Why do I need a funeral plan?
With the rise in funeral costs outstripping inflation over recent years*, there’s no guarantee that, when the time comes, your bank or building society savings will cover the cost of your funeral. Your family may need to make up the shortfall or wait until assets from your estate are available.
A smart alternative to savings
Nobody wants their family to face money worries in the future. A funeral plan lets you fix the cost of the funeral director’s services covered by your plan at today’s prices. Our plans also include an allowance towards third party costs, such as the cremation or burial fees, plus the minister or officiant’s fee to perform the service.
Even if prices rise in the future, once your plan is paid for you'll have the reassurance of knowing there'll be nothing more to pay for your funeral directors services - guaranteed.
Funeral plan versus over 50s plans and personal savings
Whilst there are alternative ways to pay for your funeral, there’s no guarantee there’ll be enough money to cover the cost of the funeral.
Over 50s plans usually pay out a lump sum on death which can be used to pay for a funeral. But as the lump sum is fixed at the outset of the plan, any potential future increase in funeral prices could mean the payment won’t cover the cost of the funeral.
A Golden Charter funeral plan will pay for the funeral director’s services covered by your plan at the time they are required, no matter what happens to prices in the future. There will only be more to pay at the time of the funeral if the third party costs exceed the allowance when you buy your plan, or if the third party costs increase by more than the growth of your plan.
Funeral plans help protect rising costs and can help save your loved ones from the worry and stress of funeral arrangements.
Peace of mind that comes with planning ahead
Almost half of the people who organised a funeral in the last year didn’t know if their loved one wanted a burial or cremation. In addition, just 0.3% of people knew all of their loved one's wishes in 2022*. It’s important that you think about your funeral wishes and talk about your funeral arrangements with your loved ones. This ensures they know what provisions you have in place and what your wishes for your funeral service are.
As well as helping to give you and your loves ones peace of mind, planning ahead can also benefit your loved ones financially. 19% of families that organised a funeral in the last year said it caused them notable financial concerns with 33% taking money from savings or investments, 27% spending on credit cards and 23% borrowing money from friends or relatives to cover the cost of a funeral*.
For more information on what’s included in our funeral plans, you can compare them here.