How does a funeral plan work and what do they cover?
The idea of funeral plans is that they protect your money until it’s needed to ensure that the funds go towards your funeral. You can pay monthly payments or a lump sum to the plan provider or directly to a funeral director. Your money can then either be invested into a trust fund with trustees or in an insurance policy, which is then put towards your funeral costs.
What’s covered in funeral plans varies greatly between providers. Some will only cover the funeral director’s bills and others will provide cover for a church service, limousine procession and viewings of the deceased. The cost of flowers, catering and burial plots are typically excluded. Make sure you compare as many plans as possible in order to get the best funeral plan for you.
You can also take out a joint funeral plan. A joint funeral plan is essentially a single funeral plan in two people’s names. It can only be used to cover one funeral, so you’d still need to payout for one of the funerals. The benefit of having a joint funeral plan in place is that it doesn’t cost as much as taking out two individual funeral plan policies.
You might also be wondering whether to get life insurance or a funeral plan. This will depend entirely on your personal circumstances. It’s important to weigh up the pros and cons of both and decided which one is more suitable for you, or whether you want to take out both for extra protection.