Is A Prepaid Funeral Plan On Your Shopping List?

I’m sure choosing a prepaid funeral plan isn’t the first thing that comes to mind when writing your shopping list but considering soaring funeral costs and the impact arranging a funeral has on the family, it could be one of the smartest moves you make.

Do you have a prepaid funeral plan?

Do you have a prepaid funeral plan?

Freeze costs to save money

Prepaid funeral plans give you the opportunity to arrange everything in advance and pay at today’s prices, effectively freezing the funeral director’s prices and avoiding the impact of inflation.

With average costs of more than £3,400, funeral prices have risen by around 7% every year for the last decade, a trend that unfortunately shows no sign of stopping. If this continues over the next 10 years, funeral costs could easily exceed £6,000.

Shop around to get the best deal

The other advantage of doing everything yourself in advance is the fact that you are more likely to shop around and compare funeral plans for the best deal; something families are very often loathed to do when the time comes.

With the increase in availability online, not only are funeral plans more accessible, there is now more competition which means a number of companies offer various incentives such as a reduction in price or free vouchers.

Using a service like the one provided by Over50choices, you can compare prices, choose from a range of leading funeral plan providers, pay the lowest prices and get a free gift.

Pay the price

These days there are a number of ways to pay for a funeral plan, making them more affordable to a much wider audience. You can choose to pay in full with a single payment of between £3,000 to £4,000 depending on the level of service you buy; pay by instalments over 1, 3, 5 and 10 years or opt for lower fixed monthly payments from £23 depending on your age.

The alternative solution

If you want to keep your monthly costs a little lower or prefer to leave your family with a cash lump sum so they can make the arrangements, you could choose a Life Insurance Plan.

A Guaranteed Over 50 Life Insurance plan may be worth considering if you are looking for a simple plan that guarantees to cover you regardless of the state of your health. Premiums start from around £7 a month and you are fully covered for the cash sum after an initial period of 1 to 2 years; however keep in mind that as the amount of life cover is fixed, inflation will reduce its value over time. Also as premiums are payable for life or until your 90th birthday, there is a chance you could pay in more than the cash sum paid out; it all depends on how long you live.

If you are in good health and happy to complete an application that includes health and lifestyle questions, then it may be worth comparing quotes for Regular Whole of Life Insurance. The process does take longer and there is a chance you may not be accepted (in which case you could still apply for the guaranteed over 50 plan) however if all is ok, you would be covered for the full cash sum immediately and the money paid out could be at least 40% more, so more money for your family when the time comes.


This article was written for MoneyHighStreet by Ashley Shepherd; Managing Director of Over50choices, a personal finance and comparison website for the Over 50s, authorised and regulated by the Financial Conduct Authority.

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