Funeral plan?

wwp8

Hi all, I need to be educated as I am really struggling to understand all of this.

I am considering getting a funeral plan for my parents, if it is worth it.

My dad is 77 and ok health, my mum is 75 and has just been diagnosed with Lung Cancer, and is going through tests at the moment.

My mum fought throat cancer a few years ago, and I feel with my dad's stability of the recent news, I am concerned about them both.

They have no income (except pension) no savings or property but do have a lot of debt, which me and my partner have signed them up on a payment plan to keep them going.

I also do not have any savings if the worse happens, so will need to get a loan.
I had a browse on funeral plans but from what it looks like, you pay monthly or a lump sum, once your term ends, the company has your payments x months ready to be used (there are no extra bonus?)
I do not understand what is missing? is it just the additional specialist services?

What do I miss out if I start saving on an ISA. Yes I don't even have one of those yet.

Thank you all in advance.

teddysmum

The plan is just early payment so the eventual bill will be at today's prices; rather like taking a window replacement quote which will be honoured for the next 6 months, but instead of paying when you have the work done, you pay for the funeral, now.


It is likely that, if you go for monthly payments (which will cost more), the liability will not end if the person covered dies before the full amount is paid, as these payments may actually be a loan (rather like in the case of people failing to get out of gym instalments because the gym has been paid in full, by a loan and the payments are paying off that loan).


ISA's pay very little interest and an interest paying current account. Tesco Bank pays 3% on up to £3000 and has no paying in or direct debit requirements. Others pay different rates on a different sum, require a certain amount paid in each month (though it can go in and out again in minutes) and may also need a couple of regular monthly direct debits paid out.

Weighty1

Normally funeral plans cover ALL the funeral directors costs (hearse, limousine, coffin, preparation of the deceased etc) and they also provide a fund for disbursement costs which are the associated costs which fall outside of the funeral directors control ie. crematorium fees, minister fees, doctors fees (not included with all providers). The cover for the disbursements will either be invested by the funeral plan provider and hopefully grow over the years or will be guaranteed to grow by a fixed percentage to cover the inflationary aspect of these costs.

teddysmum

Weighty1 wrote: »

Normally funeral plans cover ALL the funeral directors costs (hearse, limousine, coffin, preparation of the deceased etc) and they also provide a fund for disbursement costs which are the associated costs which fall outside of the funeral directors control ie. crematorium fees, minister fees, doctors fees (not included with all providers). The cover for the disbursements will either be invested by the funeral plan provider and hopefully grow over the years or will be guaranteed to grow by a fixed percentage to cover the inflationary aspect of these costs.

I think there is a range of plans offered, as my mother-in-law's only covers collection and preparation of the body,coffin, hearse and crematorium fees (no second car or flowers).

Keep_pedalling

I would not go down this route, especially if it is going to put you in debt.

If your mother and father have absolutely no assets to fund a funeral, then the responsibility falls apon the LA or NHS depending on place of death. Any funeral provided this way will be a simple but dignified affair.

Get some advice from an organisation like MacMillan.

Weighty1

teddysmum wrote: »

I think there is a range of plans offered, as my mother-in-law's only covers collection and preparation of the body,coffin, hearse and crematorium fees (no second car or flowers).

There definitely are a range of plans offered by each provider, generally ranging from very basic ones, were the disbursement costs aren't even covered, to ones which allow 24hr access to the chapel of rest, 2 limousines, floral tributes list. Even so, some providers such as golden charter don't cover the medical fees irrespective of the option taken. Also, I'm not saying golden charter are bad, they've got some quite good features on their plans but they are different than some other providers