Planning ahead doesn’t come readily to many, especially when it’s about the inevitable. However, it can not only take away the financial burden for your friends and family but it can also give you complete re-assurance that your wishes will be fulfilled.
Having a Funeral Plan can be a great help as no-one knows what is around the corner. With a plan paid for in advance, no-one has to worry about what type of funeral, coffin, how many cars etc. because it is all sorted beforehand.
Having a Funeral Plan in advance of a funeral may be of particular benefit if there is no-one capable or willing to make funeral arrangements at the time of death. So when the unthinkable does happen everything is already in place, which can be very welcome at a very stressful and emotional time.
From a financial angle, having a Pre Paid Funeral Plan means that no-one needs to think about where the money is going to come from to pay for the funeral, because it has all been pre-organised.
Finally, for those religions that have strict rules on what happens after a death, having a plan in place gives peace of mind knowing that all arrangements and requirements are clearly understood and will be observed.
The best way to guard against inflation
Many people have no idea of the cost of a funeral until one has to be paid for and that the cost rises each year. With an average funeral in 2015 costing over £3,500, by 2021 the cost is expected to rise to £5,420.
Saving a similar sum over the same time scale in a bank or building society account will not give the same return as a plan to pay for a funeral.
A Funeral Plan is valuable to a family in more than one way. A Funeral Plan unlike a savings account is not counted as an asset. So, for the assessment of care fees, savings count as an asset, but not the Funeral Plan, which retains its value to the family and will not be taken out of the estate costs.
Also, worth bearing in mind is that there is no tax to pay on the gross value of your plan, when taking at the time of need. This is another excellent reason why Funeral Plans are such a good investment.