London, UK (PRWEB UK) 31 July 2014
When it comes to putting plans in place that will pay, or help to pay funeral costs, there are a number of options available however as most companies only offer one solution, customers frequently find themselves in a bit of a void, opting for one solution simply because they are completely oblivious to the other options available.
To combat this issue, Ashley Shepherd, Managing Director of over 50s personal finance website Over50choices has released his 5 top tips for choosing the best funeral prepayment option, aimed at helping the nation choose the most suitable plan and not just the one that is on offer at that particular time.
Over50choices 5 Top Tips to the Best Funeral Prepayment Options
1. Know what you are dealing with. Funeral costs currently average £3,456, having risen by an alarming 7% per year over the last decade; a trend that looks set to continue which means they could exceed £6,000 in just 10 years time.
2. Think about what is important to you. Do you want a plan that guarantees to cover funeral director’s costs or would you rather leave your family with a cash sum to use in a way that suits them?
3. Be sure on your budget. Do have £3,000 to £4,000 available that would buy a prepaid funeral plan outright or would you prefer to spread the cost with monthly payments?
4. Understand the options available.
Prepaid Funeral Plan
A Prepaid Funeral Plan guarantees to cover the cost of the funeral director’s services and usually includes an allowance for third party costs (cremation or burial fees and the minister’s and doctor’s charges). You can choose to pay in full; by instalments over 1 to 10 years ranging from £36 to £330, or by fixed monthly payment with premiums from £17 to £80 based on age, payable either until you die or your 90th birthday.
Over 50s Life Insurance
An Over 50s Life Insurance Plan pays out a cash sum when you die that can be used to help towards funeral costs. Acceptance is guaranteed as long as you are between the ages of 50 and 80, with no health or lifestyle questions to answer. Premiums start from around £7 a month, are payable either for life or until you die and you are covered for the full cash sum after an initial period of 1 to 2 years. As the cash sum is fixed, inflation will reduce the value of the cash sum over time and depending on how long you live, there is a chance that you may pay more in premiums than the cash sum paid out.
Whole of Life Insurance
Regular Whole of Life Insurance is similar to guaranteed over 50 life insurance however the application process is longer and does include health and lifestyle questions. There is a chance that you may be declined for life cover however if you are accepted, these types of life insurance plans typically pay out at least 40% more when compared to the guaranteed option, so may be worth considering if you are thinking of going down the life insurance route.
5. Compare quotes to get the best price. Whether you are looking for a prepaid funeral plan, Over 50 life insurance or regular whole of life insurance, prices and products do vary so it is always worth shopping around and comparing quotes using one of a number of comparison websites available.
Over50choices offers the widest choice of funeral prepayment options and the chance to compare all three plans in one place. For more information, visit their funeral planning section.