The phrase 'you can't stand when you're gone' is usually used to encourage people to unwind their purse strings a little and revel in life while they still can.
Unfortunately, with regards to funerals, we all know that somebody will have to foot the bill when the time eventually comes and, with the cost of funerals rising at 4 times the speed of inflation[1], that may leave our families with a potentially difficult finances.
This dramatic rise in funeral prices has resulted in 200,000[2] people annually taking out funeral plans to protect their families from a potential difficult financial situation. A completely independent report[3] by Fairer Finance figured, simply because they lock in to the price of a funeral during the time of purchase, funeral plans can provide a good financial investment.
So what are the figures? Well, the cost of a funeral has been increasing in an average of 5.45% per year since 2011[4], as the current cost effective easy access ISA currently has a rate of only 1.3%[5].
So during 2022 the typical funeral cost lb4,086, in the event that price is constantly on the increase at the same rate it has for the last seven years, it will reach lb5,924 by 2024[6]. The Dignity Funeral Plan Savings Calculator suggests that anyone investing those funds in an ISA today might be left lb1,171 short for that average funeral by 2024, whereas when they would take their money into a Funeral Plan, they would be fully covered.
The Fairer Finance report acknowledged that while Funeral Plans represent value for the money, deficiencies in regulation and consumer protection in the market means consumers must do their research to avoid getting stung. Here, Dignity Funerals, who commissioned the report and whose Diamond plan includes a Defaqto five star rating, put together tips for anyone looking to identify a secure, value funeral plan investment.
- Find a service provider who is registered having a recognised regulatory body
When you are looking to get a prepaid Funeral Plan, you need to see if they're registered having a professional body, like the Funeral Planning Authority . [GJ1] [BG2] The FPA is one of the recognised regulatory bodies that regulates providers of Funeral Plans in the united kingdom to make sure that customers obtain the funeral they taken care of, when it's needed. Any company registered using the authority has to be employed in line having a algorithm along with a Code of Practice that protects the interests of consumers.
- Read with the fine print
All funeral providers work differently and it's important to go through the small print to make sure quality of service is guaranteed when it comes to your funeral. Some Funeral Plan providers simply arrange the funeral plan and so the funeral is sub-contracted for an independent funeral director, while some have their own dedicated team of funeral directors in their company. We find this second option provides greater treatments for the caliber of the funeral director, so make sure you check what's included.
- Be sure that your cash is protected
Many of us aspire to remove our funeral plans a long time before our actual funeral, it is therefore important to ensure that your funeral it's still protected later on and also to check if anything might be susceptible to change. Take a look at where your hard earned money is going to be placed; companies that invest your hard earned money right into a secure trust fund represent a secure option.
- Will the Plan move beside me?
Not all plans are portable and if you're likely to move house before your funeral, it could impact your policy. Searching for a provider with funeral directors nationwide provides you with extra flexibility and reassurance. You need to know you're guaranteed the same top quality of service and care anywhere you go, and that genuine an expense for moving your plan.
- Sharing your final wishes
Documenting funeral wishes for example whether you'd should you prefer a burial or cremation or if you have special requests for example songs to be played in the service will protect those left out from making difficult decisions when it's time.