When first exploring the idea of a prepaid funeral plan, many people are unsure of how they work, and whether they are a good fit. At Funeral Plan Plus we are happy to answer these questions for you.
What is a prepaid funeral plan?
A prepaid funeral plan is purchased with either a single one-off payment, or a monthly payment plan, generally by direct debit. It allows an individual to pay in advance for their own funeral, or someone else's.
The money is then used by the funeral plan provider to deliver the agreed funeral options on the death of the person named in the plan. Most independent funeral plan providers will use local, trusted funeral directors to make the arrangements.
Is the money you invest in your plan protected?
The money to provide your funeral may be held safely in two ways. Typically, funeral plan funds are held in a life insurance policy called a 'whole of life policy', or in a trust which is not controlled by the funeral plan provider.
Whichever method is used, your funds are held separately from the funeral plan provider until you pass away and they need to be used.
How is your funeral plan actioned when you die?
It's important that when you take out a funeral plan you notify loved ones of your plan, where you purchased it, and if appropriate, let them know where the paperwork is stored.
When you pass away, your loved ones will be able to contact the funeral plan provider immediately to get the arrangement process started.
If you haven't left details of your plan, the Funeral Planning Authority (FPA) do offer a free plan tracing service, details are available on their website. This is not an ideal scenario, so definitely make sure your relatives are aware of your purchased plan.
Are funeral plans subject to inheritance tax?
No, funeral plans are not subject to inheritance tax. They are not counted towards the value of your estate, unlike savings, which are liable to taxation if you meet the tax thresholds.
Is the funeral plan provider registered with the FPA?
Yes, the funeral plan quotes and plans you will receive are from a provider registered with the Funeral Planning Authority (FPA).
Although there is no statutory regulation for funeral plans, the FPA provide an overseeing body to ensure best practice is observed. The leading reputable companies are registered with the FPA. You can access the list here.
Do I need a funeral plan?
It is of course, everyone's choice how they choose to plan for their funeral, or not plan at all. But paying for your funeral in advance puts you in control.
With prices of funerals continuing to spiral ever upwards, many people are choosing to take out a prepaid funeral plan.
This allows you to pay either a small monthly payment, or a one off payment, to fix your funeral costs at today's prices.
There are plenty of options available, you can choose a basic plan, or incorporate add-on options such as flowers, cars, headstones etc.
Can I choose what options I want for my funeral?
Yes, of course.
Depending on the particular plan you choose, you are able to specify what your funeral director will need to do to carry out your wishes when you are gone.
From flowers to cars, to headstones. You choose how you want your final journey to be organised.
Are there different levels of funeral plan?
Yes, your funeral plan advisor will provide you with all the information you need.
Depending on your budget and the type of send-off you want, a plan exists to meet your specific requirements.
How do I get a quote?
Getting a funeral plan quote is simple. Just complete the simple form here, it takes less than a minute.
Once completed, a member of the team of expert funeral plan staff will search the best options for you, and come up with a price and policy to suit your needs.
If you are not entirely satisfied with their quote, you have no obligation to buy. If you are happy, then they will complete the paperwork for you and get the paperwork in the post.
It's as easy as 1,2,3.