IS YOUR MONEY SAFE WITH PREPAID FUNERAL PLANS?

skinnylegs

Is it safe to prepay for your funeral? 

lincroft1710

Any financial investment (which a funeral plan is) carries a risk.

Why  tie up money in something you personally won't actually see the benefit of?

MikeJXE

lincroft1710 said:

Any financial investment (which a funeral plan is) carries a risk.

Why  tie up money in something you personally won't actually see the benefit of?

I hope mine is with the co-op

Mine is so the kids don't have to go through the distressing process 

Also I gave half my saving to my two sons and 4 grandkids or I wouldn't have seen the benefit of that either

Jonty6262

https://www.fscs.org.uk/media/press/2022/july/funeral-plans-fscs-protected/#:~:text=Plan holders with 26 authorised,on Friday 29 July 2022


https://www.fca.org.uk/news/press-releases/fca-regulation-boosts-consumer-protection-funeral-plans-market

https://www.fscs.org.uk/industry-resources/funeral-plans/

macman

MikeJXE said:

lincroft1710 said:

Any financial investment (which a funeral plan is) carries a risk.

Why  tie up money in something you personally won't actually see the benefit of?

I hope mine is with the co-op

Mine is so the kids don't have to go through the distressing process 

Also I gave half my saving to my two sons and 4 grandkids or I wouldn't have seen the benefit of that either

But their distress will presumably be at your passing, not at having to pay for it out of the funds you have already set aside for it?

diystarter7

macman said:

MikeJXE said:

lincroft1710 said:

Any financial investment (which a funeral plan is) carries a risk.

Why  tie up money in something you personally won't actually see the benefit of?

I hope mine is with the co-op

Mine is so the kids don't have to go through the distressing process 

Also I gave half my saving to my two sons and 4 grandkids or I wouldn't have seen the benefit of that either

But their distress will presumably be at your passing, not at having to pay for it out of the funds you have already set aside for it?

Exactly that. These so-called plan, I would not touch them and not sure why people bother. 

lincroft1710

MikeJXE said:

lincroft1710 said:

Any financial investment (which a funeral plan is) carries a risk.

Why  tie up money in something you personally won't actually see the benefit of?

I hope mine is with the co-op

Mine is so the kids don't have to go through the distressing process 

Also I gave half my saving to my two sons and 4 grandkids or I wouldn't have seen the benefit of that either

I can see that if you have previously arranged funerals and found the process distressing, you would not want your children to go through this and of course you can decide what you want to happen rather than what someone else believes you would want.


My own experience has been that the passing and funerals were far more distressing than the arranging.

Mojisola

diystarter7 said:

Exactly that. These so-called plan, I would not touch them and not sure why people bother. 

My parents bought plans mainly because they could only have £6000 in savings before it affected their benefits but money in a funeral plan didn't count as savings. 

They paid for them monthly over several years.

They were with AgeUK and the plan covered all the expenses related to the funeral (apart from a few extras that the family added on). 

By the time the first of them died, funerals had become a lot more expensive so that was a saving and the survivor had the benefit of keeping the capital they had saved between them which helped as the household income dropped considerably with only one person then in the home.

BuzzyBee77

Used a funeral plan as LPA for my Dad. Had no problems with it, though we didn't use one or two things in the plan. 

tooldle

My mum has a funeral bond from the Coop.  It is paid for upfront (lump sum). My Dad had the same. Both were purchased in 1997 and one was used in 2013 without issues. I'm not sure if the Coop still offer a bond but basically the purchaser decides on the details of their funeral and pays for it at cost on that day. When death occurs all services detailed in the bond are covered in full. Any extras are charged at current rates.