How Pre-Paid funeral plan helps protect you against raising funeral costs.
You don’t need us to tell you that everything seems to go up in price every year. Unfortunately it’s just the same with funeral cost.
If, in 2004, you had put £1920 (then average cost of funeral) into a deposit savings account, then you would have seen descry of to about £2177 over the following 12 years.
However, I was the same period, the average cost of funerals has increased dramatically to £3897.
But because this plan prepaid funeral agreed funeral directors services at today’s cost, you are unaffected by any future rate price raises on those fees.
In addition to this, there is also an allowance for disbursements including in this suit applies from the outset that this figure is indexed which enables the allowance to increase annually to help it combat rising disbursement costs.
With funeral costs raising in excess of the annual rate of inflation, it is an unfortunate fact that for many families, budgeting for funeral by traditional means may no longer be sufficient to cover the cost.
According to Bank of England the current rate of inflation is 3% by comparison according to Sun life cost of dying report 2017 the average cost of basic funeral rose from £3897 in 2016 to £4078 in 2017 an increase of 4.7% this means that over the last year average basic funeral cost have reason well in excess of inflation.
A real alternative to saving for your funeral
A Pre-Paid plan like this can offer a better financial option than putting money in a savings account to pay for future funeral costs.
Since 2004 funeral costs have soared but interest paid on savings accounts has remained very low. The amount of money which would have paid for a funeral back then, plus the small amount of interest and of the years would not cover the cost of average funeral today. Your family would be left with substantial extra amount to fund, (at today’s calculation are approximately £2000) quite apart from having to access your saving accounts to pay for the funeral.
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