Planning your own funeral may seem a bit morbid, but it makes sense both financially and emotionally for those you leave behind. A recent report revealed that the average cost of a basic funeral now stands at £3,590. And if funeral costs continue to rise at the same rate as we have seen over the last decade, by 2019, the average funeral will cost £4,489.
You can even estimate how much your own funeral may cost by using this funeral calculator – the results may surprise you.
Apart from the financial side of things, why plan a funeral?
If you plan your funeral, it means that your wishes will be carried out (so, whether you want to be buried or cremated; the music you want played; and so on).
For your family, it means they will not have the stress and upset of wondering how you would like your funeral – it is all written down and they can simply follow your wishes.
And if you die and are not leaving anyone behind, then you can feel safe in the knowledge again that your wishes will be carried out.
Funeral planning options
Some people think that an over 50s life insurance plan is a way of having money available for your funeral costs. And while it can be, a more tailored approach could be by using a product called a funeral plan, which is guaranteed to pay all your funeral director’s costs.
Here are the differences:
Funeral Plans typically cost from around £23 a month (or a one off payment from just over £3,000) and guarantee to cover all of your funeral director’s costs, no matter when you die. So even if inflation increases the funeral costs ten-fold by the time you die, you will still get exactly what you asked for at no extra cost to your family.
Funeral Plans may also be known as Prepaid Funeral Plans.
Over 50s Life Insurance Plans start from £10 a month and pay out a fixed cash sum when you die. Your family may use the money for funeral costs or simply as a cash gift. The important thing to note is that the amount that is paid out is fixed. So while a £5,000 sum insured may sound adequate to pay for a funeral nowadays, by the time you die, the cost of a funeral could be much more.
As you can see, there are a number of ways you can plan for your funeral costs.
Finally, if you still think that funeral planning is something you don’t need to worry about, the same study also highlighted that in the last year, the cost of dying has risen seven times faster than the cost of living.
Will your loved ones be able to send you off without the need for them to take out a loan or max out their credit card?