If you think most goods and services are always going up in price, consider the cost of a funeral. The average funeral cost is rising faster the inflation and most savings plans.
Between 2004 and 2014 the average funeral cost has risen by over 80% and now costs approximately £ 3,590. This rises to around £ 6,000 when you add on things like flowers and memories. Over the next 20 years the number of deaths in the UK will rise as the baby boomer generation passes through, putting pressure on funeral arrangements in general. It is estimated that by 2020 the average funeral could cost around £ 9,000. (source: Longevity Center UK 2014).
Given the growing problem of having to pay for costlyerals with very little financial resources, many people have begun to use pre-paid funeral plans to better manage these unavoidable end-of-life expenses. Exactly like they sound, pre-paid funeral plans are essentially payments plans that allow a person to pay for their funeral arrangements gradually over time, before their actual death ever comes.
While death is inevitable, it is also unpredictable, so this has given countless people the opportunity to be better prepared for whenever that moment comes about.
Ideally, whoever is paying for the pre-paid funeral plan will live a long life and would have paid the entire cost of their own funeral, so saving their grieving family members from that responsibility in the event of their death, but sadly this is not always the case.
Pre-paid funerals can be a great idea. But now for the tricky bit, not all pre-paid funeral plans are the same so you need to do your homework.
Many of the companies providing these services will hold your money in special trust funds, so in order to avoid having your money abused or outright stolen it will be necessary for you to know how this process works. If the company will be approaching interest on the money you give them, as many do, it will be good for you to learn how and for what purposes they will be using that interest.
Regardless of which pre-paid funeral company you choose, you must be absolutely sure to very clearly read the contract that they present to you. Because these are long-term agreements, there may be portions of it that you are fine with during signing that you might not be fine with a decade or so later. There may come a time when you might want to be buried in the ground, although your contract is set for you to be cremated. Given all of the unforeseeable changes that any of us may go through, you should make sure that you are able to make changes to your pre-paid funeral plan as and when you need to down the line.
No matter how good or bad the economy is at any time, people will continue to die, and their remains will still have to be taken care of in proper ways. Even if the surviving family members have very little money, their deceased loved ones will still need to be buried or cremated. For this reason, among others, taking up a pre-paid funeral plan could certainly be a good and beneficial thing someone can do to relate the future financial burden on their family.
There are a lot of benefits to buying a pre-paid funeral. The greatest benefit to buying a funeral is the affect that it will have on your family. Once you pass away there will be a point of much pain for your family, but the pain may be even worse when they are forced to make costly funeral plans. Everyone will need to have a funeral when they pass away, having a pre-paid funeral plan will make it much easier for your family. The greatest benefit to having a prepaid funeral idea is that your family will be given the time to grieve that they need without having to make arrangements for you. These will all be taken care of by the funeral company.
Another reason that people plan ahead for their funeral is so that they do not pass the burden of unexpected expense onto their loved ones. Even if you have life insurance, that money will not be with your family for a few weeks, anderals can cost thousands of pounds. By making monthly payments to a pre-paid funeral, you will insure your family will not have to worry about money.
There are many companies that offer funeral plans. You can do some light research on the different funeral products and services that are offered, and make a decision on which is best for you. This will allow you to make a plan for your funeral that you can pay off over several years, so that you do not have to deal with the expense all at once.
The internet is a good place to start and has a vast amount of information as well as contact details for funerals in your local area which offer these plans. You can find providers and funeral directories which can give you a quote for different funeral plans. This is the simplest route for conducting your research because you can look online for information, then contact the funeral company by telephone and inquire about the plans they offer. You can look through funeral directories too and conduct the same process. In any case, the purpose is to acquire as many quotes as you can so that you can weigh all of your options and find a price that best suits your needs and your budget. Some funeral companies will also let you visit them, or some will provide you with a home visit so you can discuss your needs face to face.
You should also understand how they will handle your money, and how the payment plan works. Before you agree to a pre-paid funeral plan, you need to make certain you understand how the transaction works. Some funeral companies, for example, require the entire payment made up front in a single transaction while others offer smaller installment payments over time. These are the two most common transactions offered by funeral providers. Instalment plans are the most flexible, particularly for people who have fluctuating cash flow. But some providers still request the fee be paid in full at once. Therefore, it is important to make sure you understand your cash flow position so that you can pick a plan that best meets those needs.
Before you buy your pre-paid funeral plan , you need to know exactly what you are getting. The cost is a critical element when you are deciding on a plan, but you also need to know what your costs include. Most plans range from a basic funeral to a comprehensive funeral. As a result, the prices may vary dramatically based on what is covered and what services are offered. Before you sign-up, you should know exactly what services you will receive. Some plans vary in terms of the distance that they will travel to collect the remains of the Deceased. Some do not cover a church service or transportation costs. Some do not cover headstones or memories in the burial costs. This is why it is important to know every detail of the plan before you buy. Lastly, make sure that you look carefully at all the quotes you gain while you are searching for the right pre-paid funeral plan.
Pre-paiderals are definitely a great idea to look into and can save your loved ones from financial burdens and emotional stress at such a sad time. But do your homework first and make sure you get what you want.
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