Death is expensive, yet no one really wants to plan for it. However, the average cost of a traditional burial in the UK is currently £4,257, while a funeral with cremation is approximately £3,311; the exact cost of both alternatives vary depending on the funeral location and requirements (Royal London National Funeral Cost Index Report, 2017). It is for this reason that pre-planning your funeral could be a huge help for your family.
1. Leave Savings To Cover Your Funeral
If you can afford it, you can leave enough savings to cover your funeral. You’ll just have to inform both your solicitor and your next of kind that you’ve left the money for the funeral and write your pre-planed funeral on your will.
The cost of a funeral is an allowance expense for inheritance tax purposes. Therefore, the expenses from the funeral can be deducted from the value of the estate of that deceased person for inheritance tax purposes. However, you will have to take into account the cost of funerals. Your savings may not cover the cost of your funeral if the prices have gone up higher than what you expected.
2. Take Whole Of Life Insurance To Cover The Funeral Costs
Whole of Life Insurance is the only type of life insurance policy that will guarantee to pay a lump sum on your death. By putting the Whole of Life Insurance into a trust you can provide a lump sump of money to pay for your funeral and avoid the huge £40 Inheritance tax.
Unlike a savings account, the monthly payments and the sum insured payable on death are subject to review and change to accommodate fluctuations on investment.
3. Through A Prepaid Funeral Plan
As its name implies, it enables you to plan each detail for your funeral for today’s costs.
Planning ahead makes financial sense because you pay for today’s prices. After all, the price of UK funerals has already more than doubled since 2004.
Here’s How You Do It
Simply click “Get My Free Quotes”. You will then have direct access to BusyBeeLifeInsurance.co.uk, one of the UK’s leading life insurance sites for mums.
