Differences between life insurance and funeral plans?

Differences between life insurance and funeral plans?The main advantage of a pre-payment plan over a savings account or life insurance policy is that you can pay now at today’s price and beat inflation – no matter when the service might be required.

It can be quite confusing with all the different plans out on the market and they all seem to do the same thing however you need to be careful about what they offer once you need to actually use the plan.  Some insurance policies on the market today look good because it is only £4.00 per month, however you still have a lump sum to pay at the end because what you have paid in still won’t cover the cost of a funeral.  Here are the benefits of a Funeral Plan.

The Benefits of a funeral plan

  • Freezes funeral director’s costs at today’s prices
  • Guarantees to beat the rising costs of funerals
  • Guarantees that your loved ones will not have to pay anything towards the funeral director’s services included in the your funeral plan
  • Reduces the stress and worry for your bereaved family and friends
  • Unaffected by low interest rates and rising inflation
  • The funds in Funeral Planning Trust can only be used for funeral costs
  • Choice to pay by lump sum or with flexible monthly instalments
  • Guaranteed acceptance for people over the age of 50
  • No need for any medical or health questionyesyes

Savings & Investments

What savings and investments do not cover:

  • Freezes funeral director’s costs at today’s prices
  • Guarantees to beat the rising costs of funerals
  • Guarantees that your loved ones will not have to pay anything towards the funeral director’s services included in the your funeral plan
  • Unaffected by low interest rates and rising inflation
  • The funds in Funeral Planning Trust can only be used for funeral costs

Over 50s Life Insurance

When you sign up to this kind of plan, you often have to agree to make monthly payments for the rest of your life. These plans are insurance schemes, so once money has been paid in, you can’t get it back, and there are usually fees involved if you want to cancel the plan early. If you can’t make your monthly payment one month, then the plan will stop and you won’t get a pay-out.

What over 50’s life insurance do not cover:

  • Freezes funeral director’s costs at today’s prices
  • Guarantees to beat the rising costs of funerals
  • Guarantees that your loved ones will not have to pay anything towards the funeral director’s services included in the your funeral plan
  • The funds in Funeral Planning Trust can only be used for funeral costs
  • Choice to pay by lump sum or with flexible monthly installments.

Differences between life insurance and funeral plans?

To summarize by choosing a pre payment plan over the various insurance policy on the market:

  • You can choose your own funeral arrangements, for your own peace of mind.
  • You will save your family from  having to make difficult decisions and trying to guess what you would have wanted, at such a distressing time.
  • Avoid rising funeral costs with an inflation-proof guarantee of the Funeral Director’s charges.
  • Financial security – the funeral payment is held in Funeral Planning Trust until it is needed.
  • The service will be provided by your local Funeral Director.
  • There is no age limit and there are no awkward health questions.
  • You can make a once-only payment or pay by monthly installments, whichever suits you.
  • All enquiries and arrangements are treated in confidence.
  • Complies with the Funeral Planning Authority Code of Practice and the Financial Services and Markets Act 2000.

 

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