Prepaid Funeral Plans

Co-op_Funeralcare

There's so many companies selling funeral plans so it's worth making sure you check a few things before you buy. Our advice would be:
1 - check that the funeral plan provider is registered with the FPA (Funeral Planning Association),
2 - never buy from an intermediary as they take large commission payments out the value of the plan. Always buy direct,
3 - make sure you choose a plan that guarantees the disbursements (not just a contribution).

sheramber

My sister took out a funeral plan 15 years ago. The cost was £1500 to cover everything, including the music to be played at the crematorium. The cost today- or in the future when needed- will be a lot more.

I doubt £1500 in a bank account would have increased in value to cover funeral costs now or in the future.

I took one out 6 years ago for £2300 to cover cremation costs, funeral directors costs, collecting body and caring for it, family viewing, hearse to crematorium, basic coffin, third party costs-( minister etc, doctors costs for certificates )
Things I omitted were flowers and cars to the crematorium. So if the family want these there will be an extra charge.
However, the main costs will be covered.

This plan covers my husband or myself, whoever dies first, which means more money left for the surviving partner.

Mojisola

One thing to think about if you go with the larger schemes like AgeUK - you have no control over which FD has the contract at the time of the funeral.

The FD changed between the time my parents bought their plans and died. Fortunately we were very pleased with the FD that had the AgeUK contract but, if you have an affinity with a particular firm, the big schemes may not be for you.

1littleduck

Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.
I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.
Can anyone tell me if this is worth continuing with as I have only paid £733.68 of this bill.
I cannot find anything to say that in the case of my death (before the instalments are finished) the plan would automatically pay out for my funeral therefore would it be better for me to take out a sun life guaranteed plan which is a lot cheaper.

Rubik

1littleduck wrote: »

Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.
I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.
Can anyone tell me if this is worth continuing with as I have only paid £733.68 of this bill.
I cannot find anything to say that in the case of my death (before the instalments are finished) the plan would automatically pay out for my funeral therefore would it be better for me to take out a sun life guaranteed plan which is a lot cheaper.

I would speak to GOlden Charter - and ask them to explain the additional charges. And why you are paying £30.57 a month for standard plan, when they advertise that plan for a monthly installment of just £16.45. Look back over your original paperwork and read the small print.

1littleduck

Thank you for the reply. I will contact them as soon as I get this straight in my head. The plan states 'standard' with a cremation and the funeral directors details. I will call into the funeral directors to see what details they have received. it also states that if there is any increase in disbursements, there will have to be paid by a member of the family when I am gone. I also notice they are advertising a plan for £3495.00 at £16.45 per month.

Mojisola

1littleduck wrote: »

Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.

I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.

If you were going to pay over five years, your monthly payment would be £63.46.

badmemory

OMG that much! There are far too many people/companies taking their cut out of this which is making it so expensive. To me the whole point in having a "plan" is so that no one has to pay for anything else unless they really want too. Such as extra limos & extra flowers but certainly it should include anything which HAS to be paid, why else would you bother?

sheramber

If you are paying by instalments you may have interest charges added on. Does the paper work mention an interest rate?

What the plan cover depends on what you take out, Varying from a basic cremation with no extras to covering everything.

It is explained what you are covering in the plan information. If you don't think it is worth having the bulk of the costs covered against increasing costs then don't take out a plan. Then your estate will have to pay the increased costs on everything not just some of them.

Third party costs are private charges and will vary greatly depending on where you are and who you use and the increases over the years. You may have a friend who conducts the service free of charge or your relatives may chose someone who charges a high fee. So there is no way a plan can anticipate what the charges will be .

The plan decides what they will cover for the fees and any extra over that amount will be charged. Of course the fees may be covered by the amount.

The FAQ explain what happens of you die before making all the payments. The plan is not an insurance plan, You are paying up the costs of a funeral.


What happens if I die before I have made all of my payments?

This will depend on the type of payment method you have chosen. If you are paying by 12 monthly instalments and you die before all payments have been made, the balance will be requested from your estate so your funeral can still be carried out. Or, the plan can be cancelled and the payments refunded (less £249 cancellation fee).

If you have chosen the low cost monthly instalment option and you die within 12 months, all the money you have paid will be returned to your estate. If you die after 12 months but before all of the instalments have been paid, the balance will be requested from your estate so that your funeral may still be carried out.

If you have chosen to pay by fixed monthly payments and you die within the first two years, the funeral director will receive the money you have paid plus an additional 20% provided your payments are up to date. Your family or estate will then have to pay the balance.

mswallace

I paid for my sons funeral myself in cash. Co op arranged everything including getting the Rolls Royce I wanted and the solid English Oak coffin. It cost less than £5000, a lot less. I had that much in cash and had a lot left over even after flowers for 3 people were included in the bill. I live 'south of Watford' - don't think location makes much difference unless it's the City of London but that's to be expected, everything costs more in the capital.