Prepaid Cremations

lildav48

I have noticed that it is dearer to prepay a cremation plan than to pay when the time comes. Why is this as they can invest your money.

Robin9

The company is hedging its bets as to how costs might move.

I am sure that if you invested todays costs then in 10 or 20 years or whenever there will not be enough in the kitty.

Browntoa

You are looking at current like for like prices 

Add on 10 or more years inflation to the cost and the difference is great 

You are fixing the cost now 

badmemory

When I bought my funeral a few years ago, the price went up by over a third in a year.  Basically investments, even risky ones, are not keeping up, & you don't really want them investing in risky ones.

WYSPECIAL

Most of the companies offering pre-paid cremations don't own crematoria.
The biggest cost is outside their control so they charge a premium on top of current prices to try to ensure they will make a profit when the cremation takes place.

boingy

I have a feeling we'll be seeing some of these companies unable to fulfil their commitments in the coming years and , as usual, it will be the customers who lose out. 

DullGreyGuy

boingy said:

I have a feeling we'll be seeing some of these companies unable to fulfil their commitments in the coming years and , as usual, it will be the customers who lose out. 

Anyone buying one now should do so from a legal and therefore regulated firm. Such Funeral Plans are covered by the FSCS https://www.fscs.org.uk/what-we-cover/funeral-plans/ 

LightFlare

Having a semi-dark sense of humour (although possibly part of the reasoning) — look at how gas prices have risen in the last couple of years

WYSPECIAL

boingy said:

I have a feeling we'll be seeing some of these companies unable to fulfil their commitments in the coming years and , as usual, it will be the customers who lose out. 

It's regulated now so any horror stories should be in the past.

Spendless

My Mum.bought a funeral plan for my Nan when she went into a care home. It cost £5k, average funeral.cost was then £3.5k. Nan lived a futher 8 years, dying at the beg of last year. What Nan had would by then have cost £8k.
Mum took a gamble and it paid off. If Nan had died a few weeks after the plan was purchased then Mum would have paid over the odds for what one cost.