07 / 04 / 21
Reasons to pay monthly for a funeral plan
The importance of later life planning has become more apparent than ever, and the demand for prepaid funeral plans is soaring.
After living in a global pandemic for over a year, it’s got more and more of us realising that we never know what’s around the corner. It’s really hit home that planning for our future is crucial, and taking out a pay monthly funeral plan is an affordable and manageable way of doing so.
Here at Prosperous Life, it’s our mission to make funeral plans accessible for everyone. Our monthly payment plans are the perfect option for those who can’t commit to providing an upfront payment and can be tailored to your individual budget.
Find out the benefits of paying monthly for a funeral plan below.
Pay monthly to manage the cost over time
Managing the cost over a longer period of time is the obvious benefit of a monthly payment agreement, and there are a few reasons why this may be the case, based on your circumstances.
First and foremost, you may just simply prefer to pay for services month-by-month as opposed to one lump sum. We live in a world where subscription services and direct debits are the norm, and we are all very comfortable with this method of payment.
Paying outright might not be a viable option for you. Perhaps you do not wish to wipe out your savings, and this would make complete sense, as we build our savings to act as an emergency fund and you never know what you might need that money for.
Monthly debits are a reminder of the services that you are receiving. If you pay something off in full from the start, it’s slightly easier to put that to the back of your mind, which can lead to you under utilising the service or forgetting about it altogether.
Pay monthly if you have other financial commitments
Paying monthly to secure your funeral plan would also make sense if you have other ongoing financial commitments, but you still recognise the benefit of planning today.
It could be the case that you have an ongoing circumstance that may require a lump sum in the future, such as solicitors fees, healthcare costs or a car repair. It’s only right that you keep your capital in-hand to deal with those commitments first.
At the same time, a manageable monthly payment plan can help you get your foot in the door and begin your journey alongside those responsibilities.
Plenty of our plan holders have expressed that they prefer to mix their plan payment in with their other basic amenities like energy, water and food bills, to give them a clearer idea of what they are financially responsible for on a monthly basis.
Pay monthly if you don’t have savings
Not everyone has the financial benefit of being able to build up their savings, and this is something we both respect and appreciate. You may simply have no other choice but to pay monthly for this reason, and that is absolutely fine – in fact, this payment method is our most popular.
Monthly payment plans are there for those who recognise they need to put a plan in place for their future, but can’t afford to pay outright.
Pay monthly at no extra cost
Whilst paying for a funeral plan in one single instalment isn’t realistic for everyone, the idea of paying monthly can sometimes seem a little off-putting, with the belief that payment plans come with added interest.
Here at Prosperous Life, we offer monthly payment plans with no added interest, if the instalments are agreed to be paid over a period of 12 months. This means that you’re able to get the funeral plan you want, at the price you want it, whilst still spreading the cost to balance your finances.
Our flexible payment options offer something to suit all budgets, with extended payment periods beyond 12 months that will allow you to reduce your monthly payments. However, when opting to take out a payment plan longer than 12 months, this will incur a small additional fee.
What happens if my plan isn’t fully paid at the time of my death?
The money you have already paid into your plan will go towards covering the cost of your funeral arrangements. Your next of kin will be required to pay any outstanding balance to ensure that your plan is paid for in full and your arrangements can go ahead as planned.
Can I make changes to my payment plan?
Our payment plans are flexible, and should you wish to increase or decrease your monthly payment instalments, you can do this at any time. If you find yourself in a financial position whereby you’d like to pay off your remaining balance in full at an early date, this can also be arranged.
Can I cancel my plan?
Our 30 day cooling off period gives you the right to cancel your Prosperous Life funeral plan within 30 days for a full refund. Any cancellations made after this period will be subject to a cancellation fee.
How else can I pay for my funeral plan?
You can choose to pay for your Prosperous Life funeral plan in one lump sum or monthly instalments, the choice is entirely up to you!
How much is a funeral plan per month?
Your monthly payment plan will be tailored to your individual requirements. Depending on the type of funeral plan and length of payment period you choose, we will agree on a set number of monthly instalments. If you would like to find out more about your options, get in touch with us today.
Are you regulated?
The Financial Conduct Authority will begin the regulation of the pre-paid funeral plan sector next summer, 2022.
This means that a set of rules will be published for all funeral plan providers to follow. These rules help safeguard customers, ensuring that they receive the service as stated in their plan, and that their money is responsibly held until their time of need.
For reputable funeral plan providers it mostly means formalising processes that we already have in place, and we are supportive of this and actively engaging with the FCA throughout the process.
Where does my money go?
All of our customers’ money is held in The Great British Funeral Trust, which is a separate legal entity.
The trust is managed and audited independently and the money is held with Cater Allen / Santander Bank. This means that all money is ring-fenced to pay for a customer’s funeral when the time comes.
Prosperous Life are one of the UK’s leading funeral plan providers. We offer a range of different prepaid funeral plan options to suit your requirements and budget. If you’d like to find out more, or are looking for some guidance and support, please get in touch with us, we’d love to hear from you.