Guide to Prepaid Funeral Plans

At such a difficult time, knowing everything has been taken care of can be a huge relief to relatives and friends. No having to choose a coffin or second guess what type of service you would have wanted. No concerns about funeral costs or where the money will come from to pay for the service; it can all be included in a funeral plan.

What is a Funeral Plan?

Pre-paid Funeral Plans let you arrange and pay for a funeral at today’s prices, so you can save money and make your own decisions about your funeral arrangements, rather than leaving it up to your family when the time comes. 

Plans vary slightly depending on the provider however the majority typically guarantee to cover the cost of the funeral director’s services including guidance on all matters relating to the funeral; advice on registration, certification and all of the necessary documentation; transportation and care of the deceased; a coffin, hearse and the service. 

The level of cover will dictate the quality of the coffin and whether limousines are included for the family. 

In addition many plans incorporate an allowance of around £940 to £1,200 for third party fees which consists of cremation or burial costs as well as the doctor’s and minister’s fees. 

How much does a Funeral Plan cost?

The amount you pay for a funeral plan will depend on the level of cover provided. Most providers offer three levels of service; a simple, standard and superior plan costing between £3,500 and £4,500.

More basic funeral plans are available from around £2,800 but these will only cover the funeral directors services and not third party costs.

There are a number of payment options available to you when it comes to buying a prepaid funeral plan but this will depend on the plan provider.

  • Single upfront payment in full
  • 12 monthly instalments – this method of payment doesn't usually incur any additional administration charges so the total price you pay over the 12 months is the same as if you were paying in full.
  • Monthly instalments over a longer period – usually between 2 and 30 years. This payment option will almost certainly incur an admin charge so you will pay more for your funeral services, however full payment details will be made clear to you in advance so you can decide whether you are comfortable with the regular monthly premiums and total amount payable.
  • Fixed Monthly Premiums from £24.72 – with this payment option, your money is paid into a guaranteed life insurance policy.  Monthly payments are based on your age and chosen level of service and are payable either until you die or until your 90th birthday (whichever is sooner).  With some plan providers there is a chance you could end up paying more than the actual cost of the funeral.  It all depends on how long you live!

If you prefer to keep your payments low, Over 50 Life Insurance may offer an alternative solution to help pay towards funeral costs.

Is my money safe?

When comparing funeral plans it’s always worth choosing a company that is a member of the Funeral Planning Authority (FPA) as this will ensure you are protected by their rules and guidance. 

Depending on the company and your chosen method of payment, your money will either be held in trust, regulated in compliance with The Financial Services & Markets Act 2001, or a Life Insurance Plan which will be regulated by the Financial Conduct Authority (FCA).

Finally it is also worth checking that the company is a member of one of the following:

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