I know death is an uncomfortable, even taboo at times topic, and you’d rather talk about anything else. But part of planning for your financial future includes preparing for major life events, and death is one of them. And not a cheap one.
According to Utility Saving Expert, back in 1913, you could get buried for just £2. That sum represented two weeks salary. The average cost of a funeral these days is £3,693. That explains why in 2014-2015 alone, over 150,000 prepaid funeral plans were sold. In 2015, there are over one million funeral plans in the UK.
Funeral plans are a great way to lock in your funeral costs. With estimates putting the price of a funeral at £8,726 by the year 2030, they could even be considered an investment!
The last thing you want, is your grieving family having to worry about money. Yet, over 100,000 adults incurred funeral debt in 2013. Even if you own a house, or other assets, your family would have to cover the cost of your funeral, before they are able to liquidate your estate. That could put them in a tough situation.
And while you think you might be ready to cover your funeral costs, you need to remember that they don’t include the other costs associated with death, like the memorial, death notices, estate administrators, and so on.
Planning and saving for a funeral plan can help protect you and your family for unexpected surprises on a very difficult day.
Funeral costs have increased nearly 88% since 2004. Meaning you would be better off if you had prepaid for a funeral plan than left your money in savings. You can also decide now how you want things done. There are several packages you can choose from, from the bare essentials to more luxurious options.
Planning for death may also open a dialog with your family. This is a topic you should discuss at least with your spouse, and children when they become adults. What will happen to the surviving spouse? How will the estate be split? Who gets what? Will you be buried or cremated? What about terminal care?
While the thought of that conversation may make you feel uncomfortable, look around you. I have seen people fight over the smallest detail about a funeral or a dead person’s belongings. Siblings who had a great relationships become estranged after their parents’ passing. Why? Money matters. Doing things today will help iron out the discontentment and find a way that is agreeable to all.
Yes, death is a very unpleasant topic. But you don’t want to leave your family burdened financially or having to figure out what to do when you are gone, adding financial hardship to their emotional one. Click here to compare funeral plans with Utility Saving Expert