Many people now choose to arrange and pay for their funeral in advance. They’re able to do this because of something called funeral plans. There are many benefits to having funeral pre-arrangement plans for traditional or Asian funerals in place. However, there are also some drawbacks that are important to consider.
What is a Prepaid Funeral Plan?
A prepaid funeral plan is a way of paying in advance for your own funeral or the funeral of a loved one. It is a contractual agreement with a funeral plan provider, preferably one that’s registered with the FPA (Funeral Planning Authority). The funeral plan provider helps in arranging the funeral when the time comes. In addition to that, they also ensure the items covered by the plan are paid for.
A prepaid funeral plan gives you the opportunity to agree on the type of funeral you wish to have and cover the costs in advance. That way, your loved ones don’t need to stress about finding the money to pay funeral expenses at the same time they’re dealing with the emotional burden of a loved one’s death.
Other Reasons People Choose a Prepaid Funeral Plan
There are other reasons why people choose a prepaid funeral plan.
- You can shop around and find the best funeral provider.
- You get to choose how much is spent on various elements of the funeral.
- You’re avoiding the risk of future inflation increasing the cost of your funeral.
- Provides peace of mind that everything is taken care of.
- Getting your affairs in order in advance means you can be certain your last wishes will be carried out without any disputes or hitches.
Pros of Funeral Plans
1. Peace of mind
When a loved one dies it can be very stressful for those left behind. Knowing that some of the planning and financial burden is taken care of can reduce the distress.
When an individual chooses a pre-paid funeral plan, they can rest assured their family won’t have to deal with all the stress and logistical challenges of organising a funeral and finding the funds to pay for it.
2. Prepaid and preplanned
Another important benefit is that you’re making sure the funds are in place to pay for the send-off you want. You get to make the arrangements and choose specific details that might otherwise be missed. There will be less of a chance of family members falling out over the details, and you can be certain your funeral will go ahead as you planned.
3. Avoid rising costs of funerals
Much like many things in the world today, the cost of funerals continues to rise. By choosing a pre-paid funeral plan you’re avoiding the rising costs and fixing your funds in place to pay for the funeral you want at the current price of the plan.
4. Tailored to suit your budget
Most pre-paid funeral plans can be tailored to suit your budget and many have flexible payment plans. This is a key benefit because it means the plan can be designed to suit your requirements and financial position.
5. Funeral plan regulation
Funeral plans are regulated by the Funeral Planning Authority. This ensures your funeral plan provider has undergone the scrutiny it needs to be trusted with such an important responsibility. If you’re buying a pre-paid funeral plan, only use a provider that’s registered with the FPA.
Cons of Funeral Plans
1. There is a cost
Pre-paid funeral plans aren’t free. You need to find the funds in advance of your death. The funds can be either a lump sum or regular payments, but either way can be a burden for some.
2. Not all costs are covered
Not all funeral costs are covered by a funeral plan. Most don’t include every aspect of a funeral such as the church service or wake.
While it’s a cost-effective option, relatives may still need to pay something towards the funeral for any items not covered by the plan.
For these reasons, it’s crucial that you check what is and what isn’t covered and communicate this to those who may be arranging matters after your death.
3. Moving house may be an issue
If you’re moving to a different part of the country, you should check that the plan you’re buying isn’t affected by this. Different plans have different approaches.
In addition, if you’re planning to go overseas to live, speak with your provider before making plans as some will no longer cover you if you move abroad.
4. Not suitable for someone close to dying
A massive downside of funeral plans is that they’re not suitable for someone who could die imminently. If you believe your death is imminent, ensure that any prepaid plan provides genuine value over the alternative of paying for the funeral when the time comes.
5. Funds are only accessible upon death
This might seem an obvious downside, but it’s important to remember that the funds are tied up and you can’t access them.
Final Thoughts
With a prepaid funeral plan, you can spread the cost of your funeral and ensure the majority of the fees are paid in advance. You’ll be protecting your loved ones from the financial burden and specifying what you want for your funeral. With an FPA-regulated provider, you can be sure they are subject to independent scrutiny on a regular basis.
