Funerals can be costly, with the average funeral costing around £3,500 – a large bill to leave your loved ones with in the event of your death. A death and subsequent funeral is a major event and must be planned thoroughly so as to provide the deceased with the dignity that they deserve. There are various requirements to be considered when planning a funeral such as the presence of a licensed funeral director, the choice of a suitable coffin, the hearse, the chapel, the time taken to complete the relevant forms, ministers, flower arrangements, notices and doctors, amongst other aspects. Furthermore, there has been a stark rise in the cost of funerals over the past few years due to the increases in third-party disbursements and unfortunately the funeral director has no control over these.
According to a source, ‘the average cost of a funeral has increased by 58% in the last seven years, outstripping inflation.’ With this in mind, it’s clear to see that one of the main benefits of taking out funeral cover or a life insurance policy would be to cover these costs, regardless of any rise in prices in the future. Planning for these eventualities before your death also allows you to make your own choices with regards to the requisite elements within the funeral, from the flowers to the coffin.
What is a Funeral Plan?
A funeral plan is not an investment plan as some people may think, but rather a future planning means to cover the costs for your funeral today; paying for a service in advance instead of paying money into an investment scheme in order to receive a return on your investment. It allows you to plan in advance to protect your loved ones from having to plan and pay for a funeral at an already trying time for them.
What is Over 50s Life Insurance?
An over 50s life insurance policy is one that is planned in such a way as to leave your loved ones with a lump sum that is tax free should you pass away. The money can be used to pay outstanding bills, funeral planning and related costs or can be used as a financial windfall for them.
Alternative Ways to Cover Funeral Costs
It is important to plan ahead and consider the cost of the funeral and other associated costs. This is where a funeral plan or an over 50s life insurance policy will come in useful, however there are alternative ways to cover funeral costs, although they may not be quite as cost effective or convenient as a funeral plan or over 50s life insurance.
These include traditional savings where you would put aside money on a regular basis to cover the costs in the event of your death and your loved ones could take on the planning aspect of the funeral and the burial. Another option is funeral payment which is a government subsidy if you are your spouse are on a low income or on benefits and require assistance to pay towards the cost of a funeral, you will receive a subsidy from the government. A further option is whole life cover. Some providers of over 50s life insurance offer this type of cover which does not cease at a certain age, but rather continues up to your death in order to cover the funeral costs.