A pre-paid funeral plan can bring you peace of mind.
The death of a loved one is an extremely upsetting and difficult time. Financial distress is something that many families simply don’t plan to suffer with or want, at a time that is often very emotional and stressful.
This is one of the main advantages for people that take out pre-paid funeral plans. They want to ensure that their family does not have the hassle and stresses of organising or raising funds whilst they are grieving.
The average cost of a funeral in 2020, in the UK, was £3,837, an increase of 1.4% on 2019, and funeral poverty is at £82.7m.
Allows you to choose the send-off you want.
Pre-paid funeral plans ensure you’ll have the funds (either partially or fully) to have the send-off of your choice.
Some providers offer a guarantee to cover the rising cost of funeral plans, effectively ‘fixing’ your funds to enable you to pay for the funeral you want at today’s prices.
It’s unfortunate and difficult for relatives when they cannot afford to pay for the funeral their loved one would have wished.
It can help to reduce inheritance tax.
Lastly, from a financial perspective, pre-paid funeral plans could reduce inheritance tax as the money has been invested prior to death.
Without a plan in place relatives would need to use funds from your estate, which may be subject to tax.