# Funeral plan investments FOUR TIMES better value than a cash ISA Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-04-16 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: The Importance of Funeral Plans in Today's Financial Meta Description: Learn how funeral plans can save your loved ones from financial burden. Find a reputable provider registered with the FPA for peace of mind. URL: https://financedigest.com/funeral-plan-investments-four-times-better-value-than-a-cash-isahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd160418-1-1-1736842838803-compressed.jpg) The phrase ‘you can’t spend it when you’re gone’ is often used to encourage people to relax their purse strings a little and enjoy life while they still can. Unfortunately, when it comes to funerals, we know that someone will have to foot the bill when the time eventually comes and, with the cost of funerals rising at four times the rate of inflation\[1\], that could leave our families with a potentially difficult financial situation. This dramatic increase in funeral prices has led to 200,000\[2\] people a year taking out funeral [plans to protect](https://www.financedigest.com/estate-planning-protect-your-assets.html "Estate Planning: Protect your assets") their families from a potential difficult financial situation. An independent report\[3\] by Fairer Finance concluded that, because they lock into the [cost of a funeral at the time](https://www.financedigest.com/netflixs-gaming-foray-will-cost-time-and-money-wall-st.html "Netflix’s gaming foray will cost time and money – Wall St") of purchase, funeral plans can provide a good financial investment. So what are the figures? Well, the [cost of a funeral has been increasing at an average of 5.45% per year since](https://www.financedigest.com/britains-cost-of-living-crisis-sends-sterling-to-lowest-since-mid-july.html "Britain’s cost of living crisis sends sterling to lowest since mid-July") 2011\[4\], while the current best [value easy access ISA currently has a rate](https://www.financedigest.com/microbial-rennet-market-overview-2022-2029-top-manufacturers-cagr-value-future-scope-revenue-growth-rate-and-forecast.html "Microbial Rennet Market Overview 2022-2029 (Top Manufacturers, CAGR Value, Future Scope, Revenue, Growth Rate and Forecast)") of only 1.3%\[5\]. So while in 2017 the average funeral cost £4,086, if that price continues to increase at the same rate that it has for the last seven years, then it will reach £5,924 by 2024\[6\]. The [Dignity Funeral Plan Savings Calculator](https://www.dignityfunerals.co.uk/funeral-plans/what-is-a-funeral-plan/funeral-costs) suggests that anyone investing that money in an ISA today could be left £1,171 short for the average funeral by 2024, whereas if they were to put their money into a Funeral Plan, they would be fully covered. The Fairer Finance report acknowledged that while Funeral Plans represent good value for money, a lack of regulation and consumer protection in the [industry means consumers should do their research](https://www.financedigest.com/nitrate-free-bacon-market-industry-research-segmentation-key-players-analysis-and-forecast-to-2029.html "Nitrate-Free Bacon Market Industry Research, Segmentation, Key Players Analysis and Forecast to 2029") to avoid getting stung. Here, Dignity Funerals, who commissioned the report and whose Diamond plan has a Defaqto five star rating, [put together](https://www.financedigest.com/10-ways-to-put-together-a-killer-investment-pitch.html "10 WAYS TO PUT TOGETHER A KILLER INVESTMENT PITCH") tips for anyone looking to identify a safe, good value funeral plan investment. 1. **Find a provider who is registered with a recognised regulatory body** When you’re looking to take out a prepaid Funeral Plan, it’s important to see if they are registered with a professional body, like the Funeral Planning Authority (FPA). \[GJ1\] \[BG2\] The FPA is one of the recognised regulatory [bodies that regulates](https://www.financedigest.com/global-crypto-regulation-body-likely-in-next-year-top-official-says.html "Global crypto regulation body likely in next year, top official says") providers of Funeral Plans in the UK to ensure that customers get the funeral they paid for, when it is needed. Any business registered with the authority has to [operate in line with a set of Rules and a Code of Practice that protects the interests of customers](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems"). 2. **Read through the fine print** All funeral providers work differently and it’s [important to read through the fine print to ensure quality of service](https://www.financedigest.com/how-financial-services-organisations-can-address-the-vulnerability-lag-and-safeguard-their-most-important-digital-assets.html "How financial services organisations can address the ‘Vulnerability Lag’ and safeguard their most important digital assets") is guaranteed when it comes to your funeral. Some Funeral Plan providers simply arrange the funeral plan and then the funeral is sub-contracted to an independent funeral director, while others have their own dedicated team of funeral directors as part of their company. We find that this second option provides greater [control over the quality](https://www.financedigest.com/quality-control-measures-for-drug-development-are-of-utmost-importance-as-inadvertent-presence-of-unknown-pharmaceutical-ingredients-can-further-complicate-health-conditions-of-the-patients.html "Quality control measures for drug development are of utmost importance as inadvertent presence of unknown pharmaceutical ingredients can further complicate health conditions of the patients.") of the funeral director, so make sure you check what’s included. 3. **Ensure your money is protected** Many of us hope to take out our funeral plans many years before our actual funeral, therefore it is [important to ensure that your funeral will still be protected in the future and to check](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") if anything could be subject to change. Look at where your money will be placed; companies that invest your money into a [secure trust fund represent a safe option](https://www.financedigest.com/balancing-britains-energy-security-options-as-prices-rise.html "Balancing Britain’s energy security options as prices rise"). 4. **Will the Plan move with me?** Not all plans are portable and if [you’re likely to move house](https://www.financedigest.com/how-to-move-house-when-youre-on-a-tight-budget-5-key-tips.html "How to move house when you’re on a tight budget? 5 Key tips") before your funeral, it could impact your policy. Looking for a provider with funeral directors nationwide will give you extra flexibility and reassurance. It’s important to know you’re guaranteed the same high quality of [service and care](https://www.financedigest.com/the-home-care-services-market-to-get-pushed-based-on-digitization.html "The Home Care Services Market to get pushed based on digitization") wherever you go, and that there won’t be a cost for moving your plan. 5. **Sharing your final wishes** Documenting funeral wishes such as whether you’d prefer a burial or cremation or if you have any special requests such as songs to be played at the service will protect those [left behind](https://www.financedigest.com/is-africa-being-left-behind-in-the-push-for-a-net-zero-world.html "Is Africa being left behind in the push for a net zero world?") from having to make difficult decisions when the time comes. With Dignity, if you opt for a prepaid funeral plan, you can document your wishes and change your preferences as many times as you wish, giving you the comfort of knowing that everything has been organised.\[WB3\]  Some providers only let you document these special requests once, and charge for subsequent changes. For more information on things to consider when comparing funeral plans, please visit: [https://www.dignityfunerals.co.uk/funeral-plans/news/10-things-to-consider-when-comparing-funeral-plans/](https://www.dignityfunerals.co.uk/funeral-plans/news/10-things-to-consider-when-comparing-funeral-plans/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---