Monthly Payment Funeral Plans

If you are looking to pre-pay your funeral costs but prefer to spread the expense, you’ll be pleased to know that there are a number of options available to you, as many providers now offer a range of pay monthly funeral plans.

All providers offer instalments but some companies also give you a choice of ‘fixed monthly payments’ too which work in a very different way. Here’s how the two types of monthly payment funeral plans work:

Pay monthly Payment Funeral Plans

All plan providers offer monthly payment funeral plans with various instalment options; the majority allowing you to spread the cost of your funeral plan over 12 months with no additional fees. The company usually requires some form of deposit, then they divide the remaining balance over 12 months.

If you prefer lower monthly premiums, you can choose instalments over a longer period but this will incur additional fees. Quite simply the longer term, the higher the cost. Once you have agreed the monthly fee though that is what you will continue to pay, i.e. the instalment payments will not go up even if funeral costs continue to rise.

Many providers allow payments from 12 months to 15 years. It is important to understand exactly how much the total cost of the plan will be to ensure you are happy with amount; these figures are generally made clear on the documentation.

Depending on the company, your money will be paid into either an independently managed trust fund or a life insurance plan with funds being made available when the time comes. If you cancel the plan at any time after the free cancellation period which is usually between 14 and 30 days, your money will be refunded minus an administration fee which varies from plan to plan.

You are covered for your funeral services once you have completed all your instalments. If you were to die before the instalments are complete, the money you have paid to that point would be used as part payment for your funeral services and your family will be asked to make up any shortfall, but at today's prices; plus of course paying for only some of your funeral is better than them paying for all of it.

What you should expect to pay:

The following figures will give you an indication of how much you should expect to pay per month. Some providers require a deposit, but with the plan we recommend there is no deposit and some of the most competitive monthly payments which means you pay back less overall:

Monthly Payment Options
No of Years  Deposit  Monthly Payment Total Amount Payable Potential Savings
1 Year None £282.91 £3,395 £5,305
3 Years None £102.76 £3,700 £5,000
5 Years None £65.30 £3,919 £4,781
10 Years None £37.50 £4,501 £4,199
15 Years None £28.50 £5,131 £3,569

  • Potential savings are based on the predicted cost of a funeral in 15 years time; if you live longer the savings could be even greater 
  • once the plan is paid for there is nothing more to pay, no matter when it's needed
  • if you die during the payment period, all your payments will go towards your funeral and any shortfall made up by your family, but at today's prices (they will not have to pay for any price rises) potentially saving them £000's.

Funeral Inflation

The 2017 SunLife Cost of Dying Report said if prices continue to rise at the same rate as the last 10 years the average cost of a funeral will be:

£5,094 in 5 Years   |   £6,657 in 10 Years   |   £8,700 in 15 Years   |   £11,371 in 20 Years  |   £19,423 in 30 Years

Looking at these figures you can see that even with the additional charges of paying monthly you will potentially be saving money.

Fixed Monthly Payment Funeral Plans

You may think that the fixed monthly payment option is similar to instalments but in reality these two types of monthly funeral plans are quite different.

Your monthly payments are based on your age and the level of service you require. The premiums on ‘fixed’ pay monthly funeral plans do tend to be lower compared to the instalment option so can work for some budgets however they are payable for life or until your 90th birthday; basically whichever comes first.

Depending on how long you live, there is a chance that you can pay more in monthly premiums than cost of your funeral service.

You are covered for your funeral services after an initial period which with many providers is either 1 or 2 years. If you were to die during this initial period, all of your premiums would be fully refunded.

If you cancel the plan at any time after the free cancellation period which is usually between 14 and 30 days depending on the plan provider, your plan will be cancelled but you won’t receive anything back.

With ‘fixed’ pay monthly funeral plans, your money is paid into a life insurance plan and you are guaranteed to be accepted as long as you live in the UK and are between the ages of 50 and either 75 or 80, depending on the plan provider.

Other considerations

Your monthly budget may of course dictate the level of plan you can purchase, but when shopping a round for a monthly funeral plan you should also be mindful; that not all plans are the same and making the wrong choice could end up costing your family more money - that's why we recommend the Dignity monthly funeral plan, as unlike most plans they also guarantee your cremation costs at today's prices, not just your funeral director's fees.

Compare your choice of monthly funeral plans here and then get a quote.

Budget options from £3.90 a month

If a prepaid funeral plan is still beyond your budget you may wish to consider an over 50 life insurance plan; premiums start from £3.90 a month and you will receive a cash sum to help with your funeral costs - the main differences are that this will not pre-arrange your funeral and inflation could eat away at the cash sum over time, so it's real value could be reduced.

pay monthly funeral plans

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