If you’re lucky enough to have some savings in the bank, you may have thought about just leaving them there to cover things like funeral expenses when you die and to leave money for loved ones.
Since funerals aren’t an everyday occurrence in people’s lives, it’s easy to lose touch when it comes to how much they actually cost. Even if you’re unfortunate enough to have been to a lot of funerals lately, unless you’ve been involved in organising them, you’re unlikely to have any idea of what a funeral costs.
By arranging a pre paid funeral, you can get many benefits, as described below.
• Pay a small monthly amount
If you’re keen to keep your savings intact as a lump sum when you die for the benefit of your family and friends, one of the options for a pre paid funeral plan is to pay a small monthly amount until you pass away. As long as you have some form of income and are able to afford this every month, it means you can secure the funeral you want at today’s prices.
In other words, you don’t need to worry about inflation and how much of your savings may have to be spent on your funeral costs when you die.
With most funeral plans, you can also arrange to pay over a set number of months, or if you’re financial circumstances allow, you could choose to pay the whole amount up front.
• Earn interest on your savings
Paying a manageable monthly amount not only safeguards you against future rises in funeral costs, it also means you can potentially earn more money on your savings if you keep these intact.
• Leave your savings for emergencies or investments
Having a pre paid funeral plan in place undoubtedly provides peace of mind. However, there are many things in life which can’t be predicted. Keeping savings aside for emergencies may be a good idea, or alternatively, you could invest the money in a variety of different ways in order to try to make a greater return.
Since everyone’s financial circumstances are unique, there’s no right or wrong thing to do when it comes to setting up a pre paid funeral plan. If your savings would just cover the cost in no more, then it may be wise to pay in instalments rather than up front.
If you have a significant sum in the bank, then you may decide the peace of mind that comes with paying up front is worth it.
(Information kindly supplied for Uk Money Market by www.co-operativefuneralcare.co.uk, one of the UK’s leading providers for pre paid funeral plans.)