Monthly Payment Funeral Plans – what is available?
Most funeral plans allow monthly payments to be spread over 12 months, some over 24 months and some even longer – with no interest! Not that you will see interest mentioned these days, it will be called an “admin fee.”
But you must pay off in full within the interest-free period or the “admin fee” will be backdated but if it turns out that you can’t afford a full plan just now, there are alternatives.
As you will see, some monthly plans can be paid off over as long as 40 years – though you have to be under 50 to be allowed that long! Always bear in mind that funeral costs seem to continue to rise far faster than normal inflation – or savings!
You can always set up a partial plan – everything helps!
Even if you can’t afford to pay the full costs of a monthly funeral plan, you can at least relieve those left behind of a part of the cost of paying for your funeral with a plan which just covers the funeral directors fees and not the third party costs such as crematorium, minister, interment (digging the grave for burial). The cost of a burial plot is not in a funeral plan as they vary from a few hundred pounds to well over ten thousand pounds.
Avoid Over 50s Insurance Plans.
The temptation is to go for one of the Over 50s insurance plans where every penny can be lost if a few instalments are missed at any time. We accept that they have a place in the market, but we doubt if many ever pay out enough to pay for a funeral, assuming they are not cancelled accidentally before then.
In terms of cost per month, depending on your age, costs can be from £14 to £20 a month for a very basic plan. One plan is £6.25 a month for a 50-year-old – but it is insurance based and you have to pay every month until you are 90 (or die before then!) But at least it guarantees a funeral, even though very basic.
But I have a Deposit
Some companies insist on a minimum deposit, but the bigger the deposit, the lower the monthly contribution. With current interest rates (Feb 2019) you won’t be earning much interest on savings accounts, and funeral costs are rising far more rapidly, so a funeral plan is a better “investment” for most people.
How low can monthly premiums be?
This depends on which plan is the best fit for you (remember, we are independent, so look for the best deal for you) and your age. Most monthly plans are over a maximum of 10 years, with one or two going to 15 years or even longer. But most insist that the plan is paid in full by the age of 85.
Contact us on 0800 0588 240 or use the enquiry form to the right – we promised no hard sell, just honest, independent advice.