Community  •   Published 22/11/2016  •  Updated 12/01/2024  •  By Emma Breedon

The Importance of Funeral Planning

A young girl talking with an old lady about funeral planning

It’s a topic most people would rather not talk about. But we should not underestimate the financial and emotional benefits of funeral planning.

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 to all family members. Pemberley Wills and Estate Planning’s Managing Director, Nathan Broadhead, shares his unique insight into this delicate topic.

Funeral Planning Reduce Anxiety for Everyone

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As a will drafter, I often receive calls from executors and individuals who have lost a loved one and want to know what funeral arrangements have been made. For many, it is a real relief to know that these things have already been taken care of, 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 Provisions Safe?

Yes. Regardless of which company you choose for your funeral arrangements, they will hold your funds securely in a separate trust fund.

I have savings or other assets that I can use when the time comes. Why should I pay for a funeral in advance?

  • Pre-paying for a funeral means you are paying today’s prices. Normally the cost of funerals goes up every year. However, this time the average cost of a simple funeral has gone down. At £3,953, they have fallen by 2.5% since 2021. (Sun Life Report on the cost of Dying 2023)
  • Savings put aside are not growing at the same rate as funeral costs. If you had put £1,230 into a building society account 20 years ago, would it have grown by 225%? Not likely.
  • If you have already put the money for your funeral into a savings account, you could say that you have already ‘spent’ the money as you are unlikely to use it for anything else.
  • Your family does not have to come up with the money to pay for your funeral – or a gap in the actual cost – when the time comes.

I already have insurance. Why do I have to pay for a funeral in advance?

Insurance benefits are usually fixed at the time of the policy purchase and do not increase over time, which means the full cost of a funeral may not be covered. In addition, insurance policies require you to pay monthly premiums for the rest of your life. Prepaid funeral plans do not require such premiums, and the cost can be frozen at today’s level, so your family is not left with a large deficit.

I already have insurance. Why do I have to pay for a funeral in advance?

Pemberley works with a number of funeral plan providers to ensure you purchase the right plan at the right price. Plans start at £1,190. You do not have to pay a fee to Pemberley to arrange a funeral plan for you.

Do I have to pay a large sum all at once?

No. Payments can be made monthly, and the cost can be spread over 10 years.

Do I have to undergo a medical examination, disclose personal data, or fill out forms?

No. You are guaranteed to be accepted, and the paperwork will be taken care of for you.

What are the benefits of prepaying for funeral care if you need residential care in the future?

Let us take Mrs. Smith and Mrs. Jones as an illustration.

Mrs. Smith becomes in need of care, and her assets are used to pay for her care until she reaches her last money of £23,250. From that point on, the local authority does not accept any more money from her. Mrs. Smith passes away, and her funeral costs £3,250, leaving her daughter with £20,000.

Mrs. Jones was placed in residential care at the same time, but had already paid for her funeral. Her assets are used to pay for her care until she reaches her final balance of £23,250. From that point on, the local authority does not accept any more money from her. Mrs. Jones passes away, and since her funeral has already been paid for, her daughter receives £23,250.

Pemberley Wills & Estate Planning Ltd. offers a free consultation to ensure you get all the information you need to make the right decision. If you feel you would like to discuss this further, please contact Nathan at [email protected] and quote Telecare24.

Thank you for taking time to read this article. We hope you found it useful. For more information, please visit our blogs.

About The Author

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Emma Breedon

Emma joined Telecare24 whilst the company was in its infancy and has been vital in shaping the service into what it is today. As Customer Care Manager, Emma epitomizes the company's core values and pr... Read More

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