How do monthly funeral plans work?

Nov 28, 2014
How do monthly funeral plans work?

I have come to realise over the last year that we are receiving an increasing number of enquiries for prepaid funeral plans from the over 40s and over 50s; a much younger age than the average funeral plan customer who is typically around 70 years of age.

This is a great sign that we are finally starting to open up about the subject of dying and putting plans in place to ensure our families are financially and to some degree emotionally protected when the time comes.

The majority of requests coming from this younger group of planners tends to be about how to spread the payment; after all the majority aren’t planning on using the funeral plan any time soon so they just want to pay a manageable monthly fee with the knowledge that everything will be ‘sorted out’ in the years to come.

I therefore thought it would help the Over 40 and Over 50 somethings and also the Over 60 and Over 70 year olds for that matter if I wrote a blog highlighting the different monthly funeral plans available for those looking to buy a plan on budget.

What are your monthly funeral planning options?
Regardless of your age all of the major funeral plan providers offer instalment options usually over 1, 3 and 5 years however different terms can often be arranged if you contact the provider or a company like ourselves. 

Most companies don’t add additional administration fees for instalments that are paid over 12 months however all plans incur extra fees when paying for longer periods. This is when the pricing can really vary so it is certainly worth shopping around.

Some companies also offer a Fixed Monthly Payment option which allows you to spread the cost over a longer period however this option is only available for the Over 50s.

Paying for a funeral plan by instalments
If you want to go down the monthly funeral plans instalment route, it helps to understand what your budget is and how much you have to pay as a deposit.

Some companies like Liberty offer a higher initial deposit of around £400 with lower monthly payments whereas other companies such as Golden Charter have a lower starting point of £49 however the monthly payments are slightly higher.

Therefore when comparing funeral plans, always look at the initial deposit, the monthly instalments and most importantly the total payment to ensure you are happy with the terms of the plan. 

Some plans are a lot more expensive when you work out the total cost over the instalment term due to the additional administration charges, however if the monthly payments are within your budget, this might be a price you are willing to pay.

All terms should be made very clear in advance so you can see which instalment option best suits your requirements and you will be covered for your services once payments are complete.

Monthly funeral plans for the Over 50s
You can of course choose any of the above instalment options,  but for the over 50s, some funeral providers such as Golden Charter, Golden Leaves and the Co-operative Funeralcare now offer a Fixed Monthly Payment Plan which is available for people between the ages of 50 and 80 (the upper age limit depends on the plan provider).

You pay a monthly premium based on your age and the level of service you require which is paid into a life insurance backed funeral plan and it’s worth mentioning that there is no deposit to pay with this option.

You are covered for your funeral services after an initial period of either 6 months or 2 years, again depending on the plan provider, however the premiums are payable either until you die or until you are 90.

So basically if you die within 3 years of taking out this type of prepaid funeral plan you will be covered for your funeral services however if you live a long and healthy life, you could end up paying more in premiums than the cost of your funeral services when the time comes. Having said that Golden Leaves are the only company to offer a rebate guarantee that ensures this does not happen, as they refund any additional costs back to the estate when the time comes.

The low down on cost
So now you know more about what is available I am sure you will want to know the cost. Well if you are just looking for an approximate indication of cost at this stage, you should expect to pay the following (don’t forget there will be an initial deposit to pay with the instalment plans):

Prices for a Simple Funeral Plan
12 monthly instalments - From £234 to £270 
36 monthly instalments – From £86 to £115
60 monthly instalments – From 56 to £79
Fixed Monthly Payment Plan – £22 to £64

Prices for a Standard Funeral Plan
12 monthly instalments - From £258 to £301
36 monthly instalments – From £95 to £128
60 monthly instalments – From £62 to £88
Fixed Monthly Payment Plan –   From £25 to £73

Prices for a Superior Funeral Plan
12 monthly instalments - From £283 to £329
36 monthly instalments – From £104 to £140
60 monthly instalments – From £68 to £96
Fixed Monthly Payment Plan - From £28 to £80

If you would like a personal monthly funeral plan quote, we can help compare the funeral plan market and explore your instalment options with you.

Ashley Shepherd is an Over 50s Personal Finance Expert

ashley shepherd

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