer you live. the more the 'bookie' pays out11lol

3) several posters say keep the money in the account and pay it off
Why if a pre paid funeral is just that..no more spending out sudden 'another 1000 pounds or they go back to the nursing home type thing'

4) why should i worry. i will be dead anyway loo..seriously am looking at pre paid. what pitfalls are there?

badmemory

I don't know about others but my funeral itself is paid for & arranged even down to something for them to say to my son. The only thing which should need selecting & paying extra for is the spray of flowers to go on my coffin, which will hopefully be tastefully small (the spray that is not the coffin) & definitely not too expensive.

Mojisola

bobthesod wrote: »

Need clarification

1) 'Plans' are mentioned
are these the pay monthly or lump sum paid in advance

2) some posts say that with a lump sum you are asked for more cash...dont understand if you pay at todays prices thats it surely.A sort of bet the longer you live. the more the 'bookie' pays out11lol

3) several posters say keep the money in the account and pay it off
Why if a pre paid funeral is just that..no more spending out sudden 'another 1000 pounds or they go back to the nursing home type thing'

4) why should i worry. i will be dead anyway loo..seriously am looking at pre paid. what pitfalls are there?

There are different options - look at what the different companies are offering, especially the small print.

Rubik

I would suggest you go and speak with a number of your local Independent funeral directors. Be wary of using the online sites which compare funeral plans - I made this mistake and was hounded by 3 different companies for months. I ended up speaking with a local independent FD, who helped me choose the right plan and the type of funeral I want (no frills, no fuss, and a woodland burial).

And yes - absolutely the read small print of any plan you are considering - there was an article in one the daily papers recently about the pitfalls of certain plan providers.

Mojisola

These pages give an introduction to the subject. Always check with the individual providers that the information given on the Which? site is up-to-date before buying.

https://www.which.co.uk/money/insurance/funeral-plans/guides/funeral-plans-reviewed

https://www.which.co.uk/money/insurance/funeral-plans/guides/funeral-plans-explained