Brighton may be one of the happiest places to live in the UK, but unfortunately, it’s also one of the most expensive places to die, with just the basic services for a funeral costing on average £4,881 (source: SunLife).

How many families have access to this sort of money, particularly when the unexpected happens?

Considering that funeral prices have been rising at an unprecedented rate since records began (+130% in 16 years), the going rate for funerals in Brighton could be significantly higher in just a few years.

As a result, more and more people are making the proactive decision to take out a prepaid funeral plan or a form of life insurance to cover the expense of their funeral before they pass away and protect loved ones from the financial burden.

Prepaid funeral plans even allow you to lock-in today’s prices, potentially saving your family £1000s when the time comes.

So, what are the PROs and CONs of prepaid funeral plans? And do the PROs outweigh the CONs? You can decide for yourself here.

Advantages of prepaid funeral plans:

  • Prepaid funeral plans allow you to pay today’s price for your funeral, protecting your loved ones from higher funeral costs in the future.
  • You can make all the arrangements for your own funeral, so that all your final wishes are met.
  • Protect your loved ones from the difficult burden of planning your funeral during a time of grief.
  • Protect a life insurance cash pay-out and/or cash savings from increasing funeral costs (free up more cash for loved ones to spend how they wish).
  • Choose a prepaid plan that’s within your budget and spread the cost of the plan, an option your loved ones may not have when the time comes.
  • 95% of prepaid funeral plans are approved by the Funeral Planning Authority (FPA), keeping your money safe until it’s needed.
  • Unlike life insurance, you don’t need to answer any medical questions and there’s no age limit for funeral plan applicants.

Disadvantages of prepaid funeral plans

  • Quite simply, a prepaid funeral plan costs money – money you could be spending whilst alive and well.
  • A prepaid funeral plan can only be used to pay for your funeral, as the funds go directly to the funeral director to carry out the services, unlike life insurance which pays out a cash lump sum that loved ones can spend how they see fit.
  • A prepaid funeral plan can’t be taken with you if you decide to move abroad, although you could transfer the plan into someone else’s name who still lives in the UK.
  • Prepaid funeral plans for burial won’t include the cost of a burial plot or headstone. Loved ones would need to find the funds for this (prices vary).
  • Prepaid funeral plans aren’t currently regulated by the Financial Conduct Authority (FCA), however this is likely to change as popularity of this type of product grows.

Compare funeral plans to find the best deal

It’s helpful to weigh up the PROs and CONs of prepaid funeral plans to understand more about the product and whether it’s right for you and your family.

There are also PROs and CONs for different funeral plan providers, as prices and services vary between them. Which is why it’s important to compare the options available, either by using a comparison site or by using an FCA registered broker, such as Brighton based Reassured.

Not many people are aware that using a broker service can save so much time and money, as they do all the hard work for you. They listen to your specific needs, talk you through suitable plans and provide quotes within your budget.

At the end of the day, the biggest advantage for taking out a prepaid funeral plan is having the peace of mind that your loved ones won’t have to plan or pay for your funeral during a time of grief. Your thoughtful act will be remembered as part of your legacy.

You can compare quotes for free and find your best funeral plan with award-winning local broker; Reassured.