As we get older, it’s natural to think more often about how we can take care of our family when we’re no longer around. Making financial provision for your funeral can be an important part of protecting your loved ones from unexpected money worries.
If you are over 50, what are the options for planning ahead for funeral costs?
Paying for your funeral
People making provisions to pay for their funeral typically use their savings, take out life insurance or set up a pre-paid funeral plan.
Relying on your savings is a popular way to pay for your funeral. However, savings rates are likely to fall soon, making it harder to grow your funeral fund with regular savings. Rising funeral costs - up almost 5% between 2022 and 2023 - further compound the chance of a savings shortfall.
Perhaps most importantly for your family, unless you already have significant savings, if you were to die unexpectedly they would be left to cover the cost of your funeral.
Life insurance
A life insurance payout can be used to cover the cost of your funeral and has the benefit of paying out if you die unexpectedly. However, the older you get the more expensive general life cover will be.
Over-50s life insurance is promoted as a way to fund your funeral. The policies guarantee a fixed lump sum when you die. They typically don’t require a medical and will refund money paid if you die within the first year of taking out the policy
However, as with regular savings, there is no guarantee that the payout will cover your funeral costs.
Pre-paid funeral plans
With Golden Charter, you can choose from a range of five funeral plans designed to suit different budgets with a range of payment options.
There are also added benefits available from setting up a pre-paid funeral plan versus regular savings or over-50s insurance.
While you can state your funeral wishes independently, a pre-paid funeral plan allows you to plan your funeral in detail and share exactly what you want with your funeral director. This makes sure you get your funeral your way and saves your family from the guesswork of deciding what you want.
Selecting a pre-paid funeral plan that meets your needs also allows you to set the budget for your funeral. Golden Charter funeral plans let you lock in the cost of the funeral director services included in your plan at today’s prices. Our plans also include a contribution towards third party costs, such as the cremation or burial fees, plus the minister or officiant’s fee to perform a service. So, besides from protecting your family from potential price rises on funeral director services, you are also removing any pressure they might feel to ‘do right by you’ and spend more money than you would want.
Take the next step towards peace of mind and view our full range of plans for more information on flexible payment options.
