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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 11th Oct 16, 5:00 PM
    • 106Posts
    • 29Thanks
    MSE Eesha
    Prepaid Funeral Plans
    • #1
    • 11th Oct 16, 5:00 PM
    Prepaid Funeral Plans 11th Oct 16 at 5:00 PM
    Hi!

    This is the discussion thread for the



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    Thanks folks ,
Page 4
    • badmemory
    • By badmemory 26th Dec 17, 4:28 AM
    • 1,624 Posts
    • 2,156 Thanks
    badmemory
    Well I've recently paid for my funeral (hopefully many many years in the future) for £2k so maybe £4k is a south of Watford kind of price.
    • SparklesJD
    • By SparklesJD 20th Jan 18, 5:47 PM
    • 79 Posts
    • 112 Thanks
    SparklesJD
    How much even a basic funeral costs will vary hugely from area to area - this site offers a good comparison of providers in your area: https://www.yourfuneralchoice.com/

    My main gripe with the industry is that it is unregulated. These can be very complicated products, often sold by those who aren't experts in finance (I mean no disrespect, I have only ever met fantastic FDs who want the best for their clients, but there are good and bad in every industry).

    The FPA is an industry body who, as others have said, will consider honouring your plan if your chosen provider goes bust. With a reputable provider the money should be ring-fenced and held in trust, but there's no guarantee, whereas putting money aside with a UK-registered bank, building society or credit union means that if they go bust, you're covered by the FSCS, no questions asked (the financial institution must provide a list of depositors to the FSCS within 24 hours and they send you the money), you're not depending on the whim of an industry body.

    These risks aside, I know of families who've been really happy that their loved one had a pre-paid plan covering most, if not all, of the costs and it's true that pre-paying should cushion against price increases.

    Whichever you choose, make sure that your relatives are aware that you have a plan/savings account and that they know where to access the relevant documents when the time comes.

    Funds for the funeral can be released before probate is granted, so if you've got a savings account particularly for this, please let your chosen executor know, don't assume that they'll somehow find it - there's millions of pounds (c£850million!) lying unclaimed in dormant UK accounts and a good proportion of it must be where beneficiaries didn't know it existed - http://www.independent.co.uk/life-style/unclaimed-money-bank-account-how-to-check-find-cash-a7641176.html
    Worker in, and passionate advocate of, the credit union movement. I don't speak for the sector or for any individual CU. My opinions & experiences are my own.

    Search MSE for more info about CUs and find ones that cover your area by searching online for 'find your credit union'.
    • Ninja650
    • By Ninja650 29th Jan 18, 4:01 PM
    • 1 Posts
    • 0 Thanks
    Ninja650
    I live in north of England, £4k is not far out, especially when you add in cremation fees, which alone are heading towards £1k . My dad died last October, I did not appreciate before exactly how kind he was buying a funeral plan, it saved us not only a lot of money but also a lot of hassle - the FDs could not have been more helpful or considerate & even dealt with coroner of rus.
    • iolanthe07
    • By iolanthe07 29th Jan 18, 4:12 PM
    • 5,011 Posts
    • 4,706 Thanks
    iolanthe07
    I have just paid £6500 for a funeral plan covering both my wife and I. It is supposed to be inflation protected. It covers the basics so my family won't have to worry, but if they want extras like limos, they'll have to pay for those themselves.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • SteveRoffey
    • By SteveRoffey 12th Feb 18, 1:13 PM
    • 7 Posts
    • 0 Thanks
    SteveRoffey
    My wife and myself are looking to take out plans to cover our funerals, a good many years down the line we hope, neither of us is religious so we're opting for a direct cremation. Would appreciate any comments regarding the various companies that offer this service, we've had brochures from a couple of them and can't really see any difference in the service each provides.
    • Yorkshireman99
    • By Yorkshireman99 12th Feb 18, 4:33 PM
    • 4,148 Posts
    • 3,392 Thanks
    Yorkshireman99
    My wife and myself are looking to take out plans to cover our funerals, a good many years down the line we hope, neither of us is religious so we're opting for a direct cremation. Would appreciate any comments regarding the various companies that offer this service, we've had brochures from a couple of them and can't really see any difference in the service each provides.
    Originally posted by SteveRoffey
    Why bother if you are,likely to have enough money in your estate when you die?
    • bobthesod
    • By bobthesod 18th Apr 18, 4:07 PM
    • 65 Posts
    • 5 Thanks
    bobthesod
    Need clarification

    1) 'Plans' are mentioned
    are these the pay monthly or lump sum paid in advance

    2) some posts say that with a lump sum you are asked for more cash...dont understand if you pay at todays prices thats it surely.A sort of bet the longer you live. the more the 'bookie' pays out11lol

    3) several posters say keep the money in the account and pay it off
    Why if a pre paid funeral is just that..no more spending out sudden 'another 1000 pounds or they go back to the nursing home type thing'

    4) why should i worry. i will be dead anyway loo..seriously am looking at pre paid. what pitfalls are there?
    • badmemory
    • By badmemory 19th Apr 18, 10:23 AM
    • 1,624 Posts
    • 2,156 Thanks
    badmemory
    I don't know about others but my funeral itself is paid for & arranged even down to something for them to say to my son. The only thing which should need selecting & paying extra for is the spray of flowers to go on my coffin, which will hopefully be tastefully small (the spray that is not the coffin) & definitely not too expensive.
    • Mojisola
    • By Mojisola 19th Apr 18, 11:28 AM
    • 29,256 Posts
    • 74,720 Thanks
    Mojisola
    Need clarification

    1) 'Plans' are mentioned
    are these the pay monthly or lump sum paid in advance

    2) some posts say that with a lump sum you are asked for more cash...dont understand if you pay at todays prices thats it surely.A sort of bet the longer you live. the more the 'bookie' pays out11lol

    3) several posters say keep the money in the account and pay it off
    Why if a pre paid funeral is just that..no more spending out sudden 'another 1000 pounds or they go back to the nursing home type thing'

    4) why should i worry. i will be dead anyway loo..seriously am looking at pre paid. what pitfalls are there?
    Originally posted by bobthesod
    There are different options - look at what the different companies are offering, especially the small print.
    • Rubik
    • By Rubik 19th Apr 18, 11:52 AM
    • 67 Posts
    • 135 Thanks
    Rubik
    I would suggest you go and speak with a number of your local Independent funeral directors. Be wary of using the online sites which compare funeral plans - I made this mistake and was hounded by 3 different companies for months. I ended up speaking with a local independent FD, who helped me choose the right plan and the type of funeral I want (no frills, no fuss, and a woodland burial).

    And yes - absolutely the read small print of any plan you are considering - there was an article in one the daily papers recently about the pitfalls of certain plan providers.
    • Mojisola
    • By Mojisola 19th Apr 18, 1:04 PM
    • 29,256 Posts
    • 74,720 Thanks
    Mojisola
    These pages give an introduction to the subject. Always check with the individual providers that the information given on the Which? site is up-to-date before buying.

    www.which.co.uk/money/insurance/funeral-plans/guides/funeral-plans-reviewed

    www.which.co.uk/money/insurance/funeral-plans/guides/funeral-plans-explained
    • Co-op Funeralcare
      Verified User verified user
    • By Co-op Funeralcare Verified User verified user 20th Apr 18, 10:55 AM
    • 4 Posts
    • 19 Thanks
    Co-op Funeralcare
    There's so many companies selling funeral plans so it's worth making sure you check a few things before you buy. Our advice would be:
    1 - check that the
    funeral plan provider is registered with the FPA (Funeral Planning Association),
    2 - never buy from an intermediary as they take large commission payments out the value of the plan. Always buy direct,
    3 - make sure you choose a plan that guarantees the disbursements (not just a contribution).
    • sheramber
    • By sheramber 22nd Apr 18, 3:35 PM
    • 4,687 Posts
    • 3,519 Thanks
    sheramber
    My sister took out a funeral plan 15 years ago. The cost was £1500 to cover everything, including the music to be played at the crematorium. The cost today- or in the future when needed- will be a lot more.

    I doubt £1500 in a bank account would have increased in value to cover funeral costs now or in the future.

    I took one out 6 years ago for £2300 to cover cremation costs, funeral directors costs, collecting body and caring for it, family viewing, hearse to crematorium, basic coffin, third party costs-( minister etc, doctors costs for certificates )
    Things I omitted were flowers and cars to the crematorium. So if the family want these there will be an extra charge.
    However, the main costs will be covered.

    This plan covers my husband or myself, whoever dies first, which means more money left for the surviving partner.
    • Mojisola
    • By Mojisola 22nd Apr 18, 5:53 PM
    • 29,256 Posts
    • 74,720 Thanks
    Mojisola
    One thing to think about if you go with the larger schemes like AgeUK - you have no control over which FD has the contract at the time of the funeral.

    The FD changed between the time my parents bought their plans and died. Fortunately we were very pleased with the FD that had the AgeUK contract but, if you have an affinity with a particular firm, the big schemes may not be for you.
    • 1littleduck
    • By 1littleduck 26th Apr 18, 1:21 PM
    • 2 Posts
    • 1 Thanks
    1littleduck
    Golden Charter monthly plan
    Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.
    I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.
    Can anyone tell me if this is worth continuing with as I have only paid £733.68 of this bill.
    I cannot find anything to say that in the case of my death (before the instalments are finished) the plan would automatically pay out for my funeral therefore would it be better for me to take out a sun life guaranteed plan which is a lot cheaper.
    • Rubik
    • By Rubik 26th Apr 18, 1:28 PM
    • 67 Posts
    • 135 Thanks
    Rubik
    Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.
    I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.
    Can anyone tell me if this is worth continuing with as I have only paid £733.68 of this bill.
    I cannot find anything to say that in the case of my death (before the instalments are finished) the plan would automatically pay out for my funeral therefore would it be better for me to take out a sun life guaranteed plan which is a lot cheaper.
    Originally posted by 1littleduck
    I would speak to GOlden Charter - and ask them to explain the additional charges. And why you are paying £30.57 a month for standard plan, when they advertise that plan for a monthly installment of just £16.45. Look back over your original paperwork and read the small print.
    • 1littleduck
    • By 1littleduck 26th Apr 18, 2:38 PM
    • 2 Posts
    • 1 Thanks
    1littleduck
    Thank you for the reply. I will contact them as soon as I get this straight in my head. The plan states 'standard' with a cremation and the funeral directors details. I will call into the funeral directors to see what details they have received. it also states that if there is any increase in disbursements, there will have to be paid by a member of the family when I am gone. I also notice they are advertising a plan for £3495.00 at £16.45 per month.
    • Mojisola
    • By Mojisola 26th Apr 18, 2:43 PM
    • 29,256 Posts
    • 74,720 Thanks
    Mojisola
    Hi. I am new and not sure if I should ask this question on this thread. I have had a Golden Charter monthly plan now for just over 2 years and today came to look over the total plan. I was at first under the impression that the plan was for just 5 years and to my horror, I have found out that it is over 16 years.

    I pay £30.57 per month for a standard plan which was quoted at £3525.00 but they have added on £2,344.44 for additional instalment charges bringing the total up to £5,869.44 which to me is an awful lot of money collected for the use of instalment collection.
    Originally posted by 1littleduck
    If you were going to pay over five years, your monthly payment would be £63.46.
    • badmemory
    • By badmemory 26th Apr 18, 5:52 PM
    • 1,624 Posts
    • 2,156 Thanks
    badmemory
    OMG that much! There are far too many people/companies taking their cut out of this which is making it so expensive. To me the whole point in having a "plan" is so that no one has to pay for anything else unless they really want too. Such as extra limos & extra flowers but certainly it should include anything which HAS to be paid, why else would you bother?
    • sheramber
    • By sheramber 28th Apr 18, 7:12 PM
    • 4,687 Posts
    • 3,519 Thanks
    sheramber
    If you are paying by instalments you may have interest charges added on. Does the paper work mention an interest rate?

    What the plan cover depends on what you take out, Varying from a basic cremation with no extras to covering everything.

    It is explained what you are covering in the plan information. If you don't think it is worth having the bulk of the costs covered against increasing costs then don't take out a plan. Then your estate will have to pay the increased costs on everything not just some of them.

    Third party costs are private charges and will vary greatly depending on where you are and who you use and the increases over the years. You may have a friend who conducts the service free of charge or your relatives may chose someone who charges a high fee. So there is no way a plan can anticipate what the charges will be .

    The plan decides what they will cover for the fees and any extra over that amount will be charged. Of course the fees may be covered by the amount.

    The FAQ explain what happens of you die before making all the payments. The plan is not an insurance plan, You are paying up the costs of a funeral.


    What happens if I die before I have made all of my payments?

    This will depend on the type of payment method you have chosen. If you are paying by 12 monthly instalments and you die before all payments have been made, the balance will be requested from your estate so your funeral can still be carried out. Or, the plan can be cancelled and the payments refunded (less £249 cancellation fee).

    If you have chosen the low cost monthly instalment option and you die within 12 months, all the money you have paid will be returned to your estate. If you die after 12 months but before all of the instalments have been paid, the balance will be requested from your estate so that your funeral may still be carried out.

    If you have chosen to pay by fixed monthly payments and you die within the first two years, the funeral director will receive the money you have paid plus an additional 20% provided your payments are up to date. Your family or estate will then have to pay the balance.
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