What is a Funeral Plan and why you should take one out?

What is a funeral plan?

With the costs of an average funeral in the UK increasing year-on-year, estimating to cost on about £3,700, it is becoming increasingly a priority to make sure that you have a funeral plan in place, to protect your nearest and dearest from the high costs of funerals. We take a look at how you can save money by taking out a funeral plan and what this will mean for you and your family.

Why should I take out a funeral plan now?

By picking a prepaid funeral plan now, it means that you will be able to have it frozen at today’s price without additional costs in the future to think about too. Most funeral plan packages will allow you to either spread the cost of a matter of months or pay the full amount in one lump sum.

A prepaid funeral plan means less of a financial burden on your loved ones after you have passed.

As we have previously mentioned, the cost of funerals is rising, which is another reason as to why you should consider getting a prepaid funeral plan today. Did you know that the cost of funerals in the UK has risen by a staggering 103% in the course of just 12 years? (source: Golden Charter). If the cost of funerals continues to go up at this rate, this means that a funeral by 2036 could easily cost loved ones £12,000. By buying a prepaid funeral plan now, it means that it is guaranteed that you will only pay for the funeral director’s service at today’s rates.

How do prepaid funeral plans work?

A prepaid funeral plan allows you to make preparations for your funeral today, allowing you to have peace of mind that your loved ones will not have to deal with the burden of high funeral costs after you have passed away at an already highly emotional and stressful time. As mentioned earlier in this article, it is possible to make monthly instalments towards your funeral plan (from as little as £25 each month) as well as also having the option to pay the costs upfront.
However, it should be noted that if you do decide to pay for your prepaid funeral plan through instalments, it is likely that the cost will be higher. This is due to having to take in additional costs such as interest and administration fees that providers will likely add to a prepaid funeral plan. Nevertheless, this does depend on the funeral plan in question, as well as the duration. For example, if you pay for a funeral plan within a year, it is likely you will pay almost the same amount as you would have done if you had paid a lump sum. But, if you paid for the funeral plan over the course of 60 months, you can expect that this will add up to 30% extra in costs.

What is included in a prepaid funeral plan?


You should always check what is included exactly in any prepaid funeral plan cover you take out.

What a prepaid funeral plan will cover will be dependent upon the exact plan you purchase. This is because there may be additional fees if you want more things included in your funeral (for example, a larger coffin, entertainment, flowers). Nevertheless, a typical prepaid funeral plan may include the following:

  • Transportation to and from the funeral service
  • The cost of a Hertz or limousine vehicle
  • The cost of a coffin
  • Cremation fees
  • The cost of the funeral director
  • Ministers fees

It is important to remember that you should always fully read the terms and conditions of any funeral plan that you are considering to check what exactly is covered. This is because certain providers will not include things in their funeral plans such as headstones or funeral directors, or there could be caps involved in the plan relating to how much you can spend on minister or cremation fees. Being aware of this from the offset and before you start paying into a plan is essential, as you may find that you are not happy with the plan, or you are unprepared for paying additional fees at a later date.

Can anyone buy a prepaid funeral plan?

It is possible to buy a prepaid funeral plan for yourself, a parent, or a partner if they are over the age of 50.

Is a prepaid funeral plan safe?

Yes. When you take out a funeral plan the policy is protected by the provider. Your payments are placed into a trust fund or invested into a policy that then becomes payable when you have passed away. Providers are also regulated by the Financial Conduct Authority (FCA) via the Funeral Planning Authority (FPA) which ensures accountability of insurance providers as all must adhere to the FCA’s code of conduct. In the event of the funeral insurance provider going bankrupt, all FPA members pledge that they will look into paying for funerals covered by policies.

What happens I stop making payments for my funeral plan?

Most prepaid funeral providers will not pay out in the event of death if you have stopped making payments to the policy, however, it will depend on the insurance company in question, and it is, therefore, important to contact them directly with any concerns relating to payments.

Finding the right prepaid funeral plan

We work alongside some of the leading funeral plan providers in the UK to help you find an affordable plan to meet your funeral plan needs. Whatever your personal requirements, for example, whether the person plans to be cremated or buried, have a religious ceremony or not, we can help to find the right funeral plan for you, helping to make the process of finding the perfect plan as pain free as it possibly can be, by comparing plans on your behalf from the UK’s leading providers, making it an altogether less daunting task to carry out. With certain providers, we may also be able to offer limited discounts or cashback up to £100.
As we work with several leading funeral insurance specialists in the UK, you are able to get the best price for you or someone close to you. We save you the hassle of having to go through each individual funeral plan company and compare the prices, as we know how time-consuming and stressful it can be.
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