The reason I’m writing this is to help make vulnerable and elderly people aware of the HUGE funeral plans scandal, and to let people know they are being RIPPED OFF by despicable companies looking to STEAL your money.
I know it might seem unbelievable when you have well-respected, household name companies promoting funeral plans as though they are good for you – but the real truth (which you’ll see for yourself if you read their small print) is that they are a TOTAL CON, and they are designed to do nothing more than steal your money.
Maybe it shouldn’t be a shock at all – we’ve had the banks needing to be bailed out by the public, we all suffer austerity while they’re paying themselves huge bonuses again, the PPI scam scandal, and all of the rest, and no one ever gets punished for it.
All the politicians say is “lessons will be learned” – they’re learning alright – how to do it better, make it last longer, and scam even more people. It’s an absolute disgrace.
Please help me to spread the word, the FACTS about Funeral Plans are below…
So, What’s So Bad About Funeral Plans?
On the face of it, they seem like a great idea. How they work is that you pay low monthly fees so that when you die your funeral costs will be covered.
What people DON’T know is that the entire funeral plans business is a total SCAM!
Did you know that:
A) The funeral plans industry is totally unregulated – that means there is no government body overseeing it to make sure it’s fair, there is no-one at all looking out for you – there is NOTHING AT ALL TO PROTECT YOU OR YOUR MONEY.
Anyone – any crook or unscrupulous company could set up offering funeral plans that aren’t worth the paper they’re written on – and nobody can do A THING about it!
This could make the PPI (Payment Protection Insurance) Scandal look like a picnic.
B) Your funeral plan company have a special deal with a specific funeral director in your area (they have deals with funeral directors in every town and city in the UK).
This means that you have NO CHOICE which funeral directors your family can choose – you HAVE to use the funeral director you are TOLD to use.
C) When it comes to the cost of the funeral – suppose you have a funeral plan worth £6500 today – while you think you are getting a £6500 funeral, you are actually getting a funeral that costs around £3000 – the extra £3500 is your funeral plan providers “profits”.
The funeral director gets lots of guaranteed business, the funeral plan company take a huge cut out of the premiums you’ve paid – OVER FIFTY PERCENT!
If you always wondered how they make their money – now you know!
D) If your family want extra things that aren’t covered in this most basic of funerals – they have to pay EXTRA for it.
E) WORSE THAN THAT… If your funeral plan hasn’t been fully paid up, then the difference has to be paid for first.
So, suppose you have a £6500 funeral plan, and you die when you’ve only paid £3000 of that plan…
Your family (who can probably ill-afford it) would need to pay the extra £3500, just so that you can get the £3000 funeral that your payments have already covered – in other words, they are simply pouring money into the pockets of the funeral plan company.
F) EVEN WORSE THAN THAT – If you miss JUST 1 (JUST ONE!) single payment (suppose your bank account hasn’t enough funds because a big bill came out, or for some other reason) – your plan is cancelled and is null and void…
But in the terms and conditions of the funeral plan – they get to KEEP ALL of the payments you’ve already made – SO YOU GET NOTHING – No funeral, no refunds – NOTHING!
You thought you’d covered your funeral? THINK AGAIN!
G) AND WORSE STILL… There are numerous other “small print” clauses hidden away that could cost you even more money, depending on the funeral plan company you use.
For example, one of the big ones (the REALLY BIG, household name companies) have a clause that should they go bust, then your money will be returned “after costs and fees” (of the going bust process).
How much is that likely to be? How much of your funds will you get back?
There is no clue given, but it could be practically nothing – in other words, they don’t “ring-fence” your money so that it is safe, it looks like it might all go into their day-to-day “running costs” – which could mean you get back next to nothing.
You could pay them £Thousands and get back just a few pounds.
It might seem unlikely they will get into trouble – but who’d have thought that a household name like Woolworth’s would go bust, or that the banks would end up in serious trouble?
Is it a risk worth taking, or that you can afford to take?
Is there a Better Option than Funeral Plans?
It’s important to note that I’m not saying funeral plans are a bad idea for everyone, it all depends on your circumstances.
If you’re sure that you will have paid your plan up in full before you die so that your family don’t need to find money they don’t have, then they could be a good choice.
If you are sure that you’ll never miss a payment (even if it isn’t your fault), then they could be a good choice.
If you don’t mind which funeral director you use, or the kind of funeral you end up having then they might be right for you.
If you are happy to over-pay for what you get in return just so that your funeral costs are covered, then they could be the right choice as well.
As long as your and your families wishes are covered then that’s ALL that matters – if a funeral plan will do that for you, then it’s possibly a good fit, But…
…there is an alternative that might be a much better way for EVERYONE, that could be a more sensible and affordable option that has Numerous major advantages.
This alternative is good old fashioned life insurance, which you pay for in the same way – with small monthly payments (from as little as £10 per month), but life insurance ALSO gives you:
A lump sum (that you decide on), so you can be sure there’s more than enough money that you can have the funeral you want, with whichever funeral director you want.
Depending on how much cover you opt for, there could also be money left over for your family.
Best of all is that after you’ve paid in a certain amount of premiums (usually 2 years worth), then if you die before the end of your plan, there is nothing extra to pay – and the full amount is paid out.
In fact if you die accidentally before you’ve paid in 2 years of premiums – the plan will STILL pay out the full amount.
If you remember, with funeral plans your family would need to pay the rest of the premiums in one lump sum – but with life insurance – they don’t need to pay one single penny.
When you think about it – is there even a need for funeral plans to exist at all, when there’s already a product available that’s potentially much, much better?
To my mind life insurance makes much more sense than a funeral plan, because you get out of it the full amount you set it up for, it gives you flexibility, plus of course it’s insurance, so you don’t have to pay all of the premiums before you can collect on it.
If the worst does happen you know your family aren’t going to be left with a big financial problem to solve, or huge fees to pay.
A Life Insurance Plan really does give you and your family total peace of mind – and depending on how much you set it up for, it could even give them a nice little windfall as well – something you DEFINITELY won’t get with a funeral plan!
Of course there are many life insurance companies out there, so you might want to shop around, but one that always seems to be highly recommended is Shepherds Friendly, a 200 year old mutual society.
They also have very good reviews and ratings, (you can see for yourself by clicking here or the image of their logo below).
Take just 30 seconds to apply online (click here) and YOU WILL GET:
Low Cost Monthly Payments (from as little as £10 per month)
Fixed Low Premiums (it’s guaranteed that your premiums will never increase)
If you miss a Payment – they simply remind you, they don’t cancel your plan!
Insurance with a Long Established (200 years), Highly Regarded, Ethical Company
You can get a further £250 towards your funeral (click here for more)
TOP TIP - Apply using the online form, and you’ll ALSO get a £50 shopping voucher (can be used at M&S, etc)
Join the MILLIONs of people who can see the benefits of life insurance
SAVE your family from the financial burden of rising and increasingly expensive funeral costs
Simply click here to apply online now for a FREE, no obligation quote!
One of the things I like the most about Shepherds Friendly is that they are totally transparent, even the small print is actually in big print! (you can see a PDF of their big-small print here).
Also, and really important is that they won’t just cancel your plan if you miss a payment, they simply remind you – in fact even if you missed two consecutive payments – they still wouldn’t cancel your plan!
To me that smacks of honesty, integrity, and ethics and it’s because of all of this, that I wholeheartedly recommend them – learn more about them and their insurance plans for over 50’s here.