Cost of Funeral Plans in 2018

Cost of Funeral Plans 2018.

The cost of funeral plans varies widely in the UK.  But so does what you get for your money! Some plans “save” on upfront costs by missing out essentials like THE FUNERAL.  Yes, you read it correctly, some funeral plans don’t even make a contribution towards the actual funeral.

At the time of writing, February 2018,  the average funeral plan costs around £3,300, pretty much the same as the average funeral.  But that disguises very wide variations.  Bear in mind that no funeral plan includes the cost of a burial plot itself.   They are set up primarily to cover the cost of a cremation. Alternatively, the allowance for the crematorium fees can be switched towards the cost of digging and refilling a grave which you already own.  Otherwise one will have to be purchased at the time.  The cost and availability of graves varies tremendously and there is no guarantee one will be available at all in some areas.

Do bear in mind that existing graves do not necessarily allow further burials in the same plot, and sometimes the lease on the grave will have run out. Burial plots are not normally sold freehold, but on a lease for a specific number of years.  That lease MAY include the right to additional burials in the same plot during its’ term – more often than not is does not, so please check.

As we were saying above, you can cut the cost of funeral plans dramatically by leaving out some of the basics.  That is fine as long as both you and your family understand that is what you are doing.  Sadly that is often not the case and people buy plans which are missing vital parts or which don’t allow for a service because they don’t understand the small print.  That is where our Research Team comes in.

Ways of reducing the cost of funeral plans.

Some examples:

  1. Plans which pay the funeral directors costs only, not the doctors fees, cost of cremation or the cost of the person conducting the funeral.  That makes a good start on planning, but leaves a good proportion of the cost to be found at the time.  At current rates, about a third. Some of the better plans will let you add more later one, but at the cost at the time, which will be higher.
  2. Either / Or Plans.  Here, a couple buy a single plan to start with.  That plan can be used by whichever of them dies first.  That is often the most financially difficult time.
  3. Buy Over 50s Life InsuranceTo us, this is very much a last resort as these are often appalling contracts with no value if you miss payments.
  4. Direct Cremation Plans can be bought for as little as £1,495. But they are very basic with `all the heartache and anger they can cause if everyone fails to understand there is no friend or family involvement once the deceased is collected, which is usually within hours.  They have their place, but very much with care.
  5. Buying on instalments. Most will let you pay over up to 10 years, fixing the price as at the date you first buy.  Most will offer 12 months interest-free instalments, some even 36 months.  Some will allow as much as 30 years to pay, depending on your age. But longer term means paying extra, but it should still save lots of money in due course.
  6. Our favourite for couples.  Buy two plans, both on an either / or basis, one for cash, or as big a deposit as possible, so it is paid off quickly. And add another plan on long-term instalments, to keep it affordable.

Whatever your needs and wishes are, we will chat things through with you and use our independent expertise to make a suitable recommendation.  We’ll post it to you to consider, along with some alternative quotes, check to see if you have any questions.  Then we’ll leave you to make up your own mind. Call us on 0800 0588 240.

 

 

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