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
||Total Amount Payable
- 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.