Incredible Funeral Plan Vs Funeral Cover 2022. Funeral cover can also potentially be used as a type of inheritance, but there are tax implications of passing money on from funeral insurance to relatives, friends, or even charities. Funeral cover on the other hand, pays out a lump sum to your family in the event of your death, with the objective of covering the costs of your funeral.
Reassured has written this life insurance vs funeral plan guide to help you decide which is the better option for you and your family. Funeral insurance is easy to set up. It is almost similar to a prepaid funeral plan;
Funeral Cover On The Other Hand, Pays Out A Lump Sum To Your Family In The Event Of Your Death, With The Objective Of Covering The Costs Of Your Funeral.
According to sunlife’s cost of dying report 2022, the average cost of a funeral in the uk is £8,864**. Funeral cover differs from a burial society membership because it is more trustworthy. It all depends on your reason for buying.
However, Whatever Plan You Choose, It’s Unlikely That The Following Will Be Included Or Covered By The Cost Of Your Funeral Plan:
With funeral costs rising each year, this can be an easy way of keeping the cost of your funeral as affordable as possible. The main characteristics of a funeral plan are as follows: As you’re able to plan and arrange your funeral in advance with your funeral provider which can help to relieve some of the stress your family will be under at what is always a difficult time.
The Risk You Run With An Over 50S Plan Is That Funeral Costs Could Outstrip The Payout, Meaning That Your Passing Still.
A burial plot cost about $2,000, so the average funeral cost could be over $10,000. The difference in cover amounts relates to the. Similar to the prepaid funeral plan, it also locks in the price service to protect against inflation.
A Growing Trend Has Been For The Insurance Companies To Include.
In contrast, a bare prepaid funeral is a smarter alternative to funeral insurance. The application process is simple with no medicals or blood needed. A funeral plan can only be redeemed in the event of the death of the holder and the money goes straight to the specified funeral director to ensure it is used to cover funeral costs.
The Difference In Cover Amounts Relates To The Benefit Structure Of Each.
The exact package will differ depending on your budget, and which funeral plan provider or funeral director you hire. For example, a funeral policy may provide r20 000 worth of cover, whereas a life insurance policy can offer, for instance, r250 000 worth of cover. Funeral plans allow you to cover yourself, spouse, children and extended family and life cover is only for the policyholder, or for ease of reference yourself.