What is the Best Investment

So what is the best investment?

The best investment for most people is not one which produces the best possible financial return.  It is one which gives a tremendous return in terms of peace of mind.  It also relieves family members of the liability to find large sums of money at as little as a weeks notice. Undertakers often demand payment up front as their bad debts can be as high as 40%. Ideally, it should form part of everyone’s investment portfolio.

The table below clearly shows that a normal savings or deposit account is not the best investment you can make.  Clearly, everyone needs some savings though, so we are not suggesting you move all of your hard earned cash into a prepaid funeral plan.

Best investment: Savings or Funeral Plans?

2008 2009 2010 2011 2012 2013 2014 2015 2016
Cost of Dying (£) 6,698 7,098 6,801 7,248 7,114 7,622 8,427 8,126 8,802
Funeral (%) 38.1 38.5 42.0 42.6 46.2 45.3 42.6 45.4 44.3
£2551 £2732 £2894 £3087 £3,287 £3453 £3590 £3689 £3899
% increase 7.1% 6% 6.7% 6.5% 7.8% 4% 3% 6%
£ INCREASE £181 £162 £193 £200 £166 £137 £99 £210
Average savings account paid 5.09 2.21 2.8 2.75 2.8 1.77 1.48 1.4 1.23

There cannot be a much more cautious investment than a prepaid funeral plan.  But do watch out for the so called Over 50s Plans which are, in our opinion, cheap and very nasty. With some of them, missing a couple of payments during your last illness could mean losing every penny you have put in. Not the best investment, but the adverts don’t push the downside.

The table shows the total cost of dying too, and the other major cost is the that the legal help to deal with all the paperwork.  We are working on a way to help there too, but in the mean while you might want to check out The Probate Department for relatively economical and very flexible help, should it be needed.

We are not for a moment suggesting that there are not other investments which might not give you a far higher financial return.  But many of them may be frozen when you die. And good times can go wrong, so no matter how wealthy you are, it makes senses to include prepaid funeral plans as probably your best investments.  Why not contact a member today?