Q: Prepaid funeral Plans Vs Life Insurance: my husband and I are thinking of paying for our funerals. We have a choice between life insurance and prepaid funeral plans. What are the pros and cons of each please?
A: The issue of funeral plans vs life insurance is an evergreen question. Only last month I did some deep digging on the subject, and, I alighted on the tales of Jack and Jill. Therefore, this matter is still fresh in my memory. And, I’ve still got all my notes.
But, before we examine our exemplars in detail, we’ll spell out some assumptions. The first is that you want your funeral to be paid for in full. That you don’t want your loved ones to have to put their hands in their pockets. Secondly, that you want to detail what happens at the ceremony. Also, you want to banish the possibility of the disgrace of having to pass the hat round to pay for your send off.
Finally, that you want to arrange now, for the send-off you deserve.
Jack and Jill, Their True Stories
In 2004, Jack put £1,820 in a life insurance policy with an eye to paying for his funeral, on his death in 2018, the account held £2,957.
At the same time as Jack started his policy, Jill spent £1,820 on a funeral plan. When she died in 2018, her plan covered the cost of her funeral – in full.
Jack’s kitty was 33% short, therefore, his family had to find £1,314 to pay for the funeral.
The beauty of the funeral plan is that the cost is set, no matter how much funerals cost at of your death, so you can be sure your funeral would be paid for.
The earlier you take out a funeral plan, the greater savings you’ll make, the more one reduces the emotional and financial strain on the family.
In conclusion, in the contest between prepaid funeral plans VS insurance, the funeral plan wins by a mile. You owe yourself and your family a debt of dignity, the prepaid funeral helps you discharge the debt.