A recent report by the Local Government Association (LGA) showed that nearly 3,000 funerals in 2010 were funded by local council authorities.*
The main reason behind this was the growing number of families who can’t afford funeral costs. Councils in England & Wales have a legal obligation to provide a funeral when someone dies out of hospital and there is no next of kin able to make the funeral payment.
Over half the councils included in the research said they had experienced an increase in the number of families not able to pay for the funeral of a loved one.
Funeral payment issues only add to the stress and upset of someone passing away. Below are a few funeral payment options which could prevent this situation arising.
Methods of funeral payment
* Full payment in advance
If you’re really keen to have a particular kind of funeral service, you might want to make a full payment in advance at one point in your life when you have the spare money.
This method of funeral payment will secure the funeral you really want and give you peace of mind that your wishes will be carried out with being a financial burden on the family you leave behind.
The other advantage of making a full funeral payment in advance is that you will pay today’s prices and won’t be affected by inflation as the years go on.
* Monthly instalments over a set period
If you’re not in a position to make a one-off funeral payment for the full amount, you might want to consider paying monthly.
Depending on the type of funeral you’d like, there may be options to pay over one year right up to five years, to make it more affordable.
If you decide on this method of funeral payment, you should be aware that there will often be a charge for paying in instalments.
* Lower monthly payments if you’re between 50 and 80
Some funeral insurance providers have a further option for those between the ages of 50 and 80. Under these plans you can make a low monthly funeral payment for the rest of your life.
However, you’ll usually be required to pay into the plan every month for at least two years before you’re fully covered.
The monthly funeral payments under this plan will be significantly lower than paying over a set period of say two or three years.
The Co-operative Life Planning provides a range of funeral payment methods for those looking for pre paid funeral plans