How to avoid funeral debt

The Independent says that three times as many people are using crowdfunding to pay for funerals compared with the previous year.  Asking friends and strangers to pay for your funeral costs is going to be pretty unpleasant for anyone.  In this particular case, the mother had died at the age of 49, so funeral planning had only just become something of significant, as the link to the story further down will tell you.

Can you plan ahead for the cost of a funeral?

There will be many families who will have severe difficulty finding the finances to put aside to pay for a funeral, though if the family are close-knit enough to work together, we do have a solution whereby money can be pooled to buy a plan to be used by the first member to go, and at least restrict the cost to today’s prices. Later on, a second plan can be added and replaced in time.

Is life insurance suitable for avoiding funeral debt?

That is a tricky one: the older you get, the more expensive insurance becomes.  And if your finances hit a rocky patch at any age, it is common for insurance premiums to be missed, and for the plan to be cancelled with no money back. For more on these, go here.

Is saving into a bank or building society account sensible?

NO – not when the interest you earn on a savings account is tiny compared with the increasing cost of funerals: the cost is rising much faster than general inflation.  And such funds are too easily spent on something else!

What is Crowdfunding for a funeral?

These days it is possible to put an appeal on (for example) GoFundeMe and hope that folk will chip in to help.  In some communities, if you are well known and liked, that might work.  But it would need wide publicity, and many undertakers insist that all or part of their bill is paid before the funeral can go ahead.  Worse, they may well charge extra for storing the body for longer than normal.

Whatever happens, it is extra worry and upset at a time when things need to be as simple, straightforward and preplanned as possible – and that really only leaves one solution – contact us on 0800 0588 240 for advice on choosing a prepaid funeral plan and how to get a good value plan which suits your wishes (and may well avoid lots of arguments, as you have made the decisions!)

To read the Independent article, go here.