Adverts on television encouraging you to purchase a prepaid funeral plan are very common these days. But why should you consider purchasing one?
The most obvious reason is it will save you and your family a lot of money! The cost of funerals are going up every year. Unlike other investments, the cost of buying a funeral doubles every 10 years!
Somebody at the age of 50 who takes out a prepaid funeral plan today at £3000 will have no more to pay for the complete funeral when they pass away. If this person lives another 20 years, when it is time the funeral is needed – the cost would be £12,000. However because the funeral has been prepaid there will be no more money to pay. So the cost after 20 years would still be £3000 for this person. Even if they live into their 90’s this person’s funeral cost would still be £3000 as they prepaid for it when they were 50 years old. This could save you £9000 or more!
As a professional law and finance advisor, I have many people come to me and say things such as “I have already put the money into an ISA and we don’t need to buy a prepaid funeral plan”. The problem with this is for example £3000 in an ISA will currently earn 1% – and that’s if you’re lucky! When 20 years pass by that will be worth £3,660 which means your family will have to find an extra £8430!
Another thing to be aware of is not all prepaid funeral plans include the same cost covers. Many plans only include the cost of the funeral itself. Other items to consider are doctor’s fees, minster’s fees may not be included in the plan and will result in additional costs.
Here at Atheneys Law and Finance we explain how prepaid funeral plans work in plain English and can help find the plan that works best for you. Plans can be paid in a lump sum or by instalments from as little as only £12.30 per week. Our legal and advice services cover Dorset and Hampshire and you can arrange an initial consultation meeting with us for free! Please see our contact details below.
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