The Funeral Planning Authority has announced that prepaid funeral plan sales have risen to a total of 135,160 in the last year. This is a big rise on the sales of 120,731 recorded in 2012. We suspect that in subsequent years the figures will be much higher as prepaying for your own funeral becomes a natural event to protect those left behind.
Funeral Plans becoming the norm.
In some countries, most funerals are organised via prepaid funeral plans, but the UK has been a bit slow off the mark.
There are now in excess of 860,000 prepaid funeral plans in existence a figure which is growing rapidly as more and more people take out funeral plans as they hit their 50s. Last year just over 57,000 funerals where arranges for folk who had taken the wise precaution of taking out a prepayment funeral plan. These figures don’t cover funeral plan firms which are not regulated by the Funeral Planning Authority, and there are major sales teams who are outside and thus not included in the figures.
As independent Funeral Plan advisers, we know that the plans differ wildly, and the best way to get a plan which is the most suitable for you is not to talk to lots of funeral plan salespeople and try to read between the lines, it is to contact us. We are INDEPENDENT and we are on your side.
Over 50’s “Funeral Plans” Sales boom, sadly!
Insurance linked “funeral plans” continue to vastly outsell proper funeral plans which actually do prepay funerals rather than just provide a lump sum of cash which has been eaten away by inflation.
Why? Because people don’t understand the market. Most over 50’s plans are insurance contract pure and simple, and they can be sold without advice as they don’t have a cash value. In most cases, you could miss a payment or two as you ill, and the cover (and all the money paid in) has gone.
To quote Martin Lewis in The Telegraph:
“He’s a lovely man, that Parky – just don’t listen to him when it comes to insurance. Michael Parkinson’s caring voice-over makes Axa Sun Life’s Over-50s Plan seem simple, yet for many it’s a seriously bad bet. You wouldn’t buy a lottery ticket if it cost more than the jackpot, but the two million people with these types of policies risk doing just that.“
You may have gathered we think these plans should be very much a last resort, and they are certainly no substitute for a proper prepaid funeral plan, which is designed to prepay all or most of the funeral costs. But do click on the link above if you are still tempted, and read more about Over 50’s plans.