RegulationNov 23 2015

Funeral planning sense

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Funeral planning sense

Advisers should talk with their clients about funeral plans and life insurance plans, because providing options to cover funeral costs makes “financial sense”, according to the commercial arm of a charity for the elderly.

Gordon Morris, managing director of Age UK Enterprises, said: “Taking out a funeral plan can help steer you through some of these issues and also makes financial sense, as you’re effectively paying for your funeral at today’s prices.

“It is really important to be as clear as possible on what is to be paid, how this compares in total with other plans and what will be received from the plan when it is needed.”

The news came following research by the pensions provider, which found that 2.1m people do not know how they are going to meet the cost of their funeral.

Three in 10 of the 2,301 people surveyed said they would cover the costs with either a funeral plan or an over-50s life insurance plan.

Mr Morris added: “With the rise in living costs and low interest on savings, we all know how important planning ahead is. While it’s a difficult and sensitive subject, planning on how to manage funeral costs is no different and is something we should all try to consider.”

Adviser view

Peter Chadborn, independent financial adviser at Essex-based Plan Money, said: “Fortunately for most clients of financial advisers, this won’t be an issue as they won’t fall into this category.

“If someone is struggling to pay the costs of a funeral, they will struggle to afford financial advice in the first place.”