Costly Funeral Plan Exclusions – what is missing from Yours?
What funeral plans don’t cover
Funeral plan exclusions are something we keep a close eye on when advising clients. Leaving out important expenses is the easiest possible marketing gimmick for making your prepaid funeral plan seem very cheap. So watch out for those super low-cost funeral plans!
Funeral Plan exclusions area all very well if you and your family are aware of them. But it can be an awful shock for the family suddenly to be presented with a large bill for immediate payment just days after a death. We have seen “funeral plans” which exclude the cost of cremation or burial, so they are cheap as chips but not really fit for purpose. Unless purchased with the clear understanding that they only cover part of the cost of the funeral.
No Funeral Plan is Perfect – but there will be one which is best for you.
Funeral plans are not perfect, they are just a great way of minimising the financial issues immediately following a death. Many providers will allow you to add in extra cash to allow for minor shortfalls or unforeseen extras. But even the most basic of funeral plans is a great help, so don’t be put off if you can’t afford the send off you would like, you can often add more later. If your family wish to pay for extras at the time, they can do that too.
Over 50s Insurance – Funeral Plan Exclusions include the funeral!
Of course, the biggest offenders are the Over 50s Life Insurance Plans which just pay out a fixed sum which becomes less and less adequate every year. Some of them have adapted their marketing to make them look better value, but marketing gimmicks don’t convert an unsuitable funeral plan into a suitable one. That is why you need our Independent Advice.
Common Funeral Plan Exclusions.
Most funeral plans exclude some costs. Other costs are covered provided they rise no faster than the consumer prices index – so there could be a shortfall. If these issues are relatively minor, the extra cost might be tens of pounds or even a few hundred. But the major costs should be covered, which is what it is about.
Funeral Plan Exclusions – Burial Plots.
Funeral plans do not generally include the cost of burial plots for the simple reason that they may not even be available. If you want to be buried, you need to have burial plot booked and paid for in advance. Your funeral plan can include an allowance to buy a plot but no one can tell whether or not it will be enough if the cost of burial plots continues to rise faster than normal inflation.
Normal plans will not include the cost of flowers, printing, church services, organists, choir, catering, grave digging and burial plots.
When we work with you to design and find the right plan, we can build in allowances for these and other things if you wish. If you are desperate to be converted into a diamond, we can even build in an allowance for that too. But it is not cheap!
Most plans include an inflation linked allowance for things like doctors fees and crematorium fees
There are a couple of firms who guarantee burial costs – but they both exclude the cost of the most expensive item, the burial plot. So do be careful if you chose not to use our free service.
The full cost of cremation is outside the control of a funeral plan company – unless it owns the crematorium. And that brings its’ own problems – for the guarantee to be effective, you would need to use one of their crematoriums – and that could be many miles away. So there are a few companies which will to guarantee to cover that cost in full. The downside is that there will be less flexibility if you move, or find their crematorium inconvenient. Assuming the cost of cremation is included (as it is in proper plans) then other providers will include an average allowance for crematorium costs which they will increase by consumer price inflation.