Funeral costs in the UK have increased by over 115% since 2004, with the average cost of a funeral now being around £4,285. With the cost of living crisis, combined with the emotional strain of arranging a funeral for a family member – it can make times very difficult for those who find themselves in this situation.
The goal of this article is to bring funeral plans to your attention and whether or not they make practical sense for you.
What Are Funeral Plans?
A funeral plan is a prepaid agreement with a funeral director that allows a person to pay for a funeral before they pass away.
There are different variations to these plans. Some cover the core services such as burial or cremation fees, transportation costs and professional fees. Others cover additional costs such as flower arrangements, catering, and more.
In Scotland, providers like Scotmid Funerals offer a variety of funeral plans from the basic core services to more bespoke plans, offering something for everyone.
Why Should You Get a Funeral Plan?
Financial Protection Against Inflation
Inflation has affected every industry across the board – including the funeral industry. With a funeral plan, you can lock in the price of a plan at today’s cost.
To give you a real world example, if a plan costs £3,500 today, that same service could cost you £5,500 in 2040 due to inflation.
It’s a financially smart thing to do and prevents you from spending more for the same plan in the future.
Reducing Emotional Burden
Planning a funeral is an emotionally draining task. Not only do you lose someone you love, you now have the task of dealing with funeral arrangements. Preplanning ensures you can plan your funeral as you wish. Whether it’s direct cremation or burial, solid wood casket or eco-friendly ones – the choice is yours.
This takes a lot of stress off loved ones and relieves them of making difficult decisions while grieving.
Predictable Budgeting
Funeral plans at Scotmid Funerals allow you to spread your payments over time, in a lump sum, or a combination of both. This flexible approach helps households budget effectively without compromising savings or sudden financial emergencies.
How to Choose a Funeral Plan in Scotland?
Verify FCA Regulation
All funeral plan providers in the UK need to be regulated by the Financial Conduct Authority (FCA) since July 2022. This is for your benefit as it ensures your money is protected in a secure trust or insurance policy.
You can confirm a providers registration on the FCA website.
Scotmid Funeral is fully registered with the FCA, offering transparent and secure funeral plans.
Flexibility
Life circumstances can change, so ensure your plan allows for any adjustments. For example, if you lost your job – you may need to put your payments on hold. Or if you relocate, confirm whether the plan can be moved to a new location.
These are the things that make a good funeral plan, and something we at Scotmid Funerals will always try to cater to. Learn more and see our flexible funeral planning options.
Frequently Asked Questions
Are Funeral Plans Taxable?
No. Funds in FCA-regulated plans are exempt from inheritance tax (HMRC, 2023).
Can I change my funeral plan later?
Most providers will try to cater to your needs. For example, if you wanted to switch from cremation to burial. Contact Scotmid Funerals here if you’d like to discuss changing your plan.
Conclusion
Funeral plans can offer financial stability and peace of mind, but its important to remember that not all providers are the same and to choose one you can trust.
For Scottish families, Scotmid is the perfect option for you – providing flexible options, plans for all needs and excellent customer service. We hope you found this article helpful.
