Lots of people write off the idea of taking out funeral plans, either putting it on the backburner as something which they will look at later, or just putting money aside in their will for the person who will be arranging their final send off.
This, in short, is a terrible idea.
The worst thing you can do when it comes to funeral planning is deciding not to plan at all, or putting it off.
You just won't see any of the benefits, and as a result your loved ones can actually suffer.
The financial benefits of taking out funeral plans are well documented.
While people often say that they don't mind having conversations about death, quite often they won't actually have a proper discussion about their funeral plans and how they think their life should be celebrated, or even whether they would rather be buried or cremated.
These are really basic things which will make the funeral planning itself much, much easier.
There's a few different options if you decide you do want to put some money aside for your financial future and your funeral plans.
Over 50s Plans Over 50s plans are very simple savings schemes which require you to make ongoing set payments every month in order to receive a fixed pay out when you pass away.
You will need to maintain the payments or your policy will lapse, and any payments you've already made will disappear into the ether.
On paper they seem like quite a good idea.
Pay a small amount and receive a hefty lump sum to help with your funeral costs or just as part of your will.
However, you'd actually be much better off paying the same amount into a savings account which you'll make interest on, as you could easily make more this way.
There's a fixed amount you'll receive from an over 50s plan regardless how long you've been paying in for, and you won't make any interest either so you can actually end up making a loss.
Prepaid Funeral Plans While an over 50s plan might not even cover even the most basic funeral costs, a prepaid funeral plan definitely will.
Not only this, you'll have paid the cost in advance which means you can avoid inflation and the ever rising costs of funerals.
In the last ten years the price has risen more than 70 percent, and we can't imagine they're going to get any cheaper.
Because the rate of funeral costs is rising more rapidly than the rate of inflation, you'll be better off locking your money away at today's rates, even though it'll mean you miss out on the interest.
Funeral plans are an incredibly simple and cost effective way of putting some thought into your financial planning, and because they can even help reduce the amount of inheritance tax due (because they don't count as part of your estate) they're a really worthwhile option.
You don't need to pay everything up front, but they will cost less if you can.