When you buy a prepaid funeral plan do you actually know what's happening to your money?
If you're thinking about buying a plan you should read this first.
This is worth being aware of...
I did some analysis the other day regarding our plan performance vs. a couple of unnamed plan providers whose admin/commission fees we know of. It's pretty scary if you compare the original plan price paid by the plan holders to the potential actual value of the plan in 10 years time. I've based the figures on our last 10 years avg applied growth (3.65%) against the average CPI over the last 10 years (2.39%) which seems pretty fair based on what our competitors do.
Here's how it looks in graph form. The yellow line is based on an original plan price of £3,695.00.
The reason this matters to you is that in this example, in 10 years time your plan could be worth barely more than you paid for it or perhaps even less than you paid for it today. At the time of need is a funeral director really going to be able to deliver your plan for your family?
- Posted 12th June 2018