As well as thinking about funding care, buying a funeral plan at this time can be a good idea.
It means that your funeral can be chosen and planned calmly in advance.
Your executors will not require access to your estate to pay for your funeral before probate has been granted.
It may protect a little more of your estate for your beneficiaries.
It allows you to buy your funeral at today's prices.
The average cost of a funeral in 2004 was £1,920, today it’s £4,271.* That’s an increase of 122% – and well above inflation. While no one can predict the future, at this rate, in another ten years the average cost of a funeral could be more than £7,500.**
Having bought a funeral plan, you and your family can relax, knowing that when the time comes your family will not have the additional worry of planning everything and your wishes will be known.
Buying a funeral plan secures the funeral directors services included in the plan at today's prices.
Also, paying for your funeral now may protect a little extra for your beneficiaries. For example, if your assets were to fall to England’s Local Authority funding limit of £23,250, your funeral is already paid for so the cost is not taken from your remaining estate.†
The funeral director’s services included in the plan are guaranteed to be covered with nothing more to pay at the time of the funeral. Most plans also include an allowance towards third party costs, which are the services and fees outside of the funeral director’s control, such as fees for burial or cremation and payment for the clergy or officiant.
*SunLife Cost of Dying Report, 2018 **Projections by Golden Charter based on SunLife Cost of Dying research
† If a funeral plan is purchased close to the time that funds run down to local authority funding levels it is possible that the purchase will be regarded as a deprivation of assets.