Friday, May 15, 2015

Funeral Plans: Your Questions Answered

It makes sense to plan your funeral in advance. Here are some of the areas you may be concerned about.
1. What happens if the funeral plan provider goes out of business?
While this is considered unlikely, monies paid by you for your funeral plan will be received in accordance with the code of conduct of the UK's National Association of Pre-paid Funeral Plans (NAPFP) and will be fully protected. The money for your funeral is held in a a trust - a separate legal entity - which is regularly audited by independent actuaries and accountants. So your funeral would still be carried out according to your guaranteed funeral plan and the funeral director would be paid from the trust fund.
2. What if I move home?
Your guarantee is simply relocated to another funeral director convenient to your new home. If you decide to live abroad, you may apply for a refund. If you move home, please notify your funeral plan provider as soon as possible so we can ensure all records are up to date.
3. What are the advantages of paying for my funeral now? Why not put the money into a savings account?
Once you have paid for a pre-paid funeral plan, you will never have to pay any more for the funeral director's costs no matter how much these costs may rise in the future. No savings account can provide such a guarantee. In recent years funeral expenses have increased in excess of inflation. So why not secure your funeral requirements at today's price and then use the remainder of your savings just how you want!
4. What happens if the designated funeral director ceases to trade?
Your funeral plan provider will make the same arrangements with another local funeral director.
5. Are there any age or health limitations on who can purchase a funeral plan?
No. And no. Simple as that.
6. What if I want to take out a plan for someone else?
No problem, as long as the plan is suitable and required by that person.
7. What about insurance based funeral plans?
They have several disadvantages. Principally they don't guarantee to cover funeral costs or allow you to specify the arrangements. Even if you are in reasonable health, you may well end up paying much more in premiums than the insurance company will ever pay out and the funeral would need to be paid for, often well before the insurance paid out.
8. What if I die away from home?
Each plan includes collection from within a specified distance. If you are travelling away from your local area additional costs may be incurred. If you travel abroad you should obtain travel insurance to cover all eventualities.
9. Do funeral plans include burial?
Nowadays, most people are cremated. Accordingly the cost of a burial plot is usually not included. However, should you wish to be buried your funeral plan provider will be pleased to discuss this with you, with a view to you purchasing a plot at a cemetery of your choice. The cost and availability of a plot varies considerably throughout the country. If you already have a burial plot please provide the funeral plan provider with the information.

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