Why You Should Understand Your Funeral Plan’s Rules

Posted by on Apr 8, 2014 in Pre-Paid Funeral | Comments Off on Why You Should Understand Your Funeral Plan’s Rules

Why You Should Understand Your Funeral Plan’s Rules
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There must have been a major misunderstanding by either or both parties involved when Josephine Edwardes began her funeral plan with the Co-operative, paying in £800 way back in 1988. This story was recently highlighted in the Sunday Times.

She thought that all of her funeral costs would be covered after her death. The Co-op recently told her family that the plan would pay out the £800 which is the amount she paid originally.

Adjusted for inflation, the £800 paid to the Co-operative in 1988 would be worth around £2000 today. There would still be insufficient funds to cover the cost of a funeral, with a cremation costing somewhere between £3,500 and £4,000 in 2014.

Her family thought that the purchase of the policy would mean that no one would be burdened with large bills after she died.

If, as it would appear, the lady purchased an investment policy, it has failed miserably over the years or she had placed money in a Bond that was not designed to increase in value, just to keep the money so it could be put towards a funeral when it was required.

This situation highlights the need for individuals to understand what a funeral plan actually does and what it will achieve. While it is good that she has put aside £800 towards a funeral, this still leaves her family between £2000 and £3000 short for the final invoice.

We, at FuneralPlanAadvice.com, suggest that potential purchasers look for the information which specifies what will happen to your money. A funeral plan should be designed to guarantee the funeral director’s fees as well as making a contribution that you would expect to cover most if not all of the disbursements associated with a cremation.

A burial will always cost more because you have to purchase the plot of land for the grave, but if you know what a plot of land will cost, you can purchase this in advance or add the money to your funeral plan so the right sum is available at the right time.

We do not know the specific details of this purchase in 1988, so we cannot say which party is right and which is not. This is not to say the Co-operative did anything wrong; it may be that the plan details expected by the family now in 2014, 26 years later, were not the same as the plan that was sold to the lady in question.

The lady may have forgotten what she purchased in 1988, especially if she was remembering the plan she purchased all those years ago. The specifics of the plan will have been detailed in writing to the lady. At the time of writing we do not know the full outcome of this situation.

 

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