As people struggle with their personal finance and need to manage their day to day budget carefully, more are taking out prepaid funeral plans to ensure their final send-off is fully covered.
Last year, the Co-Operative Funeralcare, one of the UK’s largest providers of prepaid funeral plans, saw a 34% increase in sales of its ‘Gold’ plan.
Sales of their tailor made plans also increased significantly.
These sharp increases in prepaid funeral plan sales reflect their value for money.
With funeral costs consistently rising faster than inflation and sustained low interest rates affecting other types of savings and investments traditionally relied on to cover funeral expenses, pre-paid funeral plans provide an attractive option.
With the Co-op prepaid plans, all costs of the agreed funeral arrangements are guaranteed to be covered. This includes the costs of third party charges (disbursements), such as the doctor’s fee or crematoria fees.
There are a number of ways to pay so that you can spread the cost according to your budget. Currently the Co-op Bronze plan for example starts at £2,850 and one option to cover the cost, for those between 50 and 80, is over 12 months interest free with fixed monthly payments.
As Ian Mackie, Sales and Marketing Director of Funeral Planning for The Co-operative Group, commented: “Although some find it a difficult investment to make, many customers find it much easier if they think of their funeral plan as a way of celebrating their life or by planning it alongside their will.”
MoneyHighStreet comments: “Taking time to plan things in life invariably pays off. Whether it be planning a summer holiday, buying a car, sorting out house insurance, even how to spend the Queen’s Diamond Jubilee, try and take time to plan well in advance.
“It’s no different with funeral plans. It might not be a subject to think about or one that you want to talk about but with the absolute fact that all of us will (sadly) die at some point, deciding how, or indeed if, we want our life celebrated, whether we want to buried or cremated are all important decisions to make and plan for.
“Covering the cost too is important. An option is to look at a prepaid plan. You might prefer to set up a savings account and make it clear in your will that money in the account is to cover your funeral costs.
“Do your research and take steps to put things in place that suit your requirements – don’t keep putting this off though as if you’re not careful you’ll put it off for too long!”