Whenever many people make a financial plan, they tend to do so around life objectives. This could be purchasing a house, accumulating wealth, or retiring comfortably. However, the thing that is most likely left out is the expense of dying, especially the funeral cost. This oversight can put families in a vulnerable financial position at an already tough time.
Here is why funeral planning should be a part of every serious financial plan.
Funeral Expenses Are a Foreseen Expense
When compared to unforeseen hospital bills or market changes, funeral expenditures are certain. A simple funeral is likely to cost around£3,000-5,000. A burial or more elaborate funeral service may cost up to £7,000.
Unless it is incorporated in your financing plan, your family might have to dip into savings, borrow, or even have to crowdfund to meet it. This known cost can and should be budgeted just as you would budget to pay a mortgage or send children to school. In other words, funeral plans save families from last-minute financial panic.
Delays in Probate Can Restrict Access to Funds Immediately
In case of a death, the estate is normally required to pass through the probate stage after which the assets can be distributed. This takes months and in the meantime the family might not be able to access the deceased money so as to meet the funeral costs.
Adding a funeral plan to your financial planning means that you pay some of the costs of a funeral in advance through a separate provision. This is to take care of basic bills before probate can be cleared.
Funeral plans can freeze up current prices
The cost of the funeral increases annually due to inflation, the increase in price of cremation/ burial, and the cost of the service. When you decide to invest in a prepaid funeral plan, you are locking in the current rates today, saving your family from future increases in price.
Financially, this is the same as locking your mortgage rate. You secure one major future expense and do not subject your family to market fluctuations.
It Prevents Emotional Spending
Grief may obscure reasoning. Without any specific plan, families are likely to experience an element of pressure to do more for their loved one. Consequently, they might overspend on various services like highly luxurious/costly coffins or unnecessary extras due to a sense of guilt.
When funeral planning is part of your financial plan, it is easier to make sure that your loved ones do not have to make any emotional or rushed requests regarding your wishes.
It Supplements Estate and Insurance Planning
You might already have a will, life insurance, or even savings that can be used to cover your funeral. Unfortunately, they do not necessarily achieve immediate liquidity to bridge the gap in the costs of the funeral process. Claims on life insurance can be time-consuming, and savings may not be readily available.
A funeral plan seals this gap. It can complement your larger financial strategies to offer you ongoing and purpose-specific protection.
The Bottom Line
Funeral planning is not about death. It is about being smart and future-oriented. Incorporating it into your financial plan safeguards your loved ones, avoids stress, and makes sure that your legacy is handled with composure and transparency.
