When is a Prepaid Funeral Plan Not a Prepaid Funeral Plan?

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Online over 50 specialist launches the first all inclusive funeral prepayment visual aid in a bid to increase transparency and clarity for confused customers trying to find the most suitable option.

best funeral prepayment options

What is the best way to prepay for a funeral?

With the launch of their new customer friendly visual aid “Which is the best funeral prepayment option”, Over50choices is looking to dispel the belief many over 50s have that an Over 50s life insurance plan will pay for the insured’s funeral, when in reality it actually pays out a cash sum on death that can be used to help ‘towards’ funeral costs.

With over 135,000 prepaid funeral plans sold last year alone and nearly 300,000 Over 50 Life Insurance plans, advance planning of funeral costs is without doubt a growing business.

So when funeral planning expert Over50choices was approached by a confused customer wanting to buy an Over 50 Life Insurance plan to ‘guarantee her funeral costs’, it became alarmingly clear that something needed to be done to clarify consumers options.

Speaking of the confusion, Over50choices MD Ashley Shepherd said, “Over 50 Life insurance does have a place, especially for customers looking for a plan that is simple to apply for, guaranteed to accept them and will pay out a cash sum to the family when the time comes however if they are looking for a way to prepay funeral costs, there are other options available that will guarantee to cover some if not all of the costs when the time comes.”

A Prepaid funeral Plan is the only way to guarantee prepayment of the funeral director’s services at today’s prices; an opportunity to potentially save money given the alarming rise of funeral costs averaging 7% pa for the last 9 years.

Although the vast majority of Over 50 Life Insurance Plans are purchased to help with funeral costs, consumers need to be aware and make provision for the fact that the cash sum paid out on death is fixed, so inflation will eat away at its true value over time. Basically there are no guarantees as to what extent it will help with costs when it comes to paying the funeral bill.

With many funeral plan and over 50 life insurers sharing the same space and terms when it comes to advertising, customers can be forgiven for not understanding the differences and potentially choosing a plan that does not fully meet their needs.

Frequently, affordability will determine which product consumers buy, with life plans starting from £5 a month and funeral plans costing around £3,000 or from £23 a month with fixed monthly payment options available through some prepaid funeral plan providers, but it is questionable just how many customers explore and truly understand all of the options available to them.

Ashley goes on to say that “Our infographic makes the options clear to the customer, walking them through the process of choosing a funeral prepayment option that fully suits their needs. At the end of the day you only have one chance to get this right so you need to be sure you have made the right choice.”

In addition to providing clear, jargon free information to help guide the customer, the Over50choices website also provides price and product comparisons on market leading funeral plans, over 50 life insurance and regular whole of life insurance; providing the UK’s widest choice of funeral payment options and a one stop shop for funeral planning needs.

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Ashley Shepherd
since: 04/2011
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