With unregulated funeral directors maximising profits and funeral costs rising steeply year on year, funeral plans offer some hope. By paying for your funeral at today’s market prices, you can beat unregulated inflation. Ensuring your wishes are covered and your family are protected from the financial burden of your funeral, funeral plans offer peace of mind. In this post, we shed light on what you can expect when it comes to paying for your funeral in advance.
Pay Total Up-Front – If you go for a funeral plan, paying the full total up-front is one of the best options. Providing you can afford to pay it all in one go, you won’t have to worry about monthly payments or your family having to make repayments if you die before paying off the full amount.
Pay Over a Year – With some providers, if you can’t afford to pay the total in a lump sum, you can clear the amount in twelve months. Effectively, some providers offer this option to pay your plan interest-free for a year. However, if you die within this period, your family may be required to complete repayments on your funeral plan.
Pay Over a Longer Period of Time – Some providers offer the option of paying for your plan over the course of up to thirty years. However, this comes with several drawbacks. By extending the repayment terms, you will effectively negate the saving made from a funeral plan, as this will end up costing an additional 10% of the value of the plan. Furthermore, if you pass away before completing the repayments, your family may be asked to pay the remained.
To conclude, when considering payment options for a funeral plan, beware of the pitfalls. Paying the total up-front is perhaps the safe option. However, if you fulfil the terms and pay premiums for a certain period, some funeral plan providers will still tender their services, despite you not paying off the full amount.