How can you financially plan for a funeral during the cost of living increase?
Everyone deserves a dignified funeral, whether this is a direct cremation with no service or a larger affair which reflects religious or cultural beliefs. Although the cost of living increase is affecting everyone, there are a few ways to try and mitigate the financial strain when the time comes.
For information on what to do when someone passes away, please click here.
Transparent Pricing
Funeral directors should be able to give you transparent pricing that clearly shows where your money will be going. Professional costs, i.e. the costs for the services provided by the funeral home, will include services such as a coffin, washing and dressing, transportation and any other essential costs.
Third party disbursements are costs outside of the funeral homes control, and these can increase each year. For example, crematorium costs are set by the local councils, and are known to increase each year, this is the same case with the doctors fee and celebrant fee or venue fees for a church or wake.
Create a funeral wishes plan
If you don’t currently have the funds to put aside or into a funeral plan, a good place to start would be to complete a funeral wishes form. This means that if you pass away, your friends, family or carers will have guidance on your last wishes. These don’t need to be within your will and can be held securely by a funeral home or by a close friend or family.
Government support
There is support available for funding a funeral for those who do may have the finances to do so. You can find information on how the Government can provide payments towards funeral payments. You may be entitled to a Funeral Expenses Payment (also called a Funeral Payment) if you get certain benefits and need help to pay for a funeral that you are arranging.
If you receive money from the estate of the person who has died your Funeral Expenses Payment will be deducted from these funds. The estate includes any money or property they had but not a house or personal things left to a widow, widower or surviving civil partner.
A Funeral Expenses Payment can help pay for some of the costs of the following:
– Burial fees for a particular plot
– Cremation fees, including the cost of the doctor’s certificate
– Travel to arrange or go to the funeral
– The cost of moving the body within the UK, if it’s being moved more than 50 miles
– Death certificates or other documents
– You can also get up to £1,000 for any other funeral expenses, such as funeral director’s fees, flowers or the coffin
Prepaid funeral plans
Another option would be to take out a prepaid funeral plan. This allows you to either pay a lump sum or monthly instalments, in order to secure your funeral fees. Your funeral director will note down your preferences such as crematorium location, music, clothing and any other specifics you have decided on.
They will then provide a cost outline which, once paid, secures your funeral at today’s cost and is placed in a trust to protect the funds. Interest accrued on the funds in the trust means that any increase in third party costs is covered.
Lower cost options
It’s important to not feel pressured to hold a large and expensive funeral, if this is not feasible within your budget. Direct cremations have increased in popularity recently, which means families don’t have to worry about organising an event during a difficult time. A direct cremation is a non-attended funeral, which enables loved ones to hold a memorial in their own time and their own way at a later date.
Still need help?
Get in touch with our team who will be happy to help you either arrange a prepaid funeral or help you determine how to fund a funeral at the time of need.