MISS MONEYSAVER: The funeral plans that WON’T rip you off

When the sun is shining, the flowers are in full bloom and the birds are singing, it feels wrong to discuss the cost of dying.

But after reading a recent report on the rising price of even the most basic funeral, I think it’s a conversation families should be having.

According to SunLife’s findings, a traditional farewell will cost you nearly £9,200 when you factor in the funeral (an average of £4,794 for a burial and £3,673 for a cremation), plus a memorial, vigil, flowers, catering and management fees. the estate.

Perhaps, like David Bowie, you feel that a simple no-service cremation would suffice.

This would reduce costs to £995 at companies such as Distinct Cremations and Aura Cremations or £1,295 at Pure Cremations. Some offer installment plans, from just over £10 a month.

Unsurprisingly, given the strain on family budgets, a growing number are opting for something as simple as that, leaving it to family and friends to follow the cremation with a ‘celebration of life’ at their home or local venue.

Maria Bailey, founder of GriefSpecialists.org says, “If your loved one has chosen direct cremation and you’re not sure how to celebrate their life, think about how you can still come together to share memories.

“If the ritual is removed from a funeral, it can feel like you’ve been robbed. Think about how you can create your own alternative that is personal to you and your family.”

If you’re not worried about a funeral, tell your family, especially if your estate doesn’t have much money to pay for it.

Research last year by Farewill found that more than four in 10 people who contributed to a family member’s or friend’s funeral in the past two years had gone into debt to do so. So if that’s something you’d rather avoid, be honest about your wishes.

If you still want all the frills, you can save your loved ones a lot of money by paying now.

People have traditionally taken out life insurance to cover funeral costs.

But I’m not a big fan of this one. Why? Because they often end up costing more than the funeral would have cost, especially if you catch it early and keep paying year after year.

Funeral plans often cover the cost of a coffin and hearse, but may not include the price of a headstone or cemetery

With these life insurance policies you are usually only covered after a year and if you stop paying the premium, the insurance will stop and you will not get anything back.

Because the cash sum is fixed, inflation will reduce purchasing power over time, and you’ll pay more the longer you live.

For example, according to moneysavingexpert.com, an average 65-year-old woman who pays £7 a month for SunLife’s Over-50s plan will get a fixed payment of £1,193 after 14 years, even though she is paid in £2,100.

Put the same amount in a tax-exempt ISA and you’ll reach the payout amount two years early.

British Seniors also have what is essentially a life insurance policy to cover the costs of your funeral.

Cover starts from £7.65 a month, but for enough to cover even the most basic funeral you’ll need the Silver plan at a minimum (£4,000 payout). The installments for this are € 14.30 per month.

It is cheaper to have a funeral plan with an insurance company such as Legal & General where you can often fix the price and get a better deal.

These can be paid in a lump sum, or you can set up monthly installments that, unlike insurance premiums, end once funeral expenses are paid.

These plans usually cover most items, such as a coffin and a hearse. But be aware of what’s not included, such as the price of a cemetery, which can exceed £3,000, or a headstone, which can cost more than £1,000.

A cemetery can cost over £3,000 while a headstone can cost over £1,000

A funeral plan can be taken out by anyone over the age of 18, although some providers require you to be at least 50.

Since last year, these are covered by the Financial Services Compensation Scheme, meaning you can be FSCS protected if the provider goes out of business on or after July 29, 2022.

The Co-op offers a range of these plans to suit all budgets, from Simple, £2,975, which covers a basic funeral, to Gold, which costs £4,210 and includes extras such as porters and a hearse. There’s currently £250 off all plans, although none include the cost of a cemetery.

You can pay in full, spread the costs over six or 12 months at no extra cost or opt for monthly installments (with extra costs) over two to 25 years. Co-op members get an additional discount (£75 off the Simple, £125 off the other three packs).

Golden Charter also has options to pay in installments over ten or fifteen years.

Dignity offers prepaid funeral plans that guarantee that your funeral costs are fully covered (not including the plot) and you create your own, which can be paid for at no extra cost for up to five years. Prices start at £2,990.