There are many things to consider when taking out a prepaid funeral plan, and we understand just how important it is to provide you with as much information as we can to support you in your decision. Our aim is to make choosing a prepaid funeral plan as stress free as we can. In this blog we’ll discuss paying for your funeral plan in more detail and inform you of the new regulations coming in to effect this summer…
Taking out a prepaid funeral plan
Pre-paid funeral plans provide a secure and effective way to plan ahead for your funeral. They serve two main functions – to plan out your funeral and pay for our funeral director services at today’s prices. Effectively freezing the cost of our services included in your plan against future price rises, whilst helping to reduce some of the stress your loved ones experience after you’ve gone.
The Independent Way plan
For anyone choosing to take out a funeral plan with Dillamore, we provide a bespoke funeral plan called Independent Way. This plan is provided by Golden Charter, one of the UK’s largest funeral plan providers,¹ and is a fully flexible plan that we scale around your individual needs and wishes. This means that the choices you make for your funeral, the overall amount you pay, and the payment plan we set up for you, is completely tailored to you. Our aim is to support you in arranging the funeral of your wishes, whilst ensuring it works with your budget.
How do I pay for a prepaid funeral plan?
Whether you have already set aside money for your funeral or would like to spread the cost over a period of time, a Golden Charter funeral plan can offer payment plans to suit most budgets. This can help you to manage the cost of your funeral and reduce the financial burden you may experience.
- Single payment option –You can make a one-off single payment for immediate cover.
- 12 monthly payment option – If you would prefer to spread the cost, you can pay over 12 monthly payments by Direct Debit at no extra charge. You will be fully covered once all payments are made.
- Instalment payment option – For a lower monthly payment, you can also choose to spread the cost of your plan between two and 15 years.² This option includes the added benefit of the Golden Charter Pledge. This ensures that if you die at any time after you have made 12 payments, the funeral director services included in your plan will be provided. An instalment charge is included based on your age and the term you select, and is included in the overall cost of your funeral plan.
Some things to consider when taking out a prepaid funeral plan…
- Consider how your financial circumstances will change in the future and whether your funeral plan will support these changes. It’s important to choose a plan that won’t cause you any long term financial strain
- Depending on which payment option you choose, the overall amount you pay for your funeral may differ. For example, paying for your funeral in one lump sum will work out cheaper than paying monthly over a long period of time
- Whilst the majority of funeral costs can be included in your plan, certain costs may be excluded. Ask your plan provider for clarity on this, consider how any additional costs will be paid for and set aside money if need be
- Inform your loved ones about your funeral plan and any provisions you have in place. Tell them which funeral director you are using, who the plan provider is, what is included within the plan, and how they activate the plan. Having these conversations now will ease some of the stress your loved ones will experience following your death.
• Ask your plan provider about whether there are any financial implications of making changes to the plan, such as if you move house and want to use a different funeral director.
Is my money safe?
It’s important to do your research when taking out a prepaid funeral plan as different companies will take care of your money in a different ways. If you take out a prepaid funeral plan with us, your money will be taken care of by Golden Charter, who provide Dillamore’s funeral plans.
Your money will be transferred and held in the Golden Charter Trust after Golden Charter deduct their arrangement fee. The Golden Charter Trust is operated by a Board of Trustees, completely independent of Golden Charter. Their role is to hold your payments and ensure that the funeral director services in your plan can be paid for at the time they are required – however far into the future that may be. If you would like further information regarding the Trust, please contact Golden Charter or visit www.goldenchartertrust.co.uk.
To discuss this, or any other aspect of prepaid funeral plan payments, reach out to us and we’ll be happy to answer any questions you have. You can call us on 01525 372210 or email us via our contact form. We are here to support you in any way we can.
For anyone seeking more information on taking out a funeral plan and paying for your funeral in advance, we have a downloadable guide to prepaid funeral plans which will provide you with extensive information on the Independent Way plan.
1. Based on Golden Charter analysis and independent research of funeral plan market size as at May 2024.
2. For the instalment payment option, you must be aged under 78 at the start date of your plan and pay the total cost by your 80th birthday. Please refer to the Key Features document for eligibility of each payment option.
