Funeral plans

Thanks Starlady.

I was hoping the post will make me and others aware of the pros and cons of these plans. I had never thought of doing it and was really surprised when she told me she had done it as she usually discusses things in depth with everyone! As you say if I was going to do it I would pay all the money up front.

It's kind of you to be concerned for your friend and her family, ajanela. But it looks like she already made her decision. I would have preferred a plan where I paid it all up front and that was that. But, obviously, she can't afford to do that. As you suggest, she's probably afraid she'd use the money if she put it into a savings account. You can't really know what's best for her, even as her friend. So it's good, imo, you don't plan to criticize or argue.

"Writing this I am thinking I must make sure I can afford to die."

So true, LOL!

Everyone is in business to make money and selling funeral plans is no different from selling a wedding plan. If they made 3 million that could be good or bad business depending on the size of their investment and number of clients. They are providing a service which some people find it helpful to mark use of.

My concern is that my friend has a very limited income and no property assets. She has chosen this plan and planned her funeral. What happens if she doesn't keep up her payments? Will she loose the money If she dies in 2 years will her children have to have the funeral she planned to benifit from the money she has already paid and pay the rest themselves or could they have a cheaper version. For me I would have put the money in a savings account but I think when times got hard she would use the money.

I should ask and I am sure she will raise the subject again. I will just have to try and not be critical as we have different ways of dealing with money.
I am sure we all have friends and family who have different money managing skills and philosophy

Writing this I am thinking I must make sure I can afford to die!

nina I'm really pleased your mum saved money and for her, it was a good decision.

I'm just basing my opinion on the fact that Golden Charter made a profit of nearly £3 million in their last annual statement, so the probability is that it's cheaper to not use them. It's not a guarantee that it will happen, but they are in business to make money.

Primrose the fact that mum had a prepaid plan saved us £500. As that was the increased cost by the time it was needed

That's good to know.

My aunt and uncle's joint funeral was paid for from their estate. All bills went to the solicitor who was dealing with it although my sister and I were executors.

The executors of your will are able to access funds for funeral costs from savings accounts, funeral directors know how this works and there's no problem at all there. There's no benefit to any of these plans - unless you're the company selling them of course!

Mum had a prepaid plan with Golden Charter. She paid up front and was garanteed that was the price however long she lived and she had a say in her arrangements. When the time came we took the documents to an undertaker who was part of the scheme and everything was sorted at no extra cost (baring food and drink for the wake of course).
I wouldn't do a monthly plan, I'd rather have a savings account to cover it.

I would much rather put the money into an interest-bearing joint savings account with my trusted next-of-kin, so that they had access to it when I die to help with expenses.

I have also given my instructions/wishes that I do not want a funeral service and a simple direct cremation is all that I require. Then my sons and whoever else wants to can go and have a beer or two and talk about me all they want.

Aggie
That was one point that bothered me. I shall ask my friend what happens if she misses payments or stops paying. Sometimes she is very short of money I thought committing herself to £480 a year could be difficult.

The money expert on TV wasn't very enthusiastic about them ,if you stop paying you get nothing , can't remember all the ins and outs

Well, we had thought about them as a matter of fact, because when one of us dies, the other could pay the funeral expenses, but if we both died together ( which does happen) the DC would have to suddenly pay a fortune ( before the sale of the house kicked in) or......would funeral directors wait for the money??
However, paying upfront supposes that the siad funeral firm will still be going strong when we die.I will await the thoughts of others.It would make it easier all round if the actual plans are in place, but there may be pitfalls?