While some people don't think about planning their own funeral in advance, you might have already decided that this is the right thing to do. You want some control over what happens after you die, and you don't want your family to have to go through the difficult process of arranging everything while they are grieving.
These aren't the only benefits of arranging a prepaid funeral. This solution also has financial advantages for you and your family. What are they?
1. Avoid Future Cost Inflation
Funeral costs don't stay the same. They typically go up year by year. So, for example, the costs of a cremation service have risen annually by 6% since 2014. It seems that the longer you live, the more expensive your funeral will get.
If you organise a prepaid funeral, then you pay for everything in advance. The cost of your plan is set at today's rates. So, you lock in today's prices. This could leave more money in your estate for your family when you do die.
2. Take the Burden Off Your Loved Ones
If you don't leave specific financial provision for your funeral, then your nearest and dearest have to bear the costs. If you don't have any assets, then your family will have to find the cash to bury or cremate you out of their own pockets. This can be a big financial strain, especially if you die unexpectedly.
Even you if leave enough money behind to cover these costs, your family might not be able to access your estate in time. They may have to initially pay for the funeral. If you prepay, money isn't an issue at this difficult time. You've already decided how you want your funeral to go and you've paid for it upfront.
3. Improve Your Pension Eligibility
Your savings and assets affect the amount of pension you receive from the state. Your financial eligibility is generally asset tested here. So, the more savings you have, the less pension you are likely to receive.
If you put some of your savings into buying a prepaid funeral plan, you might boost your pension income at the same time. On their own, your savings are an asset, but they stop being counted as one if you use them to buy a funeral in advance in some circumstances.
If you're interested in learning more about prepaid funerals, talk to funeral directors or companies that offer these products.