10 Tips for choosing the most appropriate prepaid funeral plan

10 Tips for choosing the most appropriate prepaid funeral plan

Choosing the most suitable prepaid funeral plan is extremely important, especially when you take into account the cost and impact it will have on your family.

The following top 10 tips have been designed to help guide you through the process, so you can be confident in your final decision.

Tip 1 - Don’t put it off

• When you buy a prepaid funeral plan you are paying for your services at today’s prices, effectively freezing costs and therefore avoiding the impact of inflation

• Funeral plan providers increase their prices on an annually to reflect rising costs, so buy now and save money.

Tip 2 - Consider your budget

• If you have funds available, the cheapest way to buy a funeral plan is to pay in one go or over 12 monthly installments

• Most providers offer installments over 1, 3 and 5 year periods, too, with cover provided once payments are complete

• You are guaranteed to be accepted regardless of the state of your health as long as you are aged between 50 and 80 and live in the UK.

Tip 3 – Choose a level of service that suits your requirements

• Most plan providers offer 3 levels of service; a simple, standard and superior plan

• They all guarantee to cover the cost of the funeral director’s services and pay an allowance for third party costs, otherwise known as disbursements which includes cremation or burial fees and the minister’s and doctor’s charges.

Tip 4 - Be clear on any additional costs

• Disbursement fees are beyond the funeral directors control and vary from region to region, currently averaging £965*

• Most plan providers offer an allowance for disbursements of between £1,000 to £1,100 which increases each year in line with RPI

• Some companies guarantee these services are fully covered, however you may pay more for the plan in the first place so do take this into account.

* Money Advice Service December 2014

Tip 5 - Explore the options if looking for joint funeral plans

If you are a couple looking for prepaid funeral plans there are two options: • Buy two plans which will ultimately save you money in the long run as you

are paying today’s prices

• Buy a joint funeral plan.

• This is a single funeral plan that is written in both names and will cover the funeral services of the first person to die.

REMEMBER, funds would still be needed for the second death.

Tip 6 - Check your plan provider is a member of the Funeral Planning Authority

• The Funeral Planning Authority is the industry’s professional regulatory body as recognised by the Government’s Money Advice Service

• For your protection, members must follow its code of conduct which safeguards your money and ensures the service you receive is in line with their standards.

Tip 7 - Get the right Funeral Director

• Most funeral plan providers give you the option to nominate a local independent funeral director who they will endeavour to place the plan with, or they will select one on your behalf

• Either way, you should know who your chosen funeral director is within 28 days.

Tip 8 - Think about the details

• The majority of prepaid funeral plans give you the opportunity to include specific requirements you want included on an ‘expression on wish’ form

• These could include hymns, music, a wake or party

• Or, if you prefer, just pay for your services and let your family agree the details when the time comes.

Tip 9 - Compare, compare, compare

• To ensure you get a funeral plan that suits your requirements and your budget, shop around and compare; something families are unlikely to do when you die

• Over50choices can help you review and compare the UK’s leading funeral plans plus gives you access to free independent advice.

Tip 10 - Let your family know

• Once you have your funeral plan in place, let your family know are clear about who to contact when the time comes.

What next?

• You can compare prepaid funeral plans, review the features and benefits, and get free quotes in minutes at Over50choices

• Or if you prefer to talk through your options, please call 0800 133 7656 for free advice.

• Visit http://www.over50choices.co.uk/funeral-planning/funeral-plans