A prepaid funeral plan is a type of insurance that covers the cost of your funeral when you die. The cost of a funeral these days is getting so expensive, that an affordable plan can allow you to keep the price fixed at today’s prices, rather than paying 2x, 3x or 4x when the day finally comes.
How Funeral Prices Are Getting Out Of Control
The average cost of a funeral in the UK is currently around £3,600 to £4,000 and this is already a very large cost to place on a grieving family.
But the cost of funerals continues to rise as we start to value our loved ones and want to give them dignity and respect as we say goodbye. According to research from funeral insurer Golden Charter, the cost of funerals has increased by 103% over the last 12 years and if it continues, the cost of funerals will rise from around £4,000 in 2017 to over £12,000 by 2036.
How Does a Funeral Plan Help?
As mentioned, a funeral plan or funeral insurance, keeps things locked at today’s prices. So if a funeral costs £4,000 today, it will cost your family the same when you pass away in 20, 30 or 40 years time. It involves paying for a plan, which can be around £2,500 to £3,000 in one lump sum or an average of £25 per month for a period of 12 to 60 months. (Source)
What Does a Funeral Plan Include?
A plan will include the following:
- Funeral Director’s costs
- Cremation fees (depends on plan)
- Minister’s fees (depends on plan)
- Religious service at chapel or church
- Hertz/limousine vehicle