Long term pre purchase

Long term pre purchase

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crankedup

Original Poster:

25,764 posts

242 months

Tuesday 16th January 2018
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Posted elsewhere that wife and I have pre purchased our funeral plans. Detail that matters in here is that each plan cost £3800 rounded down. For that we receive the funerals we signed and paid for. We also purchased our burial plot at £1000.
Our investment is strongly underwritten.No further payments are required wether we take up our service requirement tomorrow or in thirty years.
We are 67 years young and hope that we may have another 15 or 20 years, who knows.
But we think it’s a reasonable investment of our money, whichever way funerals have to be paid for. Our cash is safe, family know that do not have the financial worry when the time comes, we get the send off we want.
I know it’s a strange subject for some and it felt just slightly odd dealing with it, but it’s something that’s now done and pleased we can now forget it.
Oh and we got a 5% dis lunt for joint pre arrangements.
If we had stuck that bit of cash into a regular investment I don’t think we would be better off financially or in mind

Jockman

17,912 posts

159 months

Tuesday 16th January 2018
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Is there such a plan that covers everything? I mean >everything<.

Mgd_uk

368 posts

103 months

Tuesday 16th January 2018
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What if the funeral company goes bust between now and then?

sidicks

25,218 posts

220 months

Tuesday 16th January 2018
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Mgd_uk said:
What if the funeral company goes bust between now and then?
Depends on exactly what sort of plan it is and where the money is held.

This is a good source of information:
https://funeralplanningauthority.co.uk/regulations...

crankedup

Original Poster:

25,764 posts

242 months

Tuesday 16th January 2018
quotequote all
Our plan covers all the major aspects of funeral requirements.
Collection of deceased to Chapel of Rest.
Coffin
Chapel of rest viewings for family
Preparation of body for burial or cremation
Hearse from chapel of rest to Church onto Cemetery
Limo for family transport.
Grave digger
We had a choice from four different plans at different levels of personal requirements and of course costs.

Our only significant cost outside of our plan was purchSe of brave plot.

crankedup

Original Poster:

25,764 posts

242 months

Tuesday 16th January 2018
quotequote all
Mgd_uk said:
What if the funeral company goes bust between now and then?
Registered funeral plans are underwritten, ours is with the east of England co-operative underwritten by Royal London. We have zero worries about our invested money.

Jockman

17,912 posts

159 months

Wednesday 17th January 2018
quotequote all
crankedup said:
Our plan covers all the major aspects of funeral requirements.
Collection of deceased to Chapel of Rest.
Coffin
Chapel of rest viewings for family
Preparation of body for burial or cremation
Hearse from chapel of rest to Church onto Cemetery
Limo for family transport.
Grave digger
We had a choice from four different plans at different levels of personal requirements and of course costs.

Our only significant cost outside of our plan was purchSe of brave plot.
There are some disbursements that you haven't noted but the main one you have - the burial plot.

Interesting that these are never included in the Plan.

The most expensive items I see on Funeral bills are usually those levied by third parties - doctors, vicar, local council etc and these are the real cost drivers in funerals.

If you think healthcare inflation is bad, try this contributor to Funeral inflation.

Don't worry, I know you know this.

Jockman

17,912 posts

159 months

Wednesday 17th January 2018
quotequote all
crankedup said:
Mgd_uk said:
What if the funeral company goes bust between now and then?
Registered funeral plans are underwritten, ours is with the east of England co-operative underwritten by Royal London. We have zero worries about our invested money.
In the unlikely event that east of england coop goes bust will this plan then be awarded to another Funeral Director?

Will they match the price you have been quoted or does it say in Ts&Cs that you may have to make up any shortfall?

crankedup

Original Poster:

25,764 posts

242 months

Wednesday 17th January 2018
quotequote all
Jockman said:
crankedup said:
Mgd_uk said:
What if the funeral company goes bust between now and then?
Registered funeral plans are underwritten, ours is with the east of England co-operative underwritten by Royal London. We have zero worries about our invested money.
In the unlikely event that east of england coop goes bust will this plan then be awarded to another Funeral Director?

Will they match the price you have been quoted or does it say in Ts&Cs that you may have to make up any shortfall?
Very good question and one that I hadn’t considered tbh! It is extremely unlikely the East of England co-op would go bust, but stranger things have happened. I am making enquiries, thanks for mentioning this scenario. Can’t believe I missed it, we are on a 30day change your mind agreement.

edit to add : the funeral plans would be transferred, via administration by Royal London, to a funeral director of our choice at no additional costs to us. Most likely and under agreement already an alternative Co-operative.

Edited by crankedup on Wednesday 17th January 13:15

Jockman

17,912 posts

159 months

Wednesday 17th January 2018
quotequote all
crankedup said:
Very good question and one that I hadn’t considered tbh! It is extremely unlikely the East of England co-op would go bust, but stranger things have happened. I am making enquiries, thanks for mentioning this scenario. Can’t believe I missed it, we are on a 30day change your mind agreement.

edit to add : the funeral plans would be transferred, via administration by Royal London, to a funeral director of our choice at no additional costs to us. Most likely and under agreement already an alternative Co-operative.

Edited by crankedup on Wednesday 17th January 13:15
Agreed that would be the sensible route to take. The Coop has enormous control of its supply chain through vertical integration.

These Policies are highly sought after as future revenue stream.

I know of at least one Provider in Sid's link who does not have such integration and so organises a Plan and then offers it to various FDs to see where it can get the best price.

mikeiow

5,287 posts

129 months

Wednesday 17th January 2018
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I'm up for a good cremation and sprinkling off the IOW ferry (fish food!). Don't tell the Captain, and don't do it downwind!!

Main thing in my mind is a decent party for people....but I figure we will have left the kids enough for that....
How much is a cremation these days? Or in 30+ years, when I hope it won't be needed before.....

crankedup

Original Poster:

25,764 posts

242 months

Saturday 20th January 2018
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Jockman said:
crankedup said:
Very good question and one that I hadn’t considered tbh! It is extremely unlikely the East of England co-op would go bust, but stranger things have happened. I am making enquiries, thanks for mentioning this scenario. Can’t believe I missed it, we are on a 30day change your mind agreement.

edit to add : the funeral plans would be transferred, via administration by Royal London, to a funeral director of our choice at no additional costs to us. Most likely and under agreement already an alternative Co-operative.

Edited by crankedup on Wednesday 17th January 13:15
Agreed that would be the sensible route to take. The Coop has enormous control of its supply chain through vertical integration.

These Policies are highly sought after as future revenue stream.

I know of at least one Provider in Sid's link who does not have such integration and so organises a Plan and then offers it to various FDs to see where it can get the best price.
I am content that we don’t have to worry about all of this now, the wife’s plan we are paying for over 12 months DD, thought may as well use it as no extra charge is made for the facility. IF we get another 20 years on this planet I reckon it’s a good investment. If it goes belly up we still get our funerals. Done and dusted.

crankedup

Original Poster:

25,764 posts

242 months

Saturday 20th January 2018
quotequote all
mikeiow said:
I'm up for a good cremation and sprinkling off the IOW ferry (fish food!). Don't tell the Captain, and don't do it downwind!!

Main thing in my mind is a decent party for people....but I figure we will have left the kids enough for that....
How much is a cremation these days? Or in 30+ years, when I hope it won't be needed before.....
The F.D. that we have our services with would cost from around £3500 —- £4000