Funeral Plans: Your Questions Answered
It makes sense to plan your funeral in advance. Here are some of
the areas you may be concerned about.
1. What happens if the funeral plan provider goes out of
business?
While this is considered unlikely, monies paid by you for your
funeral plan will be received in accordance with the code of
conduct of the UK's National Association of Pre-paid Funeral
Plans (NAPFP) and will be fully protected. The money for your
funeral is held in a a trust - a separate legal entity - which
is regularly audited by independent actuaries and accountants.
So your funeral would still be carried out according to your
guaranteed funeral plan and the funeral director would be paid
from the trust fund.
2. What if I move home?
Your guarantee is simply relocated to another funeral director
convenient to your new home. If you decide to live abroad, you
may apply for a refund. If you move home, please notify your
funeral plan provider as soon as possible so we can ensure all
records are up to date.
3. What are the advantages of paying for my funeral now? Why not
put the money into a savings account?
Once you have paid for a pre-paid funeral plan, you will never
have to pay any more for the funeral director's costs no matter
how much these costs may rise in the future. No savings account
can provide such a guarantee. In recent years funeral expenses
have increased in excess of inflation. So why not secure your
funeral requirements at today's price and then use the remainder
of your savings just how you want!
4. What happens if the designated funeral director ceases to
trade?
Your funeral plan provider will make the same arrangements with
another local funeral director.
5. Are there any age or health limitations on who can purchase a
funeral plan?
No. And no. Simple as that.
6. What if I want to take out a plan for someone else?
No problem, as long as the plan is suitable and required by that
person.
7. What about insurance based funeral plans?
They have several disadvantages. Principally they don't
guarantee to cover funeral costs or allow you to specify the
arrangements. Even if you are in reasonable health, you may well
end up paying much more in premiums than the insurance company
will ever pay out and the funeral would need to be paid for,
often well before the insurance paid out.
8. What if I die away from home?
Each plan includes collection from within a specified distance.
If you are travelling away from your local area additional costs
may be incurred. If you travel abroad you should obtain travel
insurance to cover all eventualities.
9. Do funeral plans include burial?
Nowadays, most people are cremated. Accordingly the cost of a
burial plot is usually not included. However, should you wish to
be buried your funeral plan provider will be pleased to discuss
this with you, with a view to you purchasing a plot at a
cemetery of your choice. The cost and availability of a plot
varies considerably throughout the country. If you already have
a burial plot please provide the funeral plan provider with the
information.