Funeral plans haven’t always been acquainted with the most positive of opinions, a common mistake which has been fuelled by not so accurate comments typically known as myths. This negative stigma has left many unwilling to invest in funeral plans and in their future.
What is often overlooked are the facts. Funeral prices are soaring, the death discussion is often neglected and your wishes aren’t always clear. A funeral plan gives you the chance to plan a funeral that reflects your wishes.
Funeral Plans Are Expensive
Funeral plans are widely regarded as expensive outlays that give very little in return, this, however, is a huge misconception. Research undertaken by Bath University found that in the last decade funeral prices have soared by a whopping 80%.
Currently, the average cost of a funeral is £3,700, a figure that doesn’t incur flowers, obituaries, car hire and extra tributes. A figure that is also expected to rise to a staggering £7,500 by 2020, according to Bath University.
A funeral plan, on the other hand, can cover all these aspects and cost as little as 93p per day. It’s a plan that works within your budget and takes care of important future plans. The majority of plans also work on a fixed rate basis, meaning your monthly payments won’t increase even if funeral costs rise.
Given the insane rise in prices, investing into a funeral plan ensures you and your loved ones covered for the future. It minimises your costs and enables you to design a funeral that best depicts your personality.
You Pay In More Than What You Get Out
It’s a common myth that funeral plans ultimately end up costing you more than an actual funeral. The truth is companies once sold fixed term contracts that tied a person into a monthly payment plan until the day they died. In which case a person would pay considerably more than their funeral costs.
Fixed term contracts raised many concerns that have left people wary of signing up to funeral plans in fear they will be ripped-off. It’s essential to understand what your plan covers, the price each month and how long you will be paying that fee for.
Plans are designed to be paid over a set amount of years with a consistent monthly fee that works within your budget. Once paid the plan is stored away and your funeral is fully paid for and in place for when the time comes. And if you wish to make any amendments you can revisit your plan and make adjustments for a small fee.
Attention: You Aren’t Tied In For Life!
People often avoid funeral plans as they assume they will be tied in for life. You’ll be happy to know that’s not true, there is a get out of funeral plan get out of jail card. You can easily cancel a funeral plan and get the majority of your money refunded. Cancelling a funeral plan means you are charged a small fee that is a fair percentage of what you paid in. While this seems preposterous, cancellation fees aren’t unheard of, if you cancel a holiday, flights or a restaurant booking then you get charged.
Of course, if this is in the first few weeks companies offer a cooling off period in which a person has a set amount of time to cancel a plan without any costs. Ultimately this means you’re not tied into a plan, you can leave if you so desire.
This Isn’t What I Wanted…
One of the biggest misconceptions is the ‘hidden’ costs that come with funeral plans. However extra costs usually arise from added services that weren’t included with the plan your loved one chose.
When signing up to a plan it’s essential that you and you loved ones understand what services will be covered. Naturally basic plans cover the essential items but cost considerably less each month. Typically floral tributes, limousine hire, room hire, obituary notice and doctors fees aren’t included. Whereas a premium package will cover considerably more services for a higher fee.
Extra services can be added but these need to be paid for, which built up the stigma that funeral plans have hidden costs. In reality, funeral plans haven’t been fully disclosed with loved ones. To avoid unexpected costs that could leave loved ones shocked and confused each party should be fully aware of what the plan actually covers. With that information, people can factor in any added costs and services they need for the funeral.
“I’m Financially Secure”
The chances are you have savings, a steady job and you are financially secure but there is no sure way to know you will be in the future. Sadly life isn’t always predictable. It’s surprising how life’s curve-balls can impact on your finances and your future.
A funeral plan is very much an investment. It ensures that you’re covered and that your family won’t be left inundated with funeral costs. Given that funeral costs are soaring a funeral plan seems a smart investment for the future. A fixed rate plan keeps costs low and as you’re not tied into a plan you have the option to cancel it if you desire. This gives you options and ones that could be fruitful in the future.
Like anything in life, there has been a negative response to funeral plans. Much of which comes from choosing the ‘wrong’ provider. Researching the company and analysing customers views is essential when it comes to investing into a funeral plan.
Naturally larger companies are more reputable given their success within the market. While true, their large customer base means one-to-one customer service is limited. It’s worth researching into smaller companies with lesser clients. They are more likely to build relationships and have less chance of overlooking your specific requests.
Funerals Never Represent The Person
Buying into a funeral plan may seem like you are investing in a strict and structured funeral and one that doesn’t reflect your vibrant personality. This, however, isn’t the case, the funeral plan gives you the option to add any personal touches you desire.
The entire plan is worked around you, your requests and your preferences. Whether you want an environmental, non-religious or futuristic funeral, the plan can incorporate that. The choice is all yours, it’s your funeral and it’s your plan.
“I Don’t Need A Funeral Plan”
There are a lot of people who simply don’t believe in investing in a funeral plan. Mainly because they don’t believe they need one.
A funeral plan isn’t a death document it’s a life investment that protects your loved ones and adheres to your wishes. It simply means you are prepared for the very distant future. As funeral costs rise it’s wise to invest into a funeral plan. A small monthly payment for a set number of years sets you up for life.
“My Family Knows What I Want”
The death talk is one that is often neglected. Sitting down and discussing your wishes makes everything much easier when the time comes.
The Damsons Annual Report found that 7% of Brits don’t want a hearse or loved ones to wear black. Whilst one-quarter of Brits would like their loved ones to go out drinking and dancing. Having a document that clearly outlines your wishes makes everything clearly to your loved ones. It provides comfort to your loved ones during a difficult time.
The Myth Busted
Over the years prepaid funeral plans have been given a bad rep, primarily due to false information. Quite often the plans haven’t been fully explained or researched. While they are genuine factors that do need to be considered it’s also important that you invest in your future. Not only does it save you money it gives your loved ones the time to grieve without stressing out over funeral planning.
Funeral plans can ease your worries, reduce your costs and protect your family.