Which is better? Funeral Plans or Life Insurance?
As soon as you made the decision to make financial preparations for your funeral, you may find it hard for you to decide between pre paid funerals and life insurance. Below we look at the difference between the two and which is the best option for you.
What is it that you want?
You may want your loved ones to receive a pay out when you pass away, to pay for funeral costs. However life insurance policies are not allocated to a funeral director and even if you want the funds to be used for your funeral, there are no guarantees this will happen or that the payout will cover the cost of you funeral.
If you want to make sure your loved ones have very little to do when at an already difficult time, then a funeral plan is the a much better option. Funeral plans are agreements made between you and a funeral plan provider, meaning that there is no need to burden loved ones with financial and emotional concerns as the funeral is paid for in advance.
Which will cost me more?
With life insurance policies you could up paying far more in than what your loved ones will receive. A number of life insurances will only pay out if you pass before the age of 80 (or 90 depending on the type of policy).
Yes the monthly payments may seem a lot less than a funeral plan premium however you will pay these over a much longer period of time. for example - A basic funeral plan over 5 years will cost you on average £50 per month. After the 5 years you will not have to pay a penny more and you have secured the funeral at the cost it is at the time you first that the plan out. Your money is 100% secured in a separate trust fund to your funeral plan provider to guarantee that funeral cost at the time of need. An average life insurance policy with decent cover will be on average £25 which you will have to pay for life or until you are 90 years old, whichever is sooner. This means if you take out a life insurance plan at the age of 60 you will have paid £7,500 in total compared to a pre paid funeral plan at today's cost of £3,500, and unlike some life insurance providers you are guaranteed to be accepted without a medical.
Like the life insurance industry, there are may funeral plan providers to choose from offering very similar packages but prices are the biggest difference between providers. Here at My Funeral Plan Supermarket we compare the entire funeral plan provider market for you, saving you time, money and the need to put details into 100's of sites. We work along the biggest funeral plan providers and will endeavor to ensure that we find the right funeral plan provider for your individual wants and needs and do not pass your details to any 3rd party marketing companies. Click here now to compare the funeral plan market or alternatively call us on 0330 113 1682