Death is understandably a topic that people don’t like to think about, but as we all know it’s an unavoidable part of life.
At Peavoy Financial Planning we understand that organising a Funeral can be a difficult experience for family and friends, however by putting financial measures in place today, it is possible to make this time easier financially for your loved ones whenever death occurs.
Funeral costs can add up. They include the coffin, hearse, limousine transport and embalming. These relate to services provided by the undertaker. In addition there are other third party costs.
These typically include the purchase of a grave, grave opening, cremation charges, church fees, newspaper notices, flowers, organist, musicians, soloist, funeral stationery and catering.
Whilst Term Assurance is often used to match the short term protection needs for a family, Whole of Life Insurance is the best fit for long term financial requirements like Funeral Expenses.
Whole of life Insurance is a straightforward long-term life cover policy. It pays out a lump sum when you die. As the name suggests, it provides cover for the rest of your life. So as long as you keep paying your premiums, it will pay out a lump sum to your estate when you die.
Whole of Life policies are established for a number of different reasons so when you are considering the amount of cover you need, it is important to think about what you want the proceeds to be used for after you die.
- Do you want the policy just to pay for Funeral Costs?
- Are there any loans or bills to be cleared?
- Do you want to leave a lump sum for your spouse or family?
- Could their be an inheritance tax liability for your beneficiaries?
How much do these policies cost?
The cost of these policies depend on a number of factors such as, your age at start date, the amount of cover you choose, whether or not you smoke, your health and occupation.
However, the following table gives you an idea of the cost of a Single Life policy today which could be used to help with Funeral Expenses, for a non smoker for a Death Benefit of €15,000. These monthly premiums assume that you are underwritten at Standard rates.
| Age at Start Date | Whole of Life Cover Amount | Monthly Premium |
| 40 | €15,000 | €16.75 |
| 45 | €15,000 | €17.79 |
| 50 | €15,000 | €22.10 |
| 55 | €15,000 | €27.31 |
| 60 | €15,000 | €35.46 |
| 65 | €15,000 | €46.74 |
| 70 | €15,000 | €68.29 |
| 74 | €15,000 | €85.83 |
What to do next?
We understand that nobody likes to think about the worst case scenarios in life but we also need to counter balance that with encouraging people to plan. To find out how you can put an affordable plan in place for the whole of your life please do make contact with us by phone on 087-2902206 or alternatively by e-mail on david@peavoyfinancial.ie.
David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.
David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland
Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy, completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use
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