New Post Advanced Search

Welcome to the new MSE Forum!

If you were registered on the old Forum BEFORE 6th February 2020, you will need to reset your password (here) before you are able to log in. When you've reset your password, you can close this message with the 'X' in the top-right corner to make it disappear. If you need any help getting started, click here.

Pre paid funerals/over 50's or Savings account

23 replies 475 views
Hi, Over the last month or so I have been sizing up what is the best money value route so that I can arrange our funerals, which we both want to be simple and no  fuss, also as I'm retired I need to keep costs down.
I am 65 and my wife is 60 both in (touch wood) good health. So from what I can see I have 3 options, which are as follows.
1: A pre paid direct funeral plan with companies like "pure cremations and simply funerals" and their prices are from £1000 ish to 2000 ish
2: Take out an over 50's plan from British Seniors (went with them as they get good reviews) from who I've had the following quotes and the process are per person
£8000 payout @ £45.36 monthly
£6000 [email protected] £33.28 monthly
£10000 payout @ £54.79 monthly
Now I know that if we hopefully live a long life that I will end up paying more into this than what I'll get back and also due to inflation that the payouts might not be enough to cover the funerals. However the other argument is that if any of us die in say 2 years we would then get the full payments from British Seniors and that would cover funeral costs at present.
3: Last option I pay the equivalent of the monthly payments  into an  ISA savings account that I already have and then use that account to pay for our funerals.
Sorry for the length of this post, but as you can tell I'm struggling with what decision I should make.

Thanks in advance for any advice







:D voddyman
«13

Replies

  • Owain_MoneysaverOwain_Moneysaver
    10.8K posts
    Forumite
    Tenth Anniversary 10000 Posts
    ✭✭✭✭✭
    1: A pre paid direct funeral plan with companies like "pure cremations and simply funerals" and their prices are from £1000 ish to 2000 ish
    2: Take out an over 50's plan ...  I will end up paying more into this than what I'll get back and also due to inflation that the payouts might not be enough to cover the funerals. 
    3: Last option I pay the equivalent of the monthly payments  into an  ISA savings account that I already have and then use that account to pay for our funerals.
    Option 1 is simplest - your funeral is paid for, at a fixed price. However, especially the cheaper funerals/direct cremations may not be what you or your family would want. 

    Option 2 has a double drawback - you are likely to lose out twice as you pay in more than you get out, and there still isn't enough money for funerals.

    Option 3 has the drawback of - the cost of funerals may increase more than the value of your investment. The other drawback is - suppose you need the money for something else first?

    There are two other options:

    Option 4 - do you actually need to prepay your funeral? If you are likely to have sufficient assets when you die, that will pay for your funeral. Or if your family will be able to afford it, they can pay (they might buy a cheap direct cremation if they prefer).

    Option 5 - if there isn't any money to pay for a funeral, the local council will provide a free public health cremation. Unlike the macabre scenarios portrayed by the purveyors of the over-50s plans, your family will not be left with the cost of a funeral they cannot afford. (Unless that is what they choose to arrange, of course.)


    A kind word lasts a minute, a skelped erse is sair for a day.
  • Owain_MoneysaverOwain_Moneysaver
    10.8K posts
    Forumite
    Tenth Anniversary 10000 Posts
    ✭✭✭✭✭
    voddyman said:
    £10000 payout @ £54.79 monthly
    Now I know that if we hopefully live a long life that I will end up paying more into this than what I'll get back
    Possibly a lot more. If you live for 30 years (ages 95 and 90, which is not unusual these days) you'll have paid in £19,724 for that £10,000 payout. And you won't see any of that £10,000 because you'll be dead. 

    Better to spend £2,000 on the funeral now and £54 on a nice meal out every month, enjoying life together while you have it. 
    A kind word lasts a minute, a skelped erse is sair for a day.
  • luvchocolateluvchocolate
    2K posts
    Forumite
    Seventh Anniversary 1000 Posts Home Insurance Hacker!
    ✭✭✭
    It is a very personal thing, I have paid for mine with the Coop , my parents had done this and it made it so much easier for me to deal with.
    Funerals seem to rise year on year so to pay in advance made sense for me.
  • minty777minty777
    291 posts
    Forumite
    Sixth Anniversary 100 Posts Photogenic PPI Party Pooper
    ✭✭
  • voddymanvoddyman
    130 posts
    Forumite
    Part of the Furniture 10 Posts
    1: A pre paid direct funeral plan with companies like "pure cremations and simply funerals" and their prices are from £1000 ish to 2000 ish
    2: Take out an over 50's plan ...  I will end up paying more into this than what I'll get back and also due to inflation that the payouts might not be enough to cover the funerals. 
    3: Last option I pay the equivalent of the monthly payments  into an  ISA savings account that I already have and then use that account to pay for our funerals.
    Option 1 is simplest - your funeral is paid for, at a fixed price. However, especially the cheaper funerals/direct cremations may not be what you or your family would want. 

    Option 2 has a double drawback - you are likely to lose out twice as you pay in more than you get out, and there still isn't enough money for funerals.

    Option 3 has the drawback of - the cost of funerals may increase more than the value of your investment. The other drawback is - suppose you need the money for something else first?

    There are two other options:

    Option 4 - do you actually need to prepay your funeral? If you are likely to have sufficient assets when you die, that will pay for your funeral. Or if your family will be able to afford it, they can pay (they might buy a cheap direct cremation if they prefer).

    Option 5 - if there isn't any money to pay for a funeral, the local council will provide a free public health cremation. Unlike the macabre scenarios portrayed by the purveyors of the over-50s plans, your family will not be left with the cost of a funeral they cannot afford. (Unless that is what they choose to arrange, of course.)


    Thank you for you will laid out thoughts on my predicament.
    I'm think that option 1 is probably best and I believe that if my next of kin want to something extra that they can arrange for that themselves, who pays for that will have to be decided by the surviving spouse and the next of kin (I know that sounds harsh but reality musts) Also if my wife or myself is the last to go, my next of kin will then be able to use money from the estate to pay for extras.

    Option 4 would certainly be my choice, but the problem I have with that is and don't laugh, would I not be taking a chance on who dies first and therefore who's pre paid funeral would we pay for first as my next of kin would only be able to access the estate monies to pay for funerals when the last existing person passes away?
    :D voddyman
  • voddymanvoddyman
    130 posts
    Forumite
    Part of the Furniture 10 Posts
    minty777 said:
    Been looking at this newish company
    https://www.notforprofitfuneralplans.co.uk/compare-providers-prices/

    I shall have a look at them. Thank you 👍👍🙂🙂




    :D voddyman
  • Owain_MoneysaverOwain_Moneysaver
    10.8K posts
    Forumite
    Tenth Anniversary 10000 Posts
    ✭✭✭✭✭
    voddyman said:
    Option 4 would certainly be my choice, but the problem I have with that is and don't laugh, would I not be taking a chance on who dies first and therefore who's pre paid funeral would we pay for first as my next of kin would only be able to access the estate monies to pay for funerals when the last existing person passes away?
    Really not sure what you are thinking here. If there are any funds in your bank account etc when you die, the bank will usually meet the funeral director's bill out of funds held immediately, before waiting for probate.
    A kind word lasts a minute, a skelped erse is sair for a day.
  • voddymanvoddyman
    130 posts
    Forumite
    Part of the Furniture 10 Posts
    voddyman said:
    Option 4 would certainly be my choice, but the problem I have with that is and don't laugh, would I not be taking a chance on who dies first and therefore who's pre paid funeral would we pay for first as my next of kin would only be able to access the estate monies to pay for funerals when the last existing person passes away?
    Really not sure what you are thinking here. If there are any funds in your bank account etc when you die, the bank will usually meet the funeral director's bill out of funds held immediately, before waiting for probate.
    Sorry mate, I probably didn't word that very well and it is difficult to try and explain what I'm getting at, but I'll try , lol.
    So say I didn't have any funeral plans set up for my death but we had funeral plans for my wife , but we had no funds to pay for my funeral does that mean it would have to be a council funeral as my wife would not be able access to any value of the estate, i.e. the value of our home .
    But then when my wife dies and we had a funeral plan for her so therefore get funeral would be taken care of and all the monies from the house etc would then go to our next of kin.
    That's where I was going with that query, if we take out pre paid funeral plan for just one of us how would we decide whether to take it out for myself or my wife?
    I hope that explains it a bit better, but it probably won't, lol. 👍😁

    :D voddyman
  • Owain_MoneysaverOwain_Moneysaver
    10.8K posts
    Forumite
    Tenth Anniversary 10000 Posts
    ✭✭✭✭✭
    voddyman said:
    Sorry mate, I probably didn't word that very well and it is difficult to try and explain what I'm getting at, but I'll try , lol.
    So say I didn't have any funeral plans set up for my death but we had funeral plans for my wife , but we had no funds to pay for my funeral does that mean it would have to be a council funeral as my wife would not be able access to any value of the estate, i.e. the value of our home .
    Potentially yes, if your wife had no means to pay for a funeral, ie no other assets other than the house and no income.
    (I should mention that if that were the case then she may be eligible for Bereavement Support if under State Pension Age, or Funeral Payment, or other DWP benefit available). I wouldn't recommend a loan, or equity release, but they might be options. 

    If you can't afford to prepay two funerals in advance, most of the schemes offer monthly instalments over a year or two. I think only the Co-op will cover the full cost if you've paid less than the full instalments and you die. I also don't know if any of the schemes would let one plan cover two named individuals on a 'first to die' basis. 

    You should also check the legal form in which you own your house as joint tenants or tenants in common; it may make a difference to whether half the value of the house is classed as your estate (which would be claimed by the council towards the cost of the public health funeral) or whether it passes directly to your spouse. 

    A kind word lasts a minute, a skelped erse is sair for a day.
  • voddymanvoddyman
    130 posts
    Forumite
    Part of the Furniture 10 Posts
    voddyman said:
    Sorry mate, I probably didn't word that very well and it is difficult to try and explain what I'm getting at, but I'll try , lol.
    So say I didn't have any funeral plans set up for my death but we had funeral plans for my wife , but we had no funds to pay for my funeral does that mean it would have to be a council funeral as my wife would not be able access to any value of the estate, i.e. the value of our home .
    Potentially yes, if your wife had no means to pay for a funeral, ie no other assets other than the house and no income.
    (I should mention that if that were the case then she may be eligible for Bereavement Support if under State Pension Age, or Funeral Payment, or other DWP benefit available). I wouldn't recommend a loan, or equity release, but they might be options. 

    If you can't afford to prepay two funerals in advance, most of the schemes offer monthly instalments over a year or two. I think only the Co-op will cover the full cost if you've paid less than the full instalments and you die. I also don't know if any of the schemes would let one plan cover two named individuals on a 'first to die' basis. 

    You should also check the legal form in which you own your house as joint tenants or tenants in common; it may make a difference to whether half the value of the house is classed as your estate (which would be claimed by the council towards the cost of the public health funeral) or whether it passes directly to your spouse. 

    Hi mate, thanks again for all your help, it really is much appreciated.
    I only started looking at everything that is involved with the dreaded death subject and can tell you my head is bursting with all the different scenarios involved. It is really a logistical nightmare. 
    I can see why over 50% of people in the UK have nothing put in place. 😞😞
    :D voddyman
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms