Are pre-paid funerals and cremations vast Ponzi schemes?
Posted by EUskeptik@reddit | AskUK | View on Reddit | 98 comments
There are vast numbers of adverts on TV and social media for pre-paid funerals and cremations. Multiple companies are involved.
I like the idea of providing my family with funds to pay for my funeral arrangements and have been paying into an insurance policy for many years. It will pay out when I die and cover the cost plus a little more.
However, my insurance policy is protected. I see no such protection offered by the plethora of companies currently offering pre-paid funerals and cremations. They seem to multiply by the week.
Are these companies accumulating wealth that might disappear by the time people die, leaving their relatives having to fund the funeral or cremation? What safeguards against this are in place?
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Fuzzy_Cantaloupe6353@reddit
My great gran paid into one for 45 years, £15 a month.It was worth £375. By the time she needed it.
Open a savings account or out cash aside somewhere you'd be better off.
EUskeptik@reddit (OP)
I think that’s good advice. By the time I pop my clogs I will probably have paid more into my policy than it will pay out.
But my question is about an increasing number of funeral and cremation companies who are demanding payment up front. Where is the money going and what safeguards are in place to make sure the funeral or cremation can be delivered as promised when the time comes?
Given the recent prosecution of an undertaker for failures on a huge scale, how can we have confidence that companies demanding pre-payment are sound and trustworthy when it appears so many are springing up out of nowhere?
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PrivateFrank@reddit
This isn't quite on topic but a plan for funeral costs doesn't seem to be a good fit for insurance.
Insurance only works if there's a reasonable chance that you won't need the policy. All the people that have insurance but never need it subsidise the people that do. Home insurance will pay to rebuild your house if there is a big fire, and they can pay out hundreds of thousands because of all the people who will not have catastrophic house fires.
Nearly everyone is going to have a funeral. If the insurance company is going to pay out on every policy then each policy holder will have to pay in enough to pay out for their funeral plus the administration costs and profit margin of the insurer, which means that nobody gets back more than they put in.
Sure some people might have funerals a lot sooner, but then just have a life insurance policy to provide for funeral costs. Nearly everyone will be better off just saving up the money themselves.
mOom-moOm@reddit
Funeral Plan companies are now regulated by the FCA in an attempt to ensure minimum standards and reliability in the market. Everyone will have a different view on the FCA but having worked there and been involved with it taking over funeral plan regulation, it was a massive step in the right direction and they’re now protected by the FSCS.
The prepaid funeral will be backed by an investment product. They’ll invest your money with the intention of growing it to meet the increased cost of a funeral. The idea being that the £3k funeral you’ve picked out now will then be provided with the same arrangements and requirements you asked for even if when you die it would then cost £8k. Putting the money into a savings account won’t achieve the same thing and there’s no guarantees your family will use the money for a funeral that you’d have wanted.
ctesibius@reddit
Also make sure that the policy covers a large number of funeral directors, not just one. This is partly because it is quite likely that you will move when you retire. It’s also so that if one company gets a poor reputation locally, your family have a choice. This applies even if the funeral director is huge, eg the Coop, because any company can go down-hill in one location.
EUskeptik@reddit (OP)
!answer
Thanks to everyone who replied. This reply best answered the questions I posed, hence “!answer”.
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Fuzzy_Cantaloupe6353@reddit
The good ones will offer payment plans after the fact with out all the BS in my experience.
The ones who try to sell you something before even talking to you about your loved one aren't to be trusted regardless.
Save and avoid the schemes, talk to your elderly and hopefully the schemes will disappear eventually or at least dwindle in number.
Day time TV had alot to answer for it also explains why some old people are super grumpy!?
EUskeptik@reddit (OP)
I’ll admit to grumpy, without the ‘super’! 😂
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Fuzzy_Cantaloupe6353@reddit
I did say some!
I was watching old murder mystery reruns with my grandparents and every advert was your going to die... you're going to die really soon...are you sure your not dead yet??...why aren't you dead yet!?
Id be pretty pissed and grumpy to honestly 🤣🤣
masha1901@reddit
Agreed, my beloved husband had been paying his insurance for 35 years when he died. One of those death benefits ones. £20 a month, you know what the payout was? It was £1200. However if you cancel the insurance then you get nothing so he didn't.
I have told everyone I know not to pay into one, and to put it into savings instead. They are definitely a scam. I don't know about the prepayment ones but I have a feeling they aren't great either.
Splodge89@reddit
Sorry for your loss. And yes, the insurances are a scam, and they lock you in as, as you rightly pointed out, you don’t want to stop paying as you get zero back out.
frankchester@reddit
That’s absolutely criminal. How is that allowed?
asymmetricears@reddit
I'd guess this is based on it being an insurance scheme rather than a savings scheme. Imagine I pay £500 a year for car insurance for 20 years, I have an accident, and I only get paid out 3.5k.
Even with a savings scheme, it's reasonable to get less than was paid in due to admin costs.
benthelampy@reddit
Used to be, now regulated by the FCA so should be much more useful to budget
Vampirero@reddit
Ok, so my father recently died.
I find the vast number of "Pure Cremation" adverts to be exploitative and a bit disgusting. Everyone should get the type of funeral they feel is best for them. Funerals are for the living. What do you feel is best for you and your family?
EUskeptik@reddit (OP)
To be honest I find pure cremation attractive. I have been to far too many expensive funerals that have turned into hugely stressful social events. I don’t want to wish that on those who survive me.
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Vampirero@reddit
And that's great if that's what you want and that's what the dead person wanted.
I just find the "don't be a burden on your surviving relatives" thing really uncomfortable. Surely it should be up to your surviving relatives to decide how to celebrate you after you are gone?
Jickklaus@reddit
The family get told the day of the cremation - my mum, her brothers, and their mum all went out for dinner on the day of my grandads cremation.
They got the ashes a few days later. They could then decide if they wanted to hold a wake-like event. They decided they didn't want to.
They felt more in control of their decisions as they didn't have to plan a funeral. It wasn't a burden thing, it was a relief for them as they had choices.
I think the being a burden thing isn't a nice way to frame the situation - I can appreciate that use of language and have heard it used many times over the year. But I don't think it's the healthiest way of thinking about the issue. Talk to family. Give them a choice. Empower them who remain living to make the decisions they want.
EUskeptik@reddit (OP)
They can celebrate how they like. I just don’t want to leave them the burden of funding my funeral.
If they wish to celebrate on a tropical island, good luck to them! 😂
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Vampirero@reddit
I think we basically agree😊 I just think they can use any money I leave to fund my funeral, and they shouldn't expect any inheritance.
My dad's money went on his end of life care, and I expect the same to happen with my mother. I want her to enjoy the money she earned, not save it for me or my siblings. I love her, and I want her to enjoy her money!
No_Factor_1269@reddit
Thats nice for your family but a lot of people do actually want to plan ahead and pass money on to their children, without creating a funeral headache for a grieving family. Both povs are fine just different.
Splodge89@reddit
I’ve never quite understood the “leave massive inheritance” thing. Surely, if you really wanted that money to go to certain people, especially for certain things, you’d give it while you’re alive - so you can see them enjoy it - and they’re also less likely to piss it up a wall…
No_Factor_1269@reddit
Its more about building some generational wealth for my family than spunking it
Splodge89@reddit
Exactly. There’s a chance they’ll spunk it once you’ve gone if you leave it until then. Pay off their mortgages or car loans instead.
No_Factor_1269@reddit
Well you never know how much youll need/want or how long youll live. Inheritance tax also kicks in seven years before you die.
Splodge89@reddit
And those are all reasons to give a chunk away long before you die.
Besides, IHT isn’t an issue for the vast, vast majority of people. Indeed, more people are likely to end up spending all their net worth on care fees than are liable for paying IHT…
InternationalRide5@reddit
They don't have the burden of funding a funeral though.
Funeral will be paid out of the deceased person's assets, or if they don't have assets then the relatives can ask the council for a public health funeral which is free - although councils will try to persuade family to pay for it.
Helicreature@reddit
I completely agree. They seem designed to guilt people into accepting being carried off and returned in a box so they can ‘give the money to the grandkids’. Absolutely fine if that’s what the person really wants but I think the ads are really sly.
Jickklaus@reddit
My grandad passed a couple of years ago, and he had a pure cremation plan. Actually? We all liked it more than we thought we would. My mum, her brothers, and their mum all went out for lunch together at the day of the cremation (they don't give a specific time, just a window). It allowed them to grieve how they wanted - no needing to plan a funeral. No needing to be visible to family or friends. I know people are kind and want to give nice words to the family but my family didn't want to have to deal with that. This helped them do so.
My parents have now set up pure cremation plans themselves.
Billbrown1982@reddit
I used to agree with you but after losing 1 mother and 3 aunts over the last 3 years that all had pure cremations vs one uncle that had a “proper” funeral, I am going to make sure there’s a funeral option for me at the end.
Find myself missing that closure that you can get from a funeral. Hard to explain but I now truly understand that a funeral is not for you, it’s for those you leave behind.
EUskeptik@reddit (OP)
My personal view is that I wish to be cremated after death with minimal fuss and expense.
If anyone I leave behind wants some kind of a ‘do’ to celebrate my life - or its passing - that is entirely up to them. Whatever they decide, there will be money in my will.for them.
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Billbrown1982@reddit
You are totally allowed to have that view and make that decision obviously.
I can only make decisions based on my own opinions. When my mum was cremated I kept planning to organise a drink in her honour, but for one reason or another it just never happened until realistically it was too late.
I know if there had been a proper funeral service it would have occurred more naturally. People generally will get a day off for a funeral, not so much for a drink down the pub.
Ruu2D2@reddit
My sister had covid funeral it was awful. My husband also struggle as he loved her
Both my husband family gone for either coope or pure cremation. He have express that he want some closure and find funeral healing . But both sides are stuck on believe they doing right thing ( he only child )
terryjuicelawson@reddit
I suppose nothing stopping them having a fancy celebration of their own if the family wish, the relative will be dead. People can still have their own wishes, the ones where they offer the barest bones (as it were) cremations seem like the least exploitative of the lot and something a lot of people do genuinely desire.
Alive_Forever_9541@reddit
Why is everyone talking about what sounds like subscriptions (pay every month)?
The question was pre-paid.
I only have one experience and my mother pre-paid hers years in advance. It was 100% paid with no ongoing fees.
EUskeptik@reddit (OP)
I didn’t differentiate between pre-paid in one go or by monthly payments.
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InternationalRide5@reddit
The prepaid funerals (which sometimes you can pay in instalments over one or two years) are completely different from the "over 50s life assurance" which is guaranteed to pay out (usually a fairly small, and decreasing with inflation in real terms) amount when you die, regardless of how little or how much you've paid in every month.
The prepaid funeral is a fixed price funeral, costs a bit more than a funeral now, but is guaranteed (as much as anything is) to meet the cost of a similar funeral in 10-20-40 years time.
If you think you have a significantly less than normal life expectancy, because the life assurance policies don't ask any medical questions you can really cash in if you snuff it within a few years when you haven't paid in much premium compared to the lump sum payout. But if you start paying in your 50s and last into your 80s (as many people will) you will at some point have paid in more than you will ever get out.
Weatherbeaster1993@reddit
I am a caretaker for my aunt and even before I started taking care of her she had planned her funeral and paid for it here with a local funeral home. Quite frankly I appreciate that because when the time comes, that’s just one less thing I’m gonna have to deal with, however, doing it on some kind of TV advertisement which I’ve never seen and I’m US based I think is fucking crazy but if done correctly with a legit company like a local funeral home I actually think it’s something that is helpful to your loved ones that you leave behind
FreeBogwoppits@reddit
My mother had a "funeral saving scheme" that she realised was worthless. She stopped paying in after 20 years and accepted it as sunk cost.
She pre paid (one off payment) and pre planned her funeral with the Co-op in 2012. She died in 2026. They fully honoured it, but they did the very least they could and we had no grounds to object as it was "pre-planned by your mother".
Biggest problems were:
Mum was a practicing and church going CofE Christian. She'd asked for a Christian minister and service. Coop gave her a Spiritualist funeral ministered by a Reiki Healer as "he is a Christian".
The coffin was cardboard, but she'd paid for solid wood.
They gave the charity collection to the wrong charity. They said they'd never heard of the one she'd named, so gave it to the local hospital instead. The one she named was Marie Curie.
AggressiveAd5248@reddit
How did they get away with breaking all of those terms? Surely there’s breach of contract there?
FreeBogwoppits@reddit
The contract was between mum and the Co-op. Mum's dead, so I don't know if it could be legally challenged by us or not.
I've not seen the contract, only the funeral plan. I'd expect there's a clause in the contract that says they have the right to make changes if need be.
We were frozen out of all the arrangements as "your mother made the funeral plan".
I did strongly challenge the spiritualist service, especially as mum's own vicar stepped in and offered to do it, by Co-op insisted this Reiki bloke did fulfill their obligation. Christian Spiritualism is still Christianity.
AggressiveAd5248@reddit
Might be worth a punt on r/legaladviceuk, I’ve got no legal training but they certainly do!
Silver_West_4950@reddit
Thanks for the warning. I was seriously thinking about using the Co-Op.
Effective_Soup7783@reddit
It likely depends on your local branch. I’ve used Coop a few times and they were excellent for us, but our local one had a great reputation. As in all things, ask around for recommendations.
Ruu2D2@reddit
God my husband family all got planes with coope
owningxylophone@reddit
They gave her a cardboard coffin?!? When we did my dad’s funeral through Co-Op (would not recommend) the cardboard coffin option was more expensive than the standard wooden coffin.
ctesibius@reddit
Sometimes a plain cardboard coffin is cheaper than wood, while one with a custom vinyl covering is more expensive.
EUskeptik@reddit (OP)
Goodness me!
And that was the Co-Op! 😳
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ctesibius@reddit
I’m a funeral officiant. The Coop don’t have a great reputation where I am, but this is probably a problem with one branch (which can have several high-street offices). It’s best to ask friends in the area for their experience of any company that you are considering.
Not providing a Christian officiant is bizarre. I’m a lay preacher (ie I do church services when a minister is not available). For funerals I explain what I am, and check that they are ok with this - otherwise I’d refer them back. So far I’ve only had that once, but that was more a matter of my persuading the family that the deceased lady would probably have preferred her RC priest.
Leithia24@reddit
Co-op made serious errors in my son's funeral planning. It was unexpected so no preplans in place. They made us have a service early because the only crematorium time available was early in the day...then didn't book the crematorium...
Avoid them like the plague and look for a local independent instead.
Kyber92@reddit
Jesus Christ on a bike, that's despicable
Prefect_99@reddit
I think the best strategy is for the funeralee to open a joint account with someone they trust and pay the money into that. The other person can then take out the cash as needed with minimal fuss when the time comes.
charlies_got_a_gat@reddit
That isn't needed, a dead person can pay for their own funeral costs, even before the estate is issued, so long as they have enough money in their account, death certificate and Funeral invoice. Band Depending I guess
https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/?utm_source=chatgpt.com
"Some banks and building societies will release quite large amounts without the need for probate or letters of administration. Also some banks and building societies will release money needed to pay for a funeral, probate fees and inheritance tax but nothing else until you have been granted probate or letters of administration."
Prefect_99@reddit
Yes but all of that is hassle. If you have a joint account you can just walk in, no questions and take the cash out.
charlies_got_a_gat@reddit
It wasn't any hassle for us, funeral director just invoiced the bank. Joint accounts have their own downsides too. The "Other person" could get divorced, sued, steal the money or even die at the same time as the first person. Not much advantage to just giving the money to the other person.
I was just saying, none of this is necessary, no joint accounts, no plans, no prepayments. So long as you don't die broke.
Splodge89@reddit
The joint account thing seems a daft idea to be honest. Like you say, the other person could bugger off with it, die early, whatever. The thing I’d like to add to the list is that monies in accounts in someone else’s name would also come under the assets of that someone else. If that someone else needs means tested benefits or goes bankrupt that money will be taken into account.
EUskeptik@reddit (OP)
Excellent idea. 👍
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repair-it@reddit
I believe you are right, as I understand it, the costs of a funeral come out of the estate that a person leaves, so the relatives are not liable to pay a penny of it.
I have left enough in life policies to cover my funeral and a good celebration of my life.
scrambledOrFried1234@reddit
Open a joint savings account with the person who’s likely going to be arranging your funeral. Hell of a lot simpler, transparent and more certain.
Tuarangi@reddit
My uncle had one but I think it might have been with a small local firm and a pre-paid or savings plan, but they were actually really good. He'd paid for quite a grand funeral with lots of guests etc which wasn't needed, he'd become quite isolated by the end and they allowed us to downsize to a very modest thing including the burial and refunded us a balance as well
Resident_Ebb_9354@reddit
My mum had a pure cremation one and it was a very good service. But she had almost predicted her own death so it was only a couple of years after she’d sorted it out when she died. I enquired with them, I’m 39 and can’t help but think I’d be wasting my money paying now for something that might not happen for another 40yrs…there’s got to be a catch.
UnusualInstruction51@reddit
No catch, they can be a good value option, but you'd be trusting that they'd still be in business in 40 years and that how funerals are carried out hasn't completely changed during that time. I wouldn't buy one unless you think you're within 10 years of dying.
UnusualInstruction51@reddit
Not any more as the industry is now regulated by the FCA. The Funeral Plan operator must ring-fence any money paid for a funeral plan and will need to invest that in a sensible manner in order to be able to pay out the plan when necessary. Do look carefully at what the plan offers for the funeral itself, as many may have extra charges that may not have been taken into consideration at the time of taking the plan out. Eg, it might not include any funeral cars or collection of the body if it is not at a hospital. There may also be restrictions as to where the funeral can be held.
Broccoli--Enthusiast@reddit
My local place will let you book and pay for the funeral in full well ahead of time
My grandfather had his paid a decade in advance , but I guess that's a gamble of the part of the place
CatsCoffeeCurls@reddit
Former funeral director: they're excellent and take a lot of stress away from your survivors who would otherwise need to fund and plan at the last second (and paying a massive premium for the privilege), but you need to do your legwork to make sure your money is properly invested and protected by all the regulations and whatnots. Those who wanted to go this route to have something in place would be wise to stick with the big names in the industry - then make sure the contractual terms are safe somewhere to push back against being downgraded on the casket, etc. Funeral merchandise should have already been selected at the point of taking out a plan. Make sure you have your own burial plot or columbarium niche sorted if you're going that route, too. The gravedigger fees are rarely included and are usually paid directly to a council for public cemetery space. This can wait until the end though. The bulk of the costs are covered in the plan and it makes good sense to lock the price now with cost of living surely tripling the price in 30 years.
EUskeptik@reddit (OP)
I’d like to thank everyone who replied. I was touched by such an excellent response.
Reddit at its very best! 😁👍
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terryjuicelawson@reddit
The ones that relentlessly advertise on daytime TV talking about "peace of mind" or people gleefully telling their neighbour about guaranteed cash payouts for loved ones are basically preying on old people who are financially illiterate. Whether they care is another matter, as they will die under the impression their side of things is sorted. I would imagine almost all are worse than putting money aside and investing it properly alongside a decent life insurance scheme unless you happen to die six months after it was taken out.
moderatlyinterested@reddit
I believe they used to be, but think they have now become regulated?
My Mum and Dad have one, all very straightforward when I came time to use it for my Dad.
Itchy-Ad4421@reddit
I believe it’s the FSCS that they fall under
EUskeptik@reddit (OP)
If that’s the same FSCS that “regulated” the funeral directors recently prosecuted for leaving bodies unburied, I would not be too confident.
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Itchy-Ad4421@reddit
Your original post is about the financial side of it.
Funeral directors (so far as I know) aren’t regulated to do their ‘funeral directoring’ (they can be but it’s voluntary I believe) - however i think it’s due to fall under the DoHSC soon.
The FSCS is the financial services compensation scheme. They are there to insure people’s money is protected / compensated. They’re the same people that essentially insure your savings in bank account up to £120k
Suskita@reddit
Only if they go out of business. If they are still trading then I think any complaint would go to the ombudsman.
srmarmalade@reddit
My father paid into one of the monthly ones, they paid out without issue and it was helpful to have and in this instance I suspect he paid in less than they paid out but on the whole they go on the basis of most people paying in a few years before they die and then continuing to pay in or they lose the benefit. It's just a basic life insurance policy with a small payout (in fact in our case while it was markted as a funeral plan, they did pay out cash and let us do whatever with it).
The one thing that probably does work in their favour is that the money can be released easily enough, money put in a regular savings account might be tied up until well after the funeral with probate etc.
tfm992@reddit
This is one where local funeral directors will generally do better than corporate ones.
My grandparents had theirs purchased through a local chain several years before, there was an underlying investment product but the FD took the risk on the result of that investment, they paid probably slightly more than the funeral would have been when it was paid, but less than when the funerals actually took place.
These are FCA regulated products with stringent requirements and are also regulated by FSCS. I believe an insurer has to be involved somewhere along the line meaning the FD is likely subject to external audit on the financials.
Psychological-Bag272@reddit
My step aunty has one set up and prepaid but she got no nearby relative. We aren't close to her and barely havr any contact. I think it suits people in her situation to have a prepaid funeral.
I personally would just make sure there's money put aside for the living to sort it. When my dad died, we just paid for the funeral out of his estate. I remember telling my husband to organise my funeral as cheap as possible, cardboard coffin if he has to. Money is better spent else where.
EUskeptik@reddit (OP)
My thoughts exactly. I attended two funerals in Jamaica - my wife’s parents died four years apart - and I was absolutely astounded by the cost of coffins, plots and burials. It made me think hard about what I would like for my own funeral: Less is more.
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TobblyWobbly@reddit
My parents did this. They prepaid for a certain level of funeral each about fifteen or twenty years ago. Then there was the big scandal, and some sort of regulation was brought in. Their plans transferred to some other company.
We've just had to activate my Dad's plan. It's all a bit confusing, tbh. The old paperwork says he gets certain services and a certain coffin. The funeral director, who they picked, says that their money was invested into a sort of trust fund. We tell them what we want, they bill the other company, and the company gives them the amount in the fund. This may mean either an additional payment from us or a small refund.
He also said that we had to call the company to tell them that we were going ahead with using their services, and to give them the date of the funeral, because some companies use the date of death as the cutoff for the investment and others use the date of the funeral. The company had no idea what we were talking about.
So, we should get at least most of the costs covered. Possibly all. I'm not overly impressed with this guy anyway.
EUskeptik@reddit (OP)
Thanks for this, a salutary lesson!
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sock_cooker@reddit
My mum had a pre-paid funeral with a life assurance. She paid a standing order every year and after she died, pretty much everything was all set, I just had to choose the hymns and flowers. I'm really glad she did.
broken-runner-26@reddit
Mother in law had a coop prepay. Funeral director insisted they didn't do coop funerals anymore. A visit from several large male members of the family changed their minds.
EUskeptik@reddit (OP)
That’s so sad to hear. 😢
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Breaking-Dad-@reddit
My mum died recently and she had a plan to cover funeral costs. Pretty sure she'd just paid it once though, it wasn't an ongoing direct debit. On the one hand it was quite easy to do, and the cost of almost everything was covered (except flowers, orders of service) and the funeral director handled it all.
The stupid thing is, she had enough money in the bank to pay for her funeral (and I think she always did) so she could have left it to us. I guess she got to choose the coffin.
To answer your question I believe they are regulated by the FCA so you are protected.
Dapper-Lab-9285@reddit
Some people do that so they can plan their own funeral. Did She have the coffin and any readings she wanted picked?
Breaking-Dad-@reddit
She had picked the coffin, but mainly it was because she didn't want us to worry about anything. She wanted her affairs in order so to speak, which put her mind at rest, so not a problem. But it was pretty standard stuff and we still had to decide on hymns, readings etc.
Fellowes321@reddit
That depends on the people providing it. A blanket statement about all providers is not likely to be true for all of them.
A recent funeral I attended for a relative was through a coop plan. The widow was looked after and one of the guys made a point of checking in on her and taking his time when asking how she wanted the service to run. When she first visited the office to get things in motion, they made a point of saying that her husband had taken care of everything, she had nothing extra to worry about and that the day would run as she wanted.
gazchap@reddit
Yeah, when my Mum died last year, she had a prepaid thing set up with Co-op funeralcare. From what my brother told me (it was him that dealt with the ins and outs of most of it) it was very straightforward. There were a few "upsells" available but he wasn't pressured into it or anything.
Fellowes321@reddit
I seem to remember them asking whether they wanted to pay for a notice in the local paper but they also suggested not to because they've had people show up to funerals and wakes for free food or to check for the wealth of the deceased. The only extra they asked about was the booklet with the hymns and service and flowers beyond which were already sorted. The guy who visited also suggested shopping around fo flowers and if necessary, they would pick the flowers up for them and for no payment.
gazchap@reddit
Yeah, that sounds very similar to what we experienced. I think the upsells were for a photo slideshow to be shown on the TV screens at the crematorium, "upgraded" flowers (as you say, over and above what was included) etc.
Cult-Film-Fan-999@reddit
https://www.bbc.co.uk/news/articles/cnvggm1l39mo
There have been some that were fraudulent and collapsed.
https://www.fca.org.uk/news/press-releases/fca-regulation-boosts-consumer-protection-funeral-plans-market
This resulted legislation allowing the FCA to regulate them. As such, regulated ones should be safe.
But I'm of the opinion they're a waste of money.
DukeofMemeborough@reddit
My understanding is that your funeral expenses can be paid directly from your estate and banks will release money to your executor(s) for this purpose. You don’t need any special provisions in your will in order to do this (as far as I know). If you want to provide money for your funeral, put it in a savings account and advise your next of kin which bank holds it. Have a separate discussion about any specific wishes that you have for your funeral.
NecroVelcro@reddit
I started paying into one about five years ago. The company's application for authorisation for authorisation was rejected by the Financial Conduct Authority about two years later. I not only lost my cover but got less than half the money I'd paid in back.
Itchy-Ad4421@reddit
If you pay upfront for a funeral with say Co-op or someone like that then they’re usually protected so if they go bust or anything it’ll be protected.
L-0-T-H-0-S@reddit
If you like the idea of covering your own funeral expenses while still alive - put the provision alside yourself and make sure your requirements are known. You don't have to pay a 3rd party - just put the cash aside. If your savings grow or you manage to arrange a low-cost funeral (e.g., direct cremation), the remaining money stays with your estate for beneficiaries and you get the send off you wanted.
lovelight@reddit
My mum did pay ahead for everything, although not through a scheme. It was a relief to be honest although the funeral directors did try to upsell us all the time. The other useful thing she did was take an order or service from a friend’s funeral and write in what she wanted so we knew exactly the hymns and readings and where she wanted them.
Splodge89@reddit
Basically, they expect you to pay for years, perhaps decades, and in that time pay far more in than your funeral costs. Even the insurances which are proper products are also shit when you actually look at them and do the maths - sometimes worse. The premiums increase with age, to the point that they’re unaffordable - but you keep paying as you want to be covered. If you cancel it, every penny you’ve paid disappears into a poof of nothing.
Add up how much your premium has cost you over the years. It will be more than your cover amount. You could have just paid that money into a savings account and leave a good chuck of money to your loved ones - and stopped paying into it when it’s up to the right amount! It won’t disappear and won’t go anywhere. Indeed, in the right account it will actually increase in value with no input from you (interest)
EUskeptik@reddit (OP)
Valid points. I didn’t expect to live as long as I have. 😂
My payments have stayed the same. The payout has also stayed the same.
But my question isn’t about insurance, it’s about pre-paid funerals and cremations.
-oo-
Basic-Pangolin553@reddit
Avoid. They are the type of scheme that will dissappear with all your money.
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