09 Mar 2015

A question about : Pros and Cons of Pre-Paid Funeral Plans

I cannot see an earlier thread on this topic, but if I have missed one then apologies in advance.

My parents, in their late 80s, are looking into these plans and I have no experience of the advantages and/or disadvantages of using them, so thought I would consult the collective wisdom of MSE, hoping to be able to tap into some actual experience.

Obvious advantages seem to include fixing the cost at today's level and being able to negotiate exactly the arrangements you want for yourself. Against that, what happens if the Funeral Director involved goes out of business?

I am sure there are many other points to be considered

Best answers:

  • The plans are normally with an insurance company, not directly with the undertaker, so that's a non-worry.
    And it's been discussed very recently - only one page down at the moment
    https://forums.moneysavingexpert.com/...html?t=1749865
  • tbh I don't know why people bother with these plans. If cost is likely to be an issue, then why not set aside some money in a joint account with whoever is going to have responsibility for arranging the funeral. The money passes automatically to the surviving joint account holder, and access is not held up by probate.
  • hi
    my parents and grandmother
    have these pre paid funeral plans
    as far as i can work out the pay a
    small insurance premium each year
    which cover the cost of the funeral
    they didcussed with the funeral director
    what their wishes were and it is
    also in there will what is to be done
    and where they are to go
    i personally think they are a
    good idea as it takes all the stress
    off the family
    just my opinion
    kas xx
  • Thanks, everyone
  • Bit late to join this thread, I think, but I came across it when searching for "Funeral Plans" for myself.
    My mother died in April. We have all been just so relieved that she (and my dad, still alive) have pre-paid Funeral Plans. Not only have the family been relieved of the worry of cost, there was immediately a named Funeral Director we could contact, 24/7, so we didn't have to search for one. The funeral arrangements couldn't have gone better, and everything was beautiful, but as we were told - we had Ј4,000s-worth of funeral for the price of Ј1,600 something - the cost when the plan was taken out, years ago.
    That has persuaded me to organise something for myself. I was to save my children from the aggravation at a time when, as I've now discovered, you least feel like doing anything.
  • My 85yr old father died recently while staying with my sister quite a distance from his home. He had a prepaid plan which he had taken out about 20 years ago. I won't mention the company but they do have national coverage. My sister contacted them and they provided a choice of 3 Funeral Directors. The one she picked did a marvellous job. Extras came to under Ј200, mainly preparation and the facility for the family to view at the Chapel of Rest. Funds can certainly be released from bank accounts, NS&I etc. for funeral expenses but it still takes time and they want to see a lot of documentation such as death certificate, will, invoice etc. The joint account is a good idea, but not feasible for everyone. I can't think of any significant drawback, really, and I'll probably take one out myself before much longer.
  • I don't see any advantage in these plans for actually organising the detailed conduct of the funeral. It comes down to whether a surviving partner or other relative has a problem with suddenly coming up with say about Ј2000-2500. We were fortunate in not having this problem when my mother died in May and we organised a beautiful service with a local undertaker. She had no funeral plan although it was always an option with her small Sun Life policy.
  • I phoned after getting a flyer about one of these schemes (think it was from AgeConcern, now AgeUK).
    From what was said, I gathered there was an assumption that it would be cremation.
    I realise that cremation is fast becoming the norm - approx 80% of funerals, according to a friend who works as a funeral director. But it isn't what we want, so I said 'thanks but no thanks'.
  • Funeral Bonds are available for burials.
    One example from The Co-op
    https://www.co-operative.coop/funeral...-Burial-Plans/
    There is also a more bespoke service if one of the set plans doesn't suit.
    Other providers may not be as flexible but certainly your local co-operative society should be able to offer extensive information. I couldn't get a huge amount of information from the Age UK site about theirs - you may be right. The co-operative Group's website has very thorough information, or you can request a detailed information pack.
  • I have opened a savings account called my funeral money
    I put Ј100 in to it every month,I am only 56 but because
    of my condition I could pop my clogs at anytime.
    I have told my OH that I want the cheapest funeral money can buy
  • Correct me if I'm wrong but isn't there a possibility that if you live a long time you could end up paying far more into a plan than the actual costs of the funeral?
  • Hi,
    Quote:
  • Hi,
    Quote:
  • There are so many reasons not to pour money down the drain for something like this.
    There is no 'hassle' or worry for relatives, the bank will free up your funds in advance of probate in order to pay for the funeral. And as regards producing death cert, will etc, they're going to have to do that anyway.
    If you think your estate will leave no money when you have died (ie no cash and you don't own a house), then why on earth stretch yourself to pay for a funeral now? If your executor doesn't have enough funds to pay for your funeral, he can get a funeral payment from the state.
    And it certainly won't save money overall. The only reason people operate these schemes is - guess what? - to make money!
    You are much better off enjoying your money, and investing it if it's spare, than worrying about what's going to happen after you're gone.
  • This is one of those questions that isn't easy to answer as it depends on the circumstances.
    I am encouraging my brother to do one of these plans or some insurance as he has no savings or anything to cover his funeral.
    He is my younger brother (both in our early 50's) and it's very possible because of health issues he may go earlier.
    Whilst I love my brother, I don't see why I should pay for his funeral. I wouldn't expect anyone to pay for mine and have made provision for this, although not thru any plans.
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