It may not seem like the obvious way to save but pre-planning, or more importantly pre-paying your funeral costs could save a substantial amount of money.
There are of course two compelling arguments that should make all of us want to put plans in place:
- Funeral costs have been increasing by an inflation busting 7% every year for the last decade. Now averaging more than £3,400, they could well exceed £6,000 in the next 10 years if costs continue to soar.
- We are all going to die -a little blunt perhaps but true all the same. We will die; there will (for most of us) be a funeral, there will inevitably be a bill itemising the funeral costs that someone will need to pay.
So what can you do?
A Prepaid Funeral Plan could be the key to saving money and removing the pressure of having to arrange everything from your family when the time comes. You pay for your services at today’s prices, effectively freezing the costs and therefore avoiding the impact of inflation.
How much will it cost?
Costs all depend on the level of service you choose and the company providing the funeral plan but usually range from £3,000 to £4,000. If you prefer to spread your payments, you can pay by instalments and some companies now offer fixed monthly payment plans from £23 a month for those over 50 years of age.
Are there any other options?
If you prefer to leave your family with a lump sum of money or want to keep monthly costs a little lower, then an Over 50s Life Insurance Plan could be worth considering. As long as you are between the ages of 50 and 80 (in some instances 85) and live in the UK, you are guaranteed to be accepted regardless of any health issues and covered for the full cash sum after an initial period of 1 to 2 years.
Premiums range from around £7 a month and are payable for life or until you are 90. Depending on how long you live there is a chance that you could pay in more than the plan pays out and because the cash sum is fixed, inflation will reduce its value over time, so keep this in mind when you are choosing the level of life cover required.
Could you get more life cover?
If you are considering the life insurance option and in good health, then it could be an idea to look at Regular Life Insurance as the cash sum paid out on death could be at least 40% higher. The application process is longer and does include health and lifestyle questions but could be worth the time and effort if it means you leave more money to your family.
How can you be sure of getting the best deal?
Regardless of whether you choose a prepaid funeral plan or an over 60 life insurance plan, it is important to compare quotes to ensure you get the best plan at the right price.
You can compare funeral plans or over 50 plans in minutes online using a comparison service like the one provided by Over50choices and help is available at the end of a phone should you prefer to talk through your options.