Funeral Plans

ABainbridge

Having been off work for a few weeks laid up after an op I have been amazed at the number of television adverts from companies advertising "Funeral Plans", aimed at over 50's to have a policy that will pay out funeral costs. Are they worthwhile? Which is the best option? Are they regulated? Is my investment secure? Any information would be gratefully received

Yorkshireman99

ABainbridge wrote: »

Having been off work for a few weeks laid up after an op I have been amazed at the number of television adverts from companies advertising "Funeral Plans", aimed at over 50's to have a policy that will pay out funeral costs. Are they worthwhile? Which is the best option? Are they regulated? Is my investment secure? Any information would be gratefully received

Short answer is don't! Long answer is don't because they are poor value for money, unregulated and just bad news. Put some money way intoa conventional investment instead.

geminilady

Yorkshireman99 wrote: »

Short answer is don't! Long answer is don't because they are poor value for money, unregulated and just bad news. Put some money way intoa conventional investment instead.

Why do you say they are poor value for money?if you die ten years from now you only pay the same but funeral costs may have tripled

Yorkshireman99

Read the fine print and you will find that is not the case. The idea that funeral costs will triple in ten years is absurd.

geminilady

ABainbridge wrote: »

Having been off work for a few weeks laid up after an op I have been amazed at the number of television adverts from companies advertising "Funeral Plans", aimed at over 50's to have a policy that will pay out funeral costs. Are they worthwhile? Which is the best option? Are they regulated? Is my investment secure? Any information would be gratefully received

All investments are usually held in a trust so your money is safe.I should not have to say this but always make sure you read the small prints on any plan.

geminilady

Yorkshireman99 wrote: »

Read the fine print and you will find that is not the case. The idea that funeral costs will triple in ten years is absurd.

It is the case with some plans and the ten years was just an example.The fact is funeral plans will rise proberly faster than savings

Yorkshireman99

My point is that there are funeral plans being sold using scare mongering tactics about the costs. A simple funeral can be done for £1,500 or so.

pattycake

I believe most of companies rely on the fact that the the insured person stops paying the premium for one reason or another. Someone in their 50s could reasonably expect another 25+ years of life. How much would have been paid over in that time? If you don't pay for the rest of your life there is no return and all money paid is gone. Good profit for the insurers.

I wouldn't touch them with a barge pole.

geminilady

pattycake wrote: »

I believe most of companies rely on the fact that the the insured person stops paying the premium for one reason or another. Someone in their 50s could reasonably expect another 25+ years of life. How much would have been paid over in that time? If you don't pay for the rest of your life there is no return and all money paid is gone. Good profit for the insurers.

I wouldn't touch them with a barge pole.

You are talking about insurance plans not a funeral plan,once the present cost is paid on a funeral plan there is no more to pay except for things not covered by the plan

badmemory

The problem is that a lot of the plans advertised on tv as funeral plans aren't actually funeral plans at all but insurance. My mother had a funeral plan bought about 10 years before it was used. It paid for exactly what was in the paperwork including the following car. All it didn't include were the flowers on top of the coffin. In one of my more paranoid moments I took the price she had paid and increased it by the interest from my better savings accounts (the sorts she would have used) and she made a profit.

I too have a plan like her's. With the same people. It allows me to say what I want (and what I don't want). If anyone wants any more they can pay for it! After all I won't care cos I'll be dead - but hopefully not for an awful lot of years.

Maybe the problem is who people are buying them from (and their price) not the actual product type itself.