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Insights on money, career and trading

Funeral Cover

Posted on April 22, 2016 by Daniel at 6:41 pm

Did you know that the average cost of a funeral in the UK is around 3,600? This is a large bill that no one wants to leave their loved ones and it’s also raising with the expected cost of a funeral to be well over 12,000 in the next 20 years. If you don’t want to leave these costs to your family and loved ones then there are some options you can take. These include funeral plans and over 50s life insurance which both allow you to make provisions for your funeral in advance usually with monthly payments.

A funeral plan will allow you to both plan and pay for your funeral in advance. What’s covered in a plan can vary from plan to plan, but most will pay for the professional funeral directors, a coffin, hearse and a burial or cremation. If you go for a more premium plan it will likely include additional cover for other third party costs such as flowers and any costs associated with a wake such as a venue and catering. A funeral plan can also be beneficial as they can lock in your funeral costs at today’s prices meaning that you can be financially better than if you were to just use savings. You should however be aware of any interest which may be added on if you decide to take out a monthly payment plan as this can steepen the overall cost of a plan.

The other popular option is an over 50’s life insurance policy. These work as monthly payment and give a pay out to your next of kin upon your death. Your next of kin can then use the pay out in order to pay for your funeral. An over 50’s policy is ideal for funerals as they give a pay-out similar to the cost of a funeral and are usually fast to pay out once you pass away, meaning the funding is ready in time to pay for your funeral. An over 50’s can also be more flexible than over options with premiums ranging from around 10 to 50 which can also make them much more affordable. And although the lower premiums may not cover your funeral 100% they can at least contribute to the costs which can be a good option if affordability is an issue.

If the cost of funerals worries you at least now you know there are some options which can reduce the burden onto your loved ones.

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Insights on money, career and trading