Should you invest in a pre-paid funeral plan? There are definitely benefits, but before you commit to any arrangements or costs, it’s essential to weigh up pre-paid funeral plans pros and cons first.
To help you out, we’ve made a list below of all the pros and cons you need to know. It’s all part of preparing for a death, as much as we don’t like to talk about it. Read them through, think them over, talk to your loved ones, and decide what works best for you.
Pre-paid funeral plans: the pros
1. It can save your loved one from stress
Funeral planning can be difficult for grieving loved ones – to say the very least. Not only might they worry about what you would have wanted, but there’s the financial stress to deal with too. If you think they might struggle (and you feel able to take it on), a prepaid funeral plan could give you all peace of mind. Discuss it with them to see if it’s something they would be open to.
2. You can make sure your wishes are carried out
If you have specific wishes for your funeral, a prepaid plan allows you to ensure they happen.
For example, if there’s a particular coffin or venue type you’d prefer for the service, these can be paid for in advance. Some providers will also help you arrange the celebrant, vehicles, crematorium fees, and other add-ons. It all depends on the budget available and the plan you choose.
Finer details that don’t come at a cost – like a certain dress code or reading – may not be guaranteed. However, you can still make sure they’re noted and passed on to your loved ones, so they know exactly what you want. Before you make any payments, double-check exactly what is included in your plan. That way you’ll know what needs to be arranged separately.
3. Rising funeral costs can be avoided
Inflation means that funeral prices are likely to go up in the coming months and years. However, by arranging a pre-paid plan, you can fix the balance so that you only pay the current price. You’re essentially ‘protecting’ your funeral against rising costs during difficult financial times, which means your loved ones won’t have to worry about finding the funds later on.
4. You can pick a plan to suit your budget
Most pre-paid funeral providers offer a range of plans to suit every budget, so you can figure out an arrangement that works just for you. Loved ones can find it challenging to make financial decisions when emotional and grieving, so having the budget set and covered ahead of time will save a lot of upset and stress later on.
5. Some providers let you pay on finance
You don’t have to have the complete funds for the funeral ready right now. Many pre-paid plan providers allow you to pay over a 12-month period, often in interest-free instalments. There may be a small deposit to cover at the beginning, but this isn’t an additional cost; it will be deducted from your final total.
Pre-paid funeral plans: the cons
1. Not every detail can be covered
While a pre-paid funeral plan can cover a lot of your wishes, there are some details that can’t be included. Things like funeral songs, for example, might not be guaranteed on the day. The following is also not usually included in a pre-paid funeral plan:
- Burial plot (this can cost £1,000s) and some burial fees
- Headstone/memorial
- Funeral notices
- Order sheets
- Embalming
- Flowers, catering and other costs for a wake
Your provider should be transparent about everything you’re paying for. Keep in mind that wake arrangements are rarely covered by pre-paid funeral plans, so you may want to put extra money aside for this.
2. Funeral plans aren’t always flexible if you move
If you pay for your plan and then move abroad, or even to just another part of the country, you may not be able to move your funeral plans with you. This isn’t the case for all providers, but if you think you might move, you should check with them first. Make sure you know how flexible your funeral plan is and whether there are any surprise conditions.
3. You have to have the money ready
It goes without saying that funerals come at a cost. Without a plan, they’re usually paid for from your estate, but with a pre-paid plan, you need to have enough money ready to cover the price. The good news is, (as mentioned above) many providers allow you to make monthly instalments if you don’t want to pay the total upfront. This way, you can spread out the cost over a set period of time to make it more manageable.
4. You can’t withdraw funds once they’re paid
When money is paid into a funeral plan, the funds are no longer accessible. Usually, they can’t be released again until death (but check contracts to be sure). You probably know this already, but it’s helpful to be aware of it before you start paying. That way you can make sure you’re budgeting correctly and not relying on that money for anything else.
5. Funeral plans may not go ahead
If you pay for the funeral in monthly instalments but pass away before the total balance is covered, many plan providers will not be able to go forward with your funeral wishes. Instead, your loved ones will usually be refunded, and they will need to start plans from scratch at the current rate. If you believe your death may be imminent, consider whether your family or friends should make the plans instead.
We hope this pre-paid funeral plans pros and cons list helps you reach the right decision for you. It’s a personal choice, and there’s no right or wrong way to go, so take your time if you’re still unsure.
You can also reach out to the Untangle community when you’re looking for more advice. The Funerals group is a good place to discuss any concerns or questions you might have.
For more advice and to connect with others who share a similar experience of loss, download the Untangle Grief app.
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