No one likes to think about dying and most don’t know about the financial difficulties that death can cause your loved ones. It can therefore beneficial for you to understand what costs your loved ones will be dealing with and how you can be prepared so that your final farewell isn’t a financial burden on them.
One of the biggest expenses will be your funeral which currently cost around £3,600. However these costs are rising and in Mintel’s 2014 report they have predicted that funeral costs will be over £12,000 in the next 20 years. This is a huge amount to burden your family with at the time of your death so it’s becoming more important for you to understand the different options you have, including funeral plans and over 50s life insurance.
So what are you paying for in a funeral? Normally the biggest cost will be the Funeral Director’s services which should include storing the body as well as providing the coffin, hearse and staff for the funeral and cost an average of £1,800. There are also fees to cover the actual burial or cremation which can be up to £1,600 as well as additional costs such as a minister or celebrant, flowers and headstones.
With the rising costs in mind the first option we’re going to discuss are Funeral Plans. A Funeral Plan allows you to ease both the emotional and financial burden on your family and loved ones, meaning that they will not need to worry about paying for or planning your funeral at the time of your death, which should also give you peace of mind knowing that there will be one less thing for them to worry about. One benefit of a funeral plan is that they fix the cost of your funeral at today’s prices meaning that you beat the increasing costs of a funeral.
Another option to cover your funeral costs is to take out over 50’s life insurance. With the option to choose how much you pay monthly when you take a policy out, you can choose a policy which is affordable to you. When taking out over 50’s life insurance it is important to understand that it is not guaranteed to cover 100% of your funeral costs.
Whether you think a funeral plan or over 50’s life insurance is right for you, the costs and arrangements for your funeral can be dealt with well in advance meaning that you and your loved ones will have one less thing to worry about around the time of your death.