Prepaid Funeral Plans Pros and Cons in 2022

Updated 3rd May 2022

A funeral plan could be a good idea if you prefer to make your own funeral arrangements however prepaid funeral plans do have their pros and cons. For example, paying for your funeral at today’s prices avoiding inflation may seem like a great idea, but not so great if there are hidden extras.

To see whether a funeral plan is a good idea for you, we will help you understand:

  • What prepaid funeral plans are
  • Whether a funeral plan is a good idea
  • The pros and cons of prepaid funeral plans
  • The associated costs
  • Regulation and security
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What are prepaid funeral plans

Prepaid funeral plans allow you to make your funeral arrangements in advance, paying todays prices. Your money is held securely in a trust fund until required to pay for the services of a local funeral director, who will take care of everything when the time comes.

A prepaid funeral plan offers three main benefits:

  1. Saves money by avoiding rising funeral costs
  2. Removes the emotional and financial worry from your family of having to arrange and pay for your funeral
  3. Helps you arrange the funeral you want at a price you want to pay

Which may be why an increasing number of people think a funeral plan is a good idea. 

Are funeral plans a good idea?

Funeral plans could be a good idea and if you'd like to help family by arranging and paying for your funeral in advance at today’s prices. However, a funeral plan may not be a good idea if hidden extras mean there are additional costs when the time comes.

Not all funeral plans offer the same guarantees; the majority guarantee to cover the cost of the funeral director’s services but only include a contribution towards the cremation fees and minister’s fees which could leave the family with more to pay.

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What are the pros and cons of prepaid funeral plans?


  • Save your family money
  • Freeze costs at today’s prices avoiding any future price rises
  • Remove the worry of arranging your funeral from your family
  • Plan the type of service you want in advance
  • Shop around and choose the service you want at the price you want to pay
  • Guaranteed acceptance regardless of your health
  • Portable if you move within the UK (if you choose a national plan provider)
  • Reduce inheritance tax
  • Flexible payment options with affordable monthly instalments


  • Some funeral plans do not guarantee all the services included in the plan
  • Funeral plans are not yet regulated by the Financial Conduct Authority
  • Most plans will not provide cover if you move abroad
  • It will tie up your money
  • Personal wishes such as flowers or the reception are not included

Are funeral plans regulated?

Funeral plans are not regulated by the Financial Conduct Authority however the way your money is invested in a trust fund is. In addition, the Funeral Planning Authority is the recognised industry body that regulates registered plan providers, ensuring they comply with their strict rules and code of practice.

Only by choosing a funeral plan provided by a company that is registered and regulated by the Funeral Planning Authority can you be certain that the way your money is held and the service you and your family receive conforms with these rules.

Are monthly payment funeral plans a good idea?

Monthly payment funeral plans may be a good idea if you want to pay for your funeral in advance but prefer to stick to a monthly budget and spread your payments over a number of years. You may pay more for a monthly funeral plan however charges vary.  

Should I buy a funeral plan?

Whether or not you should buy a funeral plan depends on your personal circumstances and budget. If you want to arrange and pay for everything yourself, then buying a plan could be a good idea. Families can struggle paying for a funeral so making arrangements in advance could help.

Before you decide, consider reviewing all the options available to you, choosing a company that is registered with the Funeral Planning Authority and understanding how the plan works including what is and isn’t guaranteed.

Who pays for your funeral when you die?

There is no law as such that states who pays for a funeral when you die but if plans are not already in place to cover the cost, it is usually down to the family or perhaps the executor of the estate.

If there are savings available, then the bank will usually allow payment to be made on receipt of the funeral director’s invoice. If no funds are accessible, then the person arranging the funeral will have to make the payment initially and then claim any money back from the estate once it has been settled.

Are funeral plans worth it?

Funeral plans may be worth it as long as you are clear on what is included in your plan and that the provider is registered with the Funeral Planning Authority so your money is held securely.

What should I do now?

If you have just started looking at funeral plans and want to know more about the advantages and disadvantage, take a look out our what is a funeral plan section for more details.  

If you are ready to look at what leading plan providers have to offer, go to compare funeral plans.

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