from the Experts
Upton-upon-Severn’s only qualified, independent funeral directors.
Owned and run by the Jackson family.
Pre-paid funeral plans have suddenly become a big business and a new sales venture for many different companies who have very little care of the purchaser's needs.
Here's how it works:
Funeral plan leads are largely collected through call centres who then sell the information to independent estate planning companies, even some financial advisors or just a general sales company. It seems that you need little or no knowledge of how a funeral is arranged to be able to sell them.
Alternatively, you can get funeral insurance cover through the Post Office, Asda, Tesco etc the list goes on.
There are a few big issues with both of these.
Firstly, funeral plan sellers are just that 'sellers'. They have no training or knowledge of the funeral profession. They certainly have no inclanation of local crematorium costs, church fees, how to purchase a grave and could not begin explain to you why the doctor's cremation certificates are needed.
It is a bit like asking a mechanic to remove perform root canal treatment, he may be good at fixing things but I would prefer the qualified dentist.
Secondly, and more importantly, they only sell the funeral plans as it pays them a very large commission. They are no-one to be seen 10 years later when the funeral plan has not covered the explenses. I will try to explain:
You, pay your salesman £3,600 for the funeral plan. You are told that this fixes the funeral at today's costs. What actually happens is that £125 - £250 will be kept by the plan provider for administration costs (this is completely normally), £600 - £750 will then be paid to the agent as a commission. At the top end of these fees you are now left with £2600. This means that you are already £1000 short of the funeral cost and there are not many funeral directors who will accept your funeral plan or they begin a working relationship with you by asking for the shortfall.
Had you purchased the funeral plan from the funeral director, you are dealing with someone qualified to advise you on specific costs and funeral procedure. You will still need to pay the £125 - £250 administration fee to the plan provider but that is it. The funeral director does not get a commission, you are now in a much better financial position for the future and 99% of the time you will not be asked for anymore.
Moving on to funeral insurance, over 50 cover, funeral assurance, low cost cover etc. the names vary but the product is still the same. With these types of insurance you pay less per month but must pay every month until either your 90th birthday or pass away, whichever comes first. If you stop paying then the cover stops. You will enivitably pay more in than you get out, for instance;
From 50 Funeral Plan from Golden Leaves (Prices correct as of 21st May 2018)
Platinum Package £3,809.00
Paying by fixed monthly payments for a 50 year old.
£30.51 per month
If you pay until you are 90 then you have paid a staggering
£30.51 x 480 months (40 years) = £14,644.80
It may be a smaller payment each month but it will cost you in the long run and you still have only guaranteed the funeral director's costs not the third party costs so you may have more to pay at the time of the funeral.
If you are looking in to any form of cover for a funeral, please do some research and get advice from a qualified funeral director.
For more advice or discuss a plan you may have purchased and are worried about, call us on 01684 594971.
Please get in touch - we're here to help.
Call us on 01684 594971 (24 hours a day)