What is a funeral plan?
A pre-paid funeral plan is a funeral purchased in advance. It allows you to pay for your funeral at today’s cost. We have seen that funeral costs have increased tremendously in recent past therefore booking funeral services in advance is always a good investment for the future.
However, we have seen that not all plans are guaranteed specially if you are going for a funeral with burial services. Therefore it is more important to look at the plans carefully before committing to any pre-paid funeral plans since these are expensive. See our funeral plans comparison table for more details.
How pre-paid funeral plans work
Pre-paid funeral plans can be classified or brought to you in two ways: either from a funeral plan provider or from a local funeral director. However, most funeral services providers will allow a one-off payment in advance or may also allow you to go for an installment payment across a period of 12 months to 120 months.
If you are looking forward to pay in installments then it could cost you more due to administration feels and their interest. If you are choosing 60 months installments then it could add up 15% to 26% in your overall cost making it more expensive. Ideally, One-off payments looks to be a better option.
Check what’s included in a funeral plan
It is very important to check what’s included in funeral plan. For example, a simple funeral plan may not include lot of things like a church service, use of limousine or maybe a distance barrier to collect the deceased.
However, this is the case even with expensive funeral plans as well which may leave out lot of things including an important church service itself. While the funeral service provider may guarantee lot of service but may not end up providing all of them.
Funeral disbursements (third-party costs)
All the policies which we have looked till now guarantees your funeral cover. Therefore no matter how the funeral costs increased over the time, you will still be able to get full funeral coverage. However, the their party costs which is often known as disbursements including burial, doctor, church, minister, organists, choir, burial plot, etc doesn’t seems to be a guaranteed one since these amounts varies between funeral director providers.
According to the research conducted by our team, the average burial and cremation cost have been increased from 9.6% to 10.4% respectively between 2010 and 2011. So there is a good chance that you book your funeral today with the top funeral directors or with the best pre-paid funeral service providers.