Wise financial planning considers not only what you need in life, but also in death. Many people have had to bear the burden of paying for funeral expenses, at times out of pocket. That’s why, if you’re thinking about saving up for the future, you also need to set aside funds for burial services. This way, your loved ones won’t have the added worry of financing a funeral service when the time comes.
There are two options available if you want to be financially ready for a funeral service. You can either get a funeral plan or an over 50s insurance policy. In this article, we will compare the pros and cons of each option.
Why choose a funeral plan?
Paying for a funeral plan in advance allows you to take care of every aspect of your finances. If you don’t want to pass the burden to your relatives, getting one now while you’re still able is the best option. The good thing is, you can pay for a plan for yourself or for another person. According to http://www.carrollandcarrollfunerals.co.uk/, the cost of a funeral plan depends on many factors. Also, you can either pay for a cremation plan or a burial plan depending on your preference.
You can pay for a plan in lump sum or instalments. Most funeral directors offer them. A basic service typically includes all the services needed when a person dies. But, you can pay more if you want a high-quality coffin, limousines to transport guests, and more. Some plans can also cover third-party expenses.
To make sure that your funds are safe, the money is invested in an insurance policy or a trust fund. Most Funeral plans are regulated by a private entity. And if you want to make sure that you’re getting a plan from a reputable provider, make sure that it’s registered with the FPA.
What is an over 50s insurance plan?
This type of policy or plan guarantees the payout when the insured dies. When you take out an over 50s policy, you’ll have to pay a monthly premium. Unfortunately, the benefit is also fixed. This means that any inflation won’t impact the value when you die. For those who will live a long life, this insurance policy could be a disadvantage. But, it’s a good option for those who can’t maintain a savings account.
One advantage of this plan is that the insurer won’t require medical underwriting. A person of poor health can get and pay for a plan and still get the same benefit. Also, you can choose a plan based on how much you can afford to pay. Unlike a funeral plan, there’s a minimum premium required.
Alternative options to save for a funeral
In addition to these two options, you can also set aside money for a funeral by getting regular life insurance, opening a savings account, or as a benefit from your employer. All of these options have pros and cons as well. It’s important to compare the benefits and know which works best for you according to your capacity to pay.
I am Daisy Bell and a pro-level blogger with years of experience in writing for multiple industries. I have extensive knowledge of Food, Fitness, Healthcare, business, fashion, and many other popular niches. I have post graduated in arts and have keen interest in traveling.