Funeral Cost Single Person.
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Funeral Cost Single Person.
Funerals can cost any amount.
A simple cremation service and one car around £2,500.
A burial service around £5,000.
The total cost of a funeral is greater than just the funeral directors charges.
Making the Payment.
- Funeral directors will usually ask how you are funding the funeral when making arrangements.
- Funeral directors will usually wait a few weeks to allow for insurance policies to payout.
- Insurance companies will endeavour to make a payment in a few days if the policy was written in trust.
- If the family are paying from their own funds they will need to name the person to be responsible for the payment. That person will have to organise raising money from various family members who may all have different financial circumstances.
- Although the funeral directors will usually conduct the service before payment. Other areas will not proceed until after payment.
Delayed payment.
- Headstones, Memorial Plaques, Rose Bushes usually will not be commissioned until payment has been made, this may be different if they know an insurance policy is in place.
- For cremations release of the remains usually only take place after payment.
- All funeral directors work slightly differently but because you are dealing with an event in the future it is difficult to know exactly what terms will apply to your funeral or even which funeral director will be used.
Basic Cost.
- Assuming a basic funeral is £5,000.
- Not just the funeral director, but reception, clear up fund for bills i.e. Gas, Electricity, etc.
- Family members may raise this between themselves. These family members may all have different financial situations at the time.
- Even if there is a property to sell the bills would have to be paid before the property is sold.
Raise finance via a personal loan.
- £5,000 over the maximum period at a low rate of 6% would equal £96.00 per month over 5 years. Assuming the nominated person as A1 credit status. Are your children in a position to afford this?
- Most probably considerably more if via the funeral director.
Insurance Vs Personal Loan.
- You would have to have had a £10 per month policy running for 48 years before the total premiums equal the total cost of the loan at the lowest rate.
- Remember we are making plans for an event in the future.
- Assuming 5% inflation:
- £5000 today will need to be £8,552 in 10 years
- £5000 today will need to be £13,930 in 20 years
- We therefore recommend either having sufficient cover now to pay the higher cost. Or having an index linked policy. Increases with the retail price index so value of policy and funeral cost stay equal.
Insurance Policy.
- A minimum policy of £5,000 would be needed just to pay for the funeral.
- 60 year old Male Non-Smoker could have a £10,000 policy to age 80 from £10 per month.
60 year old Male Non-Smoker could have a £10,000 Whole of Life policy from £20 per month. (Whole of Life policies have no end date so they will pay out whenever you die.)
Organising your estate.
- We recommend having policies written in trust.
- We strongly advise making a will.
- We have various special offers available for our clients.
All individuals needs and circumstances are different the figures given are just an indication we would recommend conducting your own research, funeral cost can be considerable higher in some areas, also bear in mind the cost are not just the funeral, but settling the estate, paying utility bills, preparing a property for sale etc. Interest rates are currently at a historic low, remember we could be making plans for a event many years in the future when rates may not be as low.
"The Financial Services Authority does not regulate Wills or Trusts
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Funeral cost and budget adjustment for a couple.
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Funeral cost and budget adjustment for a couple.
- When one person dies, the household budget is usually only marginally reduced.
- But income particularly if you are on a pension can be severely reduced.
Basic Cost.
- Funerals can cost any amount.
- A simple cremation service and one car around £2,500.
- A burial service £5,000.
- Not just the funeral director but reception, clear up fund for bills i.e. Gas, Electricity, etc.
- If while you are working possible reduced income for a period prior for hospital treatment, visit to hospital, reduced overtime etc. i.e. family finances may well have been reduced.
When payment is required.
- Headstones, Memorial Plaques, Rose Bushes usually will not be commissioned until payment has been made this may be different if they know an insurance policy is in place.
- For cremations release of the remains usually only take place after payment.
- All funeral directors work slightly differently but because you are dealing with an event in the future it is difficult to know exactly what terms will apply to your funeral or even which funeral director will be used.
Making the Payment.
- Funeral directors will usually ask how you are funding the funeral when making arrangements.
- Funeral directors will usually wait a few weeks to allow for insurance policies to payout.
- Insurance companies will endeavour to make a payment in a few days if the policy was written in trust.
- If the family are paying from their own funds they will need to name the person to be responsible for the payment. That person will have to organise raising money from various family members who may all have different financial circumstances.
- Although funeral directors will usually conduct the service before payment. Other areas will usually not proceed until after payment.
Additional Cost.
- In addition to the cost of the funeral.
- There are additional factors.
- Any finance agreements in the deceased name would have to be settled.
- Example a car loan.
a) You may still need the car.
b) Sale price of the car may be less than outstanding debt.
- Television, household appliances with finance outstanding would have to be settled.
Reduced income.
- Remember that the basic state pension would be reduced from;
- £905 per month to £593 per month.
- A reduction of £316 per month, you will most probably need a buffer fund to help you adjust. £3792 for one year.
- Any other pension would most probably be reduced if not stopped entirely.
Loan Cost.
- £10,000 over the maximum period 5 years at a low rate of 6% would equal £193.00 per month over 5 years. 6%. Assuming the nominated person has A1 credit status. Which they would not be if a pensioner. 5 years max for personal loan.
- Most probably considerable more if via the funeral director.
Reduced Pension.
- Your State Pension has been reduced by £316 per month.
- Difference between single and married pension. If you were on two single pensions reduction would be greater.
- plus the finance payment of £193 per month = £509 reduction in income for first 5 years
- Dependent on your circumstances there may be additional state aid available but as we are dealing with an event hopefully in the long term future, it would be wise not to rely on benefits that you may qualify for now being available to you in the future.
Insurance Vs Personal Loan.
- You would have to have had a £10 per month policy running for 48 years before the total premiums equal the total cost of the loan at the lowest rate.
- Remember we are making plans for an event in the future.
- Assuming 5% inflation:
- £5000 today will need to be £8552 in 10 years
- £5000 today will need to be £13930 in 20 years
- We therefore recommend either having sufficient cover now to pay the higher cost. Or having an index linked policy. Increases with the retail price index so value of policy and funeral cost stay equal.
Total Cost.
- A minimum policy of £10,000 would be needed just to pay for the funeral and adjust to the lower income in the first 2 years.
Insurance Policy.
- A minimum policy of £10,000 would be needed just to pay for the funeral and adjust to the lower income in the first 2 years.
- 60 year old Male Non-Smoker could have a £10,000 policy to age 80 from £10 per month.
60 year old Male Non-Smoker could have a £10,000 Whole of Life policy from £20 per month.(Whole of Life policies have no end date so they will pay out whenever you die.)
Organising your estate.
- We recommend having policies written in trust.
- We strongly advise making a will.
- We have various special offers available for our clients.
All individuals needs and circumstances are different the figures given are just an indication we would recommend conducting your own research, funeral cost can be considerable higher in some areas, also bear in mind the cost are not just the funeral, but settling the estate, paying utility bills, etc. Remember at this point the remaining partner now has their funeral to consider. Interest rates are currently at a historic low, remember we could be making plans for an event many years in the future when rates may not be as low.
"The Financial Services Authority does not regulate Wills or Trusts
|
