The popularity of Funeral Plans in the UK has risen considerably over the past few 15 years.
According to the Funeral Planning Authority, over three times as many people took out a funeral plan in 2020 as they did in 2006.
The lure of beating rising costs, easing stress for next of kin and the flexible payment options associated with a funeral plan has made them an enticing prospect for many. But the UK still lags well behind countries on the continent.
In Holland it’s thought that 70% of the population have a funeral plan in place while figures are also similar in Germany and Spain.
Though funeral plans are increasing in popularity in the UK, we Brits are way behind that percentage. Whether this is down to a lack of awareness of funeral plans or a modest UK funeral plan market compared to our friends overseas, it’s difficult to know.
Yet one thing is for sure, the popularity of funeral plans continues to soar and it’s not difficult to see why.
Let’s explore this in a bit more depth with our five reasons why you should take out a funeral plan.
1. Beat the rising costs
This is the biggest positive for many.
There is of course no guarantee that funeral costs will continue to rise. However since 2004, the price of a funeral has risen by over 100% - from less than £2,000 18 years ago to £4,056 in 2021, according to Sunlife’s latest report.
What a funeral plan does is protect from you these potential rises and locks in your price at what you pay today, even if you don’t need your plan for another 30 years. And it’s guaranteed to remain fixed.
With Distinct too, you have the option of how to pay - you can pay £1,475 for an Unattended Direct Cremation funeral plan right away, or just can split these payments over 12 interest-free monthly instalments for £122.92.
It’s just a way of making things easier and more financially flexible for you.
2. Have the funeral you want
One of the special things about putting a funeral plan in place is that it allows you to lay out what type of funeral you’d like to have - be it a direct cremation, a traditional send off or something else.
It’s your chance to do things how you’d like to do it, to personalise your own funeral in your own special way, in whichever way you’d like.
It’s also about easing the stress and easing the burden on others, preventing your next of kin from having to ask the difficult question: “How would they have wanted their funeral to be carried out?”
3. Purchase with more clarity
The death of a loved one is inevitably a tough and emotional time for us all, and having to deal with arranging a funeral on top of everything else can be an ordeal.
A funeral plan allows you to not only reduce this stress for your next of kin from an organisational perspective away from the turbulence of grief, but also allows you to make a decision in advance with clarity and rationale - on your own or together with your loved one.
4. Avoid cash flow problems
One common question asked by those sceptical about funeral plans is, “Why should I give my money to you when I could set it aside in a savings account?”
The answer to that is twofold.
Firstly, if you put aside your money in a savings account your loved ones may end up getting just a percentage of the money you set aside for your funeral due to inheritance tax (if you’re liable). But funeral plans are completely exempt from inheritance tax meaning you won’t lose a single pound you set aside.
Secondly, it’s very unlikely that your loved ones will receive the money from your savings account before the funeral bill comes through, due to the compulsory legal proceedings following a death. However a funeral plan allows your money to be accessed immediately so your funeral can be carried out with no complications.
5. Guaranteed acceptance & flexible payment options
Unlike a lot of insurance policies, there are no medicals or screenings to undertake with most funeral plans. Indeed, with Distinct's funeral plans, acceptance is guaranteed as long as you are over the age of 18, and there are no increases in price no matter your age or the state of your health.
There are also a number of flexible payment options. You can pay for the plan in one lump sum or you can split the costs over 6 to 12 interest-free months depending on what suits you best. At Distinct we make all the arrangements too and even help with your paperwork if you’d like.
The plans can be paid by credit card, debit card, cheque or by monthly direct debit instalments and plans can be cancelled at any time.
You can also get more information with our free funeral plans guide which is available by post or online.
You can take out a plan today by calling us on 0808 163 1796, emailing us or even by buying your plan online.
Or if you want to talk through any questions or queries you may have, our personal advisors are available on 0808 159 9443.
