Funeral Plan vs Life Insurance
As morbid as it may seem, planning your own funeral is becoming more and more common among Britain’s who want to safeguard their families from financial hardship and unnecessary stress.
The cost of dying in the UK is rising by the day, with the latest figures reported to reach almost £9,493 in 2019. These price rises show no signs of slowing down, with costs set to climb even further in the coming years.
We are often asked by our customers whether they need a funeral plan if they already have life insurance, but the truth is, they do, and so you.
Avoid funeral debt
The number one reason we recommend a pre-paid plan over life insurance is to avoid leaving loved ones in funeral poverty and debt when the time comes.
While some life insurance policies will pay out enough to cover the cost of the funeral, the funds are unlikely to be received in advance of the funeral taking place.
This means families could be left having to find the money to pay for the services themselves, and in many cases, this could lead to debt.
Avoid funeral costs
The cost of a funeral rises every year, and this isn’t going to stop. The benefit of a pre-paid funeral plan over a life insurance policy is that the cost of the end-of-life service you choose and pay for is locked in.
If you rely on the payout from a life insurance policy to cover the cost of the funeral, your family will pay the price in line with inflation between now and your passing, and considering at how these prices have hiked over recent years, they could be in for a nasty surprise.
A pre-paid funeral plan will allow your funeral to be paid for well in advance of your passing and will fix the cost at that of the day you bought the plan.
Ensure your wishes are granted
It’s not something you’re likely to spend much time thinking about, but it’s not unusual for people to have an idea of how they would like family and friends to say their goodbyes when the time does come.
Unlike life insurance policies, pre-paid funeral plans allow you to decide exactly what you want your end of life celebration to look like. This is an agreement between you and the provider and documented to ensure these wishes are granted.
Families can make additional contributions to your funeral at the time if they so wish, but the main elements of the day will be decided on, and paid for, by you.
Life insurance policy
You may have considered taking out a life insurance policy to cover the cost of your funeral or may already have one in place on the understanding that it will serve this purpose, but these policies are not allocated to a funeral director. This means there are no guarantees that the money will be used in this way, or indeed that the pay-out will cover the costs.
In summary, a pre-paid funeral plan is the only way to ensure peace of mind, with the security of knowing your family doesn’t have to worry about a thing, at what can be an already turbulent time.
If you’re interested in finding out more about pre-paid funeral plans, one of our experts will be happy to discuss your options and provide guidance, with no obligation. Get in touch today.
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