I've written this guide to help you understand how funeral plans work, the benefits and possible shortfalls. I also wanted to clarify the difference between funeral plans and over 50 life insurance, another option frequently used to help with funeral costs. Often confused with prepaid plans, this type of life insurance is not a funeral plan, however it can have a place for those on a tight budget. To find out more,
take a look at my guide to over 50 life insurance.
Compare Prepaid Funeral Plans: January 2026.
A funeral plan lets you arrange and pay for your funeral in advance and at today’s prices. Pre-arranging the services of a funeral director this way and making the arrangements now can make things easier for family when the time comes, both financially and emotionally.
The services included in the plan vary depending on the type you choose and the provider, and the cost which is based on today’s prices is fixed, so will never increase.
You need to be a UK resident and at least 18 years of age to apply, although some plan providers only accept customers who are 50 or older. Some may also have an upper age limit for customers paying by instalments, but other than that you are guaranteed to be accepted.
According to the industry trade body the National Association of Funeral Plan Providers (NAFPP), funeral plans funded around one in six of all burials and cremations throughout 2024, with 183,000 plans purchased last year.
If you're looking for a plan, most companies offer a range of basic, simple, standard and superior prepaid funeral plans that provide cremation or burial services. Some of the costs will be guaranteed, others will include an allowance towards them. This means there could be more to pay when the time comes.
The majority of prepaid plans will usually include and guarantee:
- Transportation and care of the deceased
- The funeral director’s services
- A cremation or burial service
- A hearse
- Either a guarantee or an allowance towards the third party costs
In addition, you can expect the following services depending on the type of plan you choose:
- A superior plan - a superior coffin, 2 limousines
- A standard plan – a midrange coffin, 1 limousine
- A simple plan – a simple coffin
- A basic plan – a basic coffin. These plans often include a smaller allowance for third party costs or nothing at all. In addition, the day and time of the funeral service may be limited or decided on by the funeral director.
Alternatively, you can choose a prepaid direct cremation plan which includes a simple unattended cremation without a funeral service, leaving the family free to say goodbye their way. Although this option is usually unattended, some plans allow a restricted number of mourners to attend the committal.
More about third party costs
Third party costs, also known as disbursements include the cremation or burial fees, minister or officiant’s fees and the doctor’s fees.
If these costs are guaranteed, there will be nothing more to pay for these services when the time comes. If they are paid for using an allowance which usually increases in line with inflation, there is a possibility there could be more to pay. It all depends on the size of the allowance compared to the third party costs when the time comes.
Did you know, that the 2025 SunLife Cost of Dying Report, showed that the average cost of a funeral in 2024 was £4,285
It's worth noting that prepaid funeral plans are designed to cover the basic elements of a funeral, but this does not include all funeral costs. Additional services such as embalming, memorial stones, stationary, flowers and the wake would need to be paid for separately.
And although plans include burial fees (or an allowance to help with these costs), this doesn’t include the actual burial plot.
Is my money secure with a prepaid funeral plan?
All prepaid funeral plan providers are required to be authorised by the Financial Conduct Authority (FCA), the regulatory body for financial services in the UK. Authorised companies must abide by the FCA’s rules and standards ensuring customers are treated fairly and their money managed responsibly.
Being regulated by the FCA means customers have access to the Financial Services Ombudsman should they wish to complain about the service they have received and the Financial Services Compensation Scheme should the plan provider be unable to meet their obligations.
To check your chosen funeral plan provider is FCA authorised, take a look at our table above. Or just go to the FCA’s website.