More and more people are starting to set aside funds to ensure that their family and friends don’t need to cover the entire cost of a funeral and memorial service. Funerals have become extortionately expensive in recent years, with the average cost of dying in the UK rising by as much as 90% in just ten years. Saving towards your funeral is a smart way to prevent these rising costs and achieve some peace of mind for your family.
There are three primary methods for end of life savings;
You could put money aside in the traditional way; in your bank, building society, or a cash ISA. This is attractive because it does not usually involve any contractual obligations. However, this will not guarantee, when the time does come, that your family will have enough money to cover the cost of the funeral that you deserve. Today’s funeral prices will not be tomorrow’s, with the rising cost of funeral care showing no signs of slowing down.
Over 50’s Life Insurance
Life insurance was established for customers to provide funds for their dependents in the event of their death. Over 50s life insurance is widely advertised as an alternative to funeral saving, as it can provide a lump sum for your beneficiaries that can be used to cover your funeral expenses and any of the associated costs, or left as a form of inheritance. Different policies work on different principles, so it is important to make sure that your life insurance policy reflects your wishes.
There are several drawbacks with life insurance policies for funeral planning, however.
As we don’t know how long we are going to live for, it is impossible to know the actual amount of cover we are going to need for the funeral at the point of our departure. People often rush to get additional ‘top up cover’ several years down the line when they realize the cost of a funeral has exceeded the level of cover they have with their life insurance payout.
It can also take several weeks and even months for some policies to pay out, especially if this money gets caught up in probate. One last thing to consider, is that the average life insurance policies also tend to get more expensive the older you get, and often you may end up paying more in that what you get out.
A Funeral Plan
A funeral plan works differently to over 50’s life insurance, providing a more secure way of funding your cremation or burial, and memorial service. Rather than putting money aside each month into a savings or cash isa account in the hope it will be enough to cover the cost of your funeral, a funeral plan allows you to guarantee that the funeral directors services are locked in at today’s prices, as well as provide peace of mind for the family that everything is already organized and planned in advance.
The simplest funeral plans cover the cost of a sedate casket and a cremation, while more ornate options allow you to organize your own procession and hire limousines for your friends and family. Funeral plans tend to start at manageable prices of up to £20 per month, and just one phone call is needed and everything is put into place for your loved ones, whereas life insurance policies and traditional savings are much more difficult to access.
Capital Life Funeral Plans
Capital Life Funeral Plans is proud to offer five classic funeral plans to suit your budget and your personal considerations. Few things are as important as having a say in your own end of life planning. We’d love to hear from you, so contact us and we can talk about how our funeral plans could help you save your friends and family from the hassle, the cost, and the emotional burden of funeral planning.
Source: All facts and figures were sourced from the SunLife Cost of Dying Report 2017