In a time when saving money is very important, and people have little going spare, it’s safe to say that nobody wants to leave their loved ones to pick up a large bill for the costs of a funeral. Of course, no-one wants to think about the day that this will happen. However, by putting in a little forward planning now, a lot of money and hassle could be saved in the long-term.
Unfortunately, a lot of people pass away without thinking about putting money aside to cover their funeral - leaving their loved ones in a tight financial situation. At an average cost of just over £3,000 and rising all the time, these aren’t usually costs that can be found easily.
Reasons to take out a funeral plan
These rising funeral costs are one of the main reasons to take out a prepaid funeral plan. These allow you to pay off the costs of your funeral in advance, meaning that you pay at today’s prices and when the time does come, the burden isn’t passed to your close family who are left behind.
A funeral plan will cover the majority of details required on the day of a funeral, such as the hearse, coffin, doctors’ fees and fees for the church or crematorium – depending on your preference.
The other main benefit of taking out a funeral plan is that the price of your funeral is fixed from the day you take it out. This means that it is a great way of beating the above-inflation price rises experienced within the funeral industry, and it is a cost-effective way of paying for the funeral compared to paying at the time of need.
If this sounds good so far, here are the three main ways you can pay for a set funeral plan:
- Pay in full
If you are fortunate enough to have some savings put by then making a funeral payment upfront is a great way of settling the costs in advance. This means you have got your funeral at today’s prices and beaten inflation in the process. It also means you don’t have potentially large sums of money coming out of your bank account each month, and don’t have to pay any interest on a borrowed sum.
- Pay over a pre-determined time
If you are able to do so then paying off the full balance of the funeral within an allocated time is an effective way of clearing these costs. You’ll usually be given the option of making the full payment within 12, 24 or 36 monthly instalments.
Doing this allows you to make payments suited to your budget, while also clearing off the costs of your funeral within a relatively short period of time. You’ll then have total peace of mind when the payment schedule is complete.
- On-going monthly payments
Specifically designed for those aged between 50 and 80 years old, it’s also possible to make much smaller monthly payments into the plan up until the day you die. This is a great option for those on a tighter budget yet want to cover these costs in order to remove the burden from those closest to them.
Essentially it works like an insurance payment. With this option, the younger you are when you take out the plan, the cheaper the monthly payments will be. You will need to be paying into the plan for at least two years before the funds can be released following your death.
For more details about the range of funeral plan payment options from The Co-operative Funeralcare visit www.co-operativefuneralcare.co.uk