Talking about your funeral may not be something you enjoy discussing, but from a financial perspective, it’s like talking about taxes or retirement and it’s important. Also, not talking about your funeral may have a negative impact on your loved ones if the worst happens and you’re unable to help contribute. They will be forced to cover the costs of the entire event and may have to sacrifice specifics if they’re unable to afford your wishes.
Making a financial plan for your funeral is a sign of responsibility and awareness towards your loved ones more than anything else. Right now in the UK, the cost of a funeral is on average around £4,000.
Basics of funeral expenses
This process involves asking yourself several questions regarding the specifics of your funeral. For instance, the price of a funeral will decrease if you decide to go with “direct cremation” rather than a burial.
Direct cremation means that the body is cremated with no viewing or ceremony. Ashes can be requested – for an additional charge in most cases – and family members can arrange a service at home which will also reduce costs. The overall cost of a direct cremation is somewhere around £1,000 to £1,600
If people are interested in arranging a burial, prices will rise, mainly for all the processes required. If it is a simple service with nothing too fancy, prices range between the £4,000 – £4,300. A ceremony with cremation instead of burial will reduce the cost by about £1,000.
Include this in a budget
Whenever you’re creating a budget or financial plan, then including a regular contribution towards a funeral will allow you to have all the money you need to have the perfect send-off, exactly how you want. Once you’ve achieved your target sum, then you’ll be in the position to continue to contribute for someone to inherit or have some additional finances to spend however you want.
Explore prepay funeral options
The market shows that many funeral homes are offering this method of payment. It is similar to saving, but the money will pay for your funeral while you are alive. This will reduce the burden that an unexpected death can leave on family members. Some of them will even let you pay the whole thing ahead so the price of the funeral will be the same even if the actual funeral takes place many years later. A big step back is that in the event of you relocating to another city or country, or if the funeral home goes out of business you can lose the money you gave in the first place.
Funeral Fund
A viable option if you´re reluctant to prepay for your funeral. This involves making deposits towards your funeral in a savings account and making interest on the sum. It’s important to explore your banking options depending on your situation and needs. An alternative is to make a financial investment to see how your investment could grow. If invested wisely then a profiting investment can provide many benefits but keep in mind that a saving account earning interest is significantly more low-risk than investing.
Boost your earnings
If you’re looking to enhance your contributions or seeking a quick fix to gather immediate funds whether it’s in anticipation for your funeral or for a family members funeral. Then checking out additional online work or shifts can provide a good source of extra money, however, it’s important to check whether you’ve been owed money from banks such as unclaimed PPI which can be a sum you could have forgotten.
Making plans and budgets that involve discussing your demise may be one of those things we continuously leave for later in life, but this is a reality that we must address in time. Think about the impact that an unexpected death can have on your partner and children.
A simple plan can provide the financial support needed for your funeral so that you’re confident you’ll have the exact send-off you imagined. It’s also a great opportunity to alleviate the financial burden from family members who might be working hard to ensure they’ve got savings for other obligations higher on their priorities than a funeral.