Why you need a Prepaid Funeral Plan
You have probably seen the recent TV adverts encouraging you to purchase a Prepaid Funeral Plan, but why are they so popular and why would you want to purchase one?
The first and often overriding reason for purchasing a Prepaid Funeral Plan is the enormous financial benefit to you and your loved ones. There has been a lot of research carried out by various organisations and they all come to the same conclusion; the cost of funerals goes up year on year and on average the cost of a funeral doubles every 10 years. Do you know of any investments which can be relied upon to double every 10 years?
So as an example, someone who takes out a prepaid funeral plan today at £3,000 at the age of 50 will have no more to pay for the full funeral when they pass away. Now let’s say that person lives another 20 years. When the funeral is needed, the cost will be £12,000, but because the funeral plan has been paid for in full there is no further payment to make . So, the full cost of the funeral in 20 years is still £3,000 if you have already prepaid for the plan. Now if that 50-year-old lives until they are 80, 90, 100 or maybe more, the prepaid funeral plan is still fully guaranteed for the original price of £3,000 thereby saving over £9,000 or more.
Many people I meet say they have already put the money into an ISA and they don’t need to buy a prepaid funeral plan. Well, £3,000 in an ISA will currently earn 1% if you’re lucky. In 20 years’ time that will be worth £3,660 leaving your family to find an extra £8,340!
Now you can see why so many people are buying prepaid funeral plans today!
However, not all prepaid funeral plans are created equally. Many prepaid funeral plans will only guarantee the cost of the funeral, other items such as Doctor’s fees, Minister’s fees and other administration costs are linked to inflation. These plans will have an additional fee to pay at the time of the funeral. So if you are comparing prepaid funeral plans always ask if there are extra charges or prices linked to inflation and if there are then talk with us first as we will probably be able to find a better deal for you.
Call Atheneys today to arrange your prepaid funeral plan. We only deal with the best plans in the market and they can be paid in a lump sum or by instalments from as little as only £12.30 per week.
For no-nonsense friendly and professional advice talk to Atheneys for all your Estate Planning requirements.
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