What is a Prepaid Funeral Plan ?

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WHAT IS A PRE PAID FUNERAL PLAN | PREPAID BURIAL PLAN  - Article 

What are PrePaid Funeral Plans / Prepaid Burial Plans ?

Funeral plans Pre-paid or Prepaid Burial Plans are specialist policies which enable individuals to plan and thus pay for their funeral in advance of their death.

By purchasing a Pre-paid Funeral Plan much of the decision making and organising which is often left to their next of kin at this incredibly difficult time is removed. The plans - also known as Funeral Bonds, prepaid Funerals, prepaid funeral, prepay funeral, prepaid funeral plans, burial plans, funeral home bond, Pre-arranged Funeral Plans allow individuals to take control over their own funeral & even personalise the occasion.

Many companies who supply these plans will be able to offer many variety of packages to choose from. See below

Typical Key Features ~ Compare Prepaid Funeral plan / Prepaid Burial plan:

• Usually 4 types of schemes based on cost - Simple, Traditional, Exclusive, Green 
• Note that some more basic prepaid funeral plans may still not cover full funeral costs provisions
• Can be paid for upfront by Lump Sum or via Monthly Installments option
• Index linked benefits to help ensure relevant funeral costs are covered whenever needed
• Prepaid Burial Plan benefits held in separate secure trust by a board of trustees
• Can be also purchased for a relative or by a 3rd party 
• Full choice of your own Funeral directors, professional services all paid for
• Advice on registration, documentation and certification for the funeral
• Removal from place of death to Funeral directors premises - some include abroad
• Care of deceased prior to Funeral & Type of Coffin specified
• Use of Chapel of rest for visiting
• Attendance of conductor and bearers on day of the Funeral
• Provision of Hearse & Limousine for service at local Church or Crematorium
• Full listing of floral tributes & Thank you cards
• Cancellation fees & Options to change arrangements
• Bereavement counselling (where available)
• A tree planted in memoriam in a Forest
• Fees for Local Church, Place of Worship, Ministers, Doctors & Crematorium 
  
                                                                        

Looking for a Funeral Plan Comparison - because costs have risen sharply ££

As we all must pass on at some time in the future, note Funeral & Burial costs have actually risen sharply in the last few years and by as much as 40% in some parts of the UK.  It is impossible to therefore predict what these costs might be in 5 or 10 years time. Apply now for funeral insurance / pre-paid funeral plan quote

Cost of a Funeral ~ Funeral Planning

Typical average Uk costs to consider maybe as follows [ but will naturally vary based on location in Uk - it all sadly adds up ]

• Burial of Adult in Coffin - average £700-1000 
• Burial of Cremated Remains Services + Fees Cost of Cremation Certificates filled out by doctors - average £500
• Creation of Headstone Foundation, Vase, Removal and replacement - average £300
• Professional Fees arrangements and provision of funeral director - average £500
• Transport Hire of Hearse or Limousine - average £400
• Coffins will vary from type - average £300-£1000
• Services and Fees Announcements in local / national newspapers - average £50
• Flowers at Church or Home - average £200
  
  Also around 60% or more of the UK public have also not even made a will or their will is out of date and invalid - thus ensuring their final wishes re their own funeral planning are never successfully met. Programmes such as the BBC's Heir Hunters show what can happen when a will is not made & maybe some unlikely beneficiaries.

Costs of Land are Rising - So The Cost of Burial Plots are Rising 

• When a grave is bought - this does not mean you purchase the freehold or land itself. In fact, 'exclusive right of burial' means you are can sought of lease purchase the exclusive right to say who may be buried in a grave for a set period.
• As such many people do not realise that once someone has been buried, they therefore do not own the land that they are buried in forever; very few local authorities sell grave plots 'in perpetuity'.
• "Burial Rights" may also include the right to erect a memorial on the grave for the period of the lease. When their lease is due to expire, a grave owner will then be sent a letter that invites them to renew for further periods.
• Generally speaking, local authorities will usually only sell the exclusive right to a grave space for a typically last for between 25 to 100 years.
• The owner can then opt to renew the exclusive rights of burial for a further term.
• If the lease is not renewed, the headstone can be removed & collected by the owner [ which is probably unlikely ] or usually destroyed by the local authority which you maybe charged for. 
• As such, existing burials in the plot are not disturbed or moved, but remaining space in the plot may be resold.

Joint Burial Plots 

•  If you are the registered owner of a burial plot and would like someone else from your family to be buried to rest there - 
• You can assign the rights to make them joint owners like buying a house.
• You can also state in your Will that another person has the 'right' to be buried in the same plot. This might be the case if, for example, you want either say your husband or wife to be buried beside you
• Once you assign the rights, the grave is then co-owned by all the people who intend to be buried there.
• If you have a 'Grant of Exclusive Right of Burial', you can, if you wish, transfer those rights to another person.
• So if you wish to do this during your lifetime, you need to complete the correct paperwork and submit this to the correct council department.
• Equally, if the registered owner of a grave has died, it may be the case that other family members want to arrange for a further burial to take place – or for an inscription to be added to the memorial.
• In this situation, a living owner must give their permission for a burial to take place – or for the memorial to be altered.
• To enable the burial request to happen, the 'exclusive right of burial' may need to be transferred to the person entitled to the rights.

       Shortage of land - Burial Plot Cost Issues

• One of the big issues with burying people in the UK is the shortage of land available; many local councils warn that they will run out of burial spaces within the next 20 years.
• This lack of space has led to a dramatic increase in burial costs in recent years, with the average burial plot now costing almost £1,000 - An ash plot re cremation maybe 1/2 this as less space is used.
• Hence some people consider instead cheaper Cremation benefits or perhaps ethical issues re not occupying the pressures on land space once died.
• [ Note: Burial costs are irrespective of the actual funeral service cost itself which may cost £3,500 ]

   The bad news is, as time goes on, the cost is only likely to rise, as the cost of land itself increases. 

Compare Prepaid Funeral Plans / Prepaid Burial Plans or Over 50's Life Cover ?

• Concerned to ensure your loved ones do not have to pay your Funeral costs ?
• Made Wills but not really thought about the practicality of Funeral Provision ?
• Have Medical problems - meaning Life Insurance would be difficult to obtain ?
• Concerned that if you have 50's lifecover it still maybe insufficient to cover increasing funeral prices ? 
• Unaware that many over 50's Lifecover plans have 1 or initial 2 year exclusion periods ?
• Also unaware that many over 50's Lifecover plans limit their levels of cover based on age
• Many over 50's Lifecover plans will not allow you to pay more than £100pm premiums
• Have some term lifecover plans but concerned they are ending in the near future ?
• Have savings but worried that they maybe insufficient or erroded by inflation
• Want to ensure that funeral costs are prepaid for an elderly relative who may not have the funds to do so

For some a Burial plan could be the ideal thoughtful & responsible approach rather than lifecover to a sensitive subject.

WHO ARE THE FUNERAL PLANNING AUTHORITY ?

The Funeral Planning Authority was set up to help protect consumers across the funeral planning sector www.funeralplanningauthority.co.uk

Currently there are over 20+ Funeral plans from providers registered by the Funeral Planning Authority. Their costs will usually vary - burial and cremation tend to be more expensive in the south of England. The difference in costs of simple and traditional plans partly reflects the types of coffin offered. Age Concern, Dignity & The Co-operative have a network of funeral directors to choose from; while for example Golden Charter and Golden Leaves let you compare your own prepaid burial plan via independant director - which maybe more to your preference ? 

All Funeral Plan Providers usually offer: a hearse; care of body; guidance on registration and certification of death; arrangement and supervision of the funeral by the funeral director; and confidential advice. 

A "Registered Provider" is a person or a business entity that provides funeral plans and is regulated by the Authority. Registered Providers regulated by the FPA maintain high standards of professional conduct; The money paid by customers to Registered Providers for a funeral is safeguarded so that, when the time comes, the funeral is provided in accordance with that plan;  Registered Providers state they shall co-operate in the delivery of the FPA's Pledge to Customers.

The following Providers of Pre Paid burial plans some of which are Registered by the Funeral Planning Authority:-

Advance Planning Limited         4 King Edwards Court King Edwards Square Sutton Coldfield B73 6AP

www.ageconcern.org.uk/AgeConcern/funeral_plans.asp

Advance Planning Limited offers Age Concern Funeral Plans to its customers.

Avalon Funeral Plans

Brooke Court
Lower Meadow Road
Handforth Dean
Wilmslow
Cheshire
SK9 3ND

www.avalonfuneralplans.com

Avalon Funeral Plans. Founded in 1990 they offer prepaid funeral plans with offices in Uk, Spain, Turkey & Cyprus

www.bristolfuneraldirectors.co.uk

Bristol Funeral Directors Limited offers the BFD Prepaid Burial Plan to customers in Bristol and surrounding areas ,through family owned independent funeral directors. Plans can be arranged to suit individual requirements and funds are held in a Trust, the Trustees of which are a major firm of Bristol solicitors.

Chelmsford Star Cooperative Society Ltd  86 Broomfield Road Chelmsford Essex CM1 1SS

www.chelmsfordstar.co.uk

Chelmsford Star Cooperative Society Ltd offers the Chelmsford Star Cooperative Society Funeral Plan to its customers.

www.clydebankfuneral.co.uk

Clydebank Co-operative is an independent regional retail Society offering the Co-operative Funeral Bond throughout the Clydebank and Greater Glasgow areas and is a member of the National Association of the Funeral Directors, the Funeral Planning Authority and the Co-operative Funeral Service Association. All services are provided on a 24 hour basis.

Dignity Pre Arrangement Limited 4 King Edwards Court King Edwards Square Sutton Coldfield B73 6AP

www.dignityfuneralplans.co.uk

Dignity Pre Arrangement Limited is a national prepaid burial plans provider and offers the Dignity funeral plans to its customers throughout the UK via funeral directors, the web, as well as 3rd parties such as Legal & General , Age UK, RIAS, Liverpool Victoria & Royal London .

www.lodgebros.co.uk

Family Funerals Trust Limited offers Pre-payment and Pre-arrangement Funeral Plans to its customers.

Funeral Planning Services Ltd was established in 1995 and provides a range of pre-payment funeral plans for clients of any age and state of health, in conjunction with independent funeral directors throughout the UK. Funeral payments are held in Funeral Planning Trust, with Capita Trust Company Ltd as Custodian Trustee.

Golden Charter. More than 160,000 people in Great Britain have planned their funerals with Golden Charter Funeral plans - an Independent Company which is owned by approximately 700 Funeral Directors who are members of the SAIFCharter Association. Golden Charter provides a truly nationwide service.           

 
Golden Leaves has been at the forefront of Pre-paid Funeral Planning since 1984 when plans first became available in the UK. Golden Leaves is available throughout the UK. Burial plans (outside the regulation of the FPA) are also available in Spain, Portugal & Cyprus, provided locally by reputable Funeral Directors , IFA's and authorised representatives

www.21stcenturyco-op.co.uk

Heart of England Co-operative Society Limited offers the Heart of England Cooperative Society Pre Funeral Planning to its customers.

Midlands Cooperative Society Li  Central House Hermes Road Lichfield Staffs WS13 6RH

www.undertakers.uk.com

Midlands Cooperative Society Limited offers the Midlands Cooperative Funeral Bond to its customers.

 
www.nafd.org.uk/funerals

Perfect Choice Funeral Plans are provided throughout the UK by funeral directors who are members of the National Association of Funeral Directors (NAFD). NAFD is an independent organisation that strives for the very highest standards in funeral service. 

www.reynoldsfuneralservices.co.uk

Reynolds Funeral Service does not now offer new funeral plans but remains registered in respect of existing plans

The Co-operative Funeralcare

Funeral Plan Service Centre 2nd Floor, Hanover Building Hanover Street Manchester M60 0AD

www.co-operativefuneralcare.co.uk

The Co-operative Funeralcare, as the UK's leading Funeral Director, offers the Co-operative Funeral Plan to customers throughout the UK which is available to purchase through different channels, including their own nationwide funeral home network, Co-operative Insurance Services Agents, regional building societies as well as directly, by telephone, post or by email.

Note that we do not advise on Prepaid Funeral Plans.
Funeral Plans are not regulated by the FCA.
This article is for generic guidance only