Telecare24 has teamed up with Pemberley Wills and Estate Planning in this blog to highlight the importance of Funeral planning and the peace of mind it can bring everyone in the family. The Managing Director of Pemberley Wills and Estate planning, Nathan Broadhead, gives his unique insight into this delicate subject.
Funeral Plans Reduce Anxiety for Everyone
As a Will writer, I often receive calls from executors and individuals who have lost loved ones, wanting to know what arrangements are in place for the funeral. Many find it a real relief to know that these things have been taken care of beforehand, and a great deal of stress can be removed from those dealing with your affairs.
This is an area that is becoming increasingly relevant and, considering some of the cases I have dealt with over the last few years, something that I feel very strongly about.
The following points will help answer the most popular questions in this area and will help explain why a pre-paid funeral plan should be viewed as a wise investment rather than a ‘spend’.
Is the money I spend on funeral planning safe?
Yes. Whichever company you choose for your funeral plan, your funds will be securely held in a separate trust fund.
Why should I pay in advance for a funeral when I have savings or other assets which can be used when the time comes?
- Pre-paying for a funeral means you are paying in today’s prices. Over the last 20 years the average cost of a funeral has increased by 225%! (Sun Life Cost of Dying Report)
- Savings put to one side will not grow at the same pace as the increase in funeral costs. If you invested £1,230 in a building society account 20 years ago, would it have grown by 225%? Unlikely!
- If you have already ‘earmarked’ the funds to pay for your funeral by setting aside funds in a savings account, you could say that you have already ‘spent’ the money, since you are not likely to use those funds for anything else.
- Your family will not have to find the money to pay for your funeral – or a shortfall in the actual cost – when the time comes.
I already have insurance. Why do I need to pre-pay for a funeral?
Insurance policy benefits are normally chosen at the time you take out the policy and don’t increase over time, which means the full cost of a funeral may not be met. Also, insurance policies require you to pay monthly premiums for the rest of your life. Pre-paid funeral plans don’t require such premiums and can freeze the cost at today’s prices which won’t leave your family with a large shortfall.
How much does funeral planning cost?
Pemberley works with a number of funeral plan providers to make sure you purchase the right plan for the right price. Plans start from £2,075. You do not have to pay a fee to Pemberley to arrange a funeral plan on your behalf.
Do I have to part with a large sum of money in one go?
No. Payments can be made monthly, spreading the cost up to 10 years. Monthly payments could be as low as £21.29.
Do I need to have a medical, disclose personal details, or fill in forms?
No. You are guaranteed to be accepted and the paperwork will be taken care of for you.
What are the benefits of pre-paying for funeral planning if you require residential care in the future?
Let’s use Mrs Smith and Mrs Jones to illustrate.
Mrs Smith goes into care and her assets are used to pay for her care until she gets down to her last £23,250. At this point the local authority stops taking any more of her money. Mrs Smith passes away and her funeral costs £3,250 which leaves her daughter with £20,000.
Mrs Jones went into care at the same time, but she had already paid for her funeral. Mrs Jones’ assets are used to pay for her care until she gets down to her last £23,250. At this point the local authority stops taking any more of her money. Mrs Jones passes away and because her funeral has already been paid for, her daughter receives £23,250.
Pemberley Wills & Estate Planning Ltd offer a free consultation to make sure you have all of the information you require to make the right decision. If you feel that this is something you would like to discuss further, please contact Nathan on [email protected] and quote Telecare24.