Funeral Plans: Ten Things You Need to Know

“In this world nothing can be said to be certain, except death and taxes”. So said Benjamin Franklin in 1789. It was true then and now, 232 years later, it’s just as true.

Death is still a taboo subject and one of the most difficult for families to talk about, yet with the inevitability of death comes the funeral. The cost of a funeral is like another tax to the loved ones left behind. This is one small reason why the subject is so difficult to discuss.

Here, then are the TOP TEN things you should know about funeral planning.

1. The latest estimate for the cost of a funeral is over £2,800. In 2004 it was £1,920 and it is forecast to rise to £4,252 by 2016 by the same rate of increase of 6.85%.

2. Buying a funeral plan when you are still alive is regarded as a smart move to save the extra stress of the incurred expense for your loved ones after you have gone. Even if you have money to leave, that money will be locked up in probate (even the cash) and cannot be used for immediate expenses, leaving your family to foot the bill from resources they may not have.

3. Most people do not know what to do when a family member or loved ones dies. They often turn to a directory or a website, whereas a funeral plan would take away this uncertainty.

4. A funeral plan is not subject to inheritance tax and is not part of any calculation (means test) should you have to go into care while the plan is still running.

5. As part of your funeral planning, you can make choices about your own funeral, and the family can add any of their own personal touches if they wish.

6. There are usually no age limits to funeral planning, but in some cases acceptance into a plan is guaranteed if you are 50 or over.

7. Funeral plans do not usually restrict your choice of Funeral Director, allowing you to make the choice if you wish. Planners, however, will undoubtedly give you a list of Funeral Directors should you need one.

8. Let’s face it, funeral plans are like insurance (almost as sure as death and taxes) and will involve monthly payments. However, some are fixed cost plans, so that when the agreed payments have been made, no more will need to be paid.

9. Funeral plans differ from life insurance in the following ways (not an exhaustive list): will cover the cost of a funeral as agreed; not affected by changes in interest rates or inflation; you will never pay more than the cost of the plan; funeral plan money is protected, as mentioned above.

10. There are a number of funeral planners on the internet; there is no better time to start your funeral plan than now.

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