Planning a funeral while mourning the death of your loved one can be an overwhelming task. If you don’t want to burden your family with this, you can always plan and pay for your funeral way in advance. There are two different methods to do so:
- Funeral Plans
- Funeral insurance
So, if you are planning to opt either of the options, here are few things to bear in mind.
Why use a funeral plan or funeral insurance?
Arranging a funeral is expensive and usually cost several thousand pounds. Many people usually worry that when they die, their family won’t have enough money for the funeral.
By taking a funeral plan or funeral insurance, you are making sure that the arrangements and services used during your funeral are paid well in advance. A funeral plan or funeral insurance can be taken for arranging your own funeral or someone else’s, only as long as the funeral is held in the UK.
No matter what service you opt for, make sure you are mentioning it in your legal Will. If you haven’t included your funeral plans in your Will, we suggest you to revise it and make the necessary changes. If you are worried about how much does a Will cost, you can consult your lawyer or take help of the Internet.
How does it work?
If you have taken a funeral plan or a funeral insurance, you can either pay the entire amount or pay in instalments to the provider. The payments you make are either invested in a trust fund or an insurance policy, which is then used to pay for your funeral whenever it is.
The primary aim of both the methods is to make sure that you have enough money until it is needed and can be used for making your funeral arrangements.
What does it cover?
What your funeral plans or funeral insurance covers will vary from provider to provider. Usually, the cost of the burial plot, flowers and catering aren’t included in most funeral plans. So make sure you are checking the details of the plans carefully before you finalise one.
How secure is your money?
As far as we know, the Financial Conduct Authority (FCA) does not control funeral plans, especially the plans covered by insurance or trust arrangements. However, the FCA does specify rules for each method of investment, so as to safeguard the capital amount paid by the customers.
If you are planning to pay your funeral bill upfront entirely, we suggest that you consider paying a part of it on your credit card. This is because, when you pay with your credit card, you tend to benefit from the Section 75 of the Consumer Credit Act.
This further means that you get extra protection if things go wrong with your plan provider or funeral director. You can even avail this service by paying at least £100 of the funeral bill upfront and then paying the rest of the amount in monthly instalments.
Questions you need to ask your plan provider and your advisor
Following are few questions we believe you need to ask while choosing a funeral plan or funeral insurance.
- Are there any cancellation charges?
- What the plan includes and what potential costs are not included?
- Are there any other expenses for the funeral and what happens if there are?
- Can you cancel the plan if the circumstances change?
- Does the plan allow you to choose a funeral director of your choice?
- What if the funeral director you chose goes out of business?
- What happens in case if the person the funeral plan is intended for dies abroad or away from their homeland?
- Will the funeral director be able to make funeral arrangements with different standards from the one their client chose?
- If you choose to make instalment, how long would you want to continue and do you have to pay interest?
- What happens if there are outstanding instalments when you die?
- What freedom do we get if we were to change the details of our funeral plan?
- How will the funeral planning company or your plan provider know about the your death?
You can even acquire more information about funeral plans and funeral insurance online. But make sure that you are conducting thorough research before going ahead and buying a plan.