Do you need a Funeral Plan or just a plan of action?

If you’re reading this it means that you’ve taken the decision to look forward towards the end of your life to make sure everything is as easy as possible for those you will leave behind. At Integrity Funeral Care we applaud you for so doing. We know it can be hard to contemplate our own mortality, but we also know that effective planning now, can save a lot of heartache for our families when the time comes.

We’re often asked for our advice concerning funeral plans – effectively insurance policies designed to cover the cost of a funeral. The attraction is simple, to save our loved ones from having to find the money to pay for our final farewell.  In reality, no funeral plan will cover the entire cost and it is really important the policy holder understands this before paying any premiums. 

It is important to note at the outset that Integrity Funeral Care is not a financial advisor and as such, the company is very limited in the advice it can legally give to members of the public. However, what we can do is explain your options so you can make a more considered decision for yourself. Many funeral directors use the selling of such policies as an added income stream; we at Integrity do not, and have no vested interest in their sale, although we will happily refer customers to a trusted Funeral Plan provider on request.

What we would say from the outset, is that we believe the current funeral plan market as a whole can raise people’s expectations about what will or will not be covered.  We recently supported MoneySavingExpert.com in providing details of the costs that are not met by the policy, and those details can be found here:

 https://www.moneysavingexpert.com/family/prepaid-funeral-plans/. 

The legal situation

Funeral Plans only began to be officially regulated in July last year, following concerns raised in the media and by consumer groups that some policies were far less financially worthwhile than others. The industry is overseen by the Financial Conduct Authority (FCA) to make sure that in future all policies are fair, value-for-money and subject to formal appeal in the event that there is a dispute with customers.  However, when deciding on whether a Funeral Plan is right for you, we suggest asking yourself the following questions:

How old are you?

If you’re over forty-five a Funeral Plan might not be the best choice for you. A life insurance policy would possibly be better value to yield the money your family would need to pay your funeral costs. For those forty-five or under, a Funeral Plan is worth investigating, not least because the premiums will be relatively low.

Do you already have life cover?

Most life plans carry a sum assured in excess of the cost of a funeral so there may be little point in doubling up by taking out a funeral policy as well. We would recommend you check with your policy provider to find out if this is the case.

Do you have savings?

If you’re in the fortunate position of having some personal savings it may not be the best use of them to buy a Funeral Plan when the monies already there could cover the cost. If you are unsure, we would recommend you speak to a professional financial advisor.

Do you know what a funeral plan will cover?

We find many people are very surprised when they realise what is, and more importantly, what is not covered by a Funeral Plan. Generally included in the list of services which they will not pay for are:

• Cost of burial

• Floral tributes

• Premium or bespoke coffins or caskets

• Limousines

• Orders of Service 

(As mentioned above, more details can be found at:  https://www.moneysavingexpert.com/family/prepaid-funeral-plans/.) 

If after reading this and you are still unsure how best to proceed, by all means call or email us at Integrity Funeral Care and we would be very happy to discuss the matter with you.

Do you know what you want to happen when you die?

Everything we have talked about here so far, has been about money, but finance is not the only area where you can provide certainty, and peace of mind, for your family. Do you want to be buried or cremated? Do you want a eulogy? What music would you like played at your funeral? Leaving these questions unanswered can cause anxiety for those making the arrangements, but this can easily be avoided. To leave a lasting record of how you would like your funeral to take place, please visit My Final Wishes.