Monthly Prepaid Funeral Plans.
Not everyone can afford to pay for a funeral plan in one go, so most plans offer some sort of monthly payment plan. You can, of course, go for the Over 50s style insurance which we dislike intensely. But proper prepaid funeral can also be paid for on a monthly basis. With most prepaid funeral plans, monthly contributions only go on for a maximum of 10 years – then the plan is fully paid. Even if you miss instalments you rarely lose everything unless it is very early on. Contrast that with monthly premiums for Over 50s Plans which typically have to be paid until you are 85 or 90 and where you do lose every penny if you miss payments.
Ideally, you should be able to put down some money as a deposit, to reduce the monthly cost, but not all providers insist on one. So what are the normal offers available?
Do I need a deposit for monthly payment funeral plans?
Not necessarily, but if you have one, it gives us a wider range of plans to make recommendations from. Where a deposit is required, the typical amount is £250. Always bear in mind that you must keep up the payments, as you will lose out if you don’t. But if you start an instalment plan, then hot financial problems, always talk to the company concerned and try to work something out rather than just getting an automatic penalty. One company does not return any payments to the client at all!
Low cost monthly funeral plans.
Most plans can be paid in monthly instalments.
- The cheapest type is the Direct Cremation Plan. They are not really ideal, but some of them will allow you to upgrade them to a more normal plan allowing for a service later on. That option allows for dramatically lower monthly payments. But we need to make sure that you have a plan which can be upgraded. In some cases upgrades can be done at almost the last minute.
- The next lowest in monthly cost is the group of plans which pay only the funeral directors fees. The crematorium or burial costs have to be found elsewhere, as do ministers and doctors fees. But again, the plans can be upgraded later. These can be used as a way of topping up one of the Over 50s life plans as they lose out to inflation – if you already have one.
- Moving up slightly are the new breed of cut down plans. They are typically only perhaps £5 a month cheaper, but they seriously restrict where and when the funeral is held. But if that fiver is more than you can stretch too, many can be topped up to the normal full plans below later on.
- Then we get to standard funeral plans which cover the basics. Typically, the funeral director is paid in full. A substantial allowance is put aside (and inflation linked) to cover crematorium fees, ministers or celebrants fees and the doctors fees. You can allow for limousines for the family and all sorts of fancy things if you wish. But we believe that the main thing is to cover the basics as far as you are able, and keep the monthly payments at a reasonable level!
We’re happy to chat through the options, without obligation, so why not give us a call!