Planning your own funeral might not be something you’ve given much thought to. But for some people, deciding what they’d like in advance and arranging how it will be paid for can offer reassurance that their wishes are known.
One way to do this is with a prepaid funeral plan.
A funeral plan allows you to arrange and pay for your funeral in advance. You choose the type of funeral you’d like, purchase a plan from a funeral plan provider and then, when the time comes, the services included within your plan are provided.
That sounds relatively simple, but funeral plans can still vary considerably. What’s included, how you can pay, the type of funeral provided and even what your family may still need to arrange can differ from one plan provider to another.
So, how do funeral plans work, and what should you know before choosing one?
What is a funeral plan?
A funeral plan is a product that allows you to plan and pay for your funeral in advance.
Rather than leaving all of the decisions about your funeral until after you die, you can make some of those choices yourself and have the peace of mind that your loved ones won’t be left making difficult choices.
Depending on the plan you choose, this could include decisions such as:
- Whether you’d like an attended or unattended cremation
- Whether you’d like a funeral service
- How much time you’d like for that service
- Whether you’d like traditional elements such as a hearse and pallbearers
- What should happen to your ashes afterwards.
You then pay for the plan either upfront or, depending on the provider and plan, through an instalment arrangement.
When you die, your nominated representative or family contacts the funeral plan provider, which arranges the services covered by your plan.
How do prepaid funeral plans work?
Although providers and plans differ, there are generally a few stages involved.
1. You decide what kind of funeral you’d like
This is an important place to start, so before comparing providers or prices, think about the funeral itself.
Would you prefer a simple, unattended direct cremation? Would you like a small number of people to be present? Is having a full service important to you? Or would you prefer something more traditional, with a hearse and funeral procession?
There isn’t one type of funeral that’s right for everybody.
Understanding what matters toyou makes it much easier to compare funeral plans on a like-for-like basis.
2. You choose a funeral plan
Once you know what you’d like, you can compare funeral plans offering those services.
Don’t rely on the headline price alone. Two plans described as “direct cremation”, for example, may not necessarily include exactly the same things.
Look at the detail. What’s included, what’s excluded, what happens to your ashes, whether there are any restrictions and whether there are circumstances in which your family could be asked to pay additional costs.
3. You decide how you’d like to pay
Funeral plans can typically be purchased with a single payment or through an instalment arrangement.
Available payment options depend on the provider.
If you’re considering paying by instalments, check:
- How long you’ll be paying for
- Whether an instalment charge or additional cost applies
- What the total amount payable will be
- What happens if you die before you’ve finished making the payments
- What happens if you miss payments.
These details should be clearly explained and made available for you to review before you purchase your plan.
4. Your plan documents are provided
Once your plan is in place, you’ll receive documentation explaining what you’ve purchased and what happens when the plan is eventually needed.
Keep these documents somewhere accessible and, maybe more importantly, tell somebody you trust that you have a funeral plan.
They don’t necessarily need to know every decision you’ve made, but they should know which company your plan is with and how to find the relevant information for when the time comes.
5. When the time comes, the provider is contacted
After you die, your nominated representative or loved ones contact the funeral plan provider.
The provider will then arrange the funeral services included in your plan.
This is one reason it’s important to understand exactly what’s included when you buy the plan. Your family should be able to see clearly what has already been arranged and what, if anything, they may still wish to organise separately.
What can a funeral plan include?
This depends on the provider and the particular plan you choose.
A funeral plan could include an unattended direct cremation at one end of the scale or a more traditional attended funeral at the other.
Depending on the plan, features could include:
- Collection and care of the person who has died
- A coffin
- Cremation fees
- An attended or unattended cremation
- Use of the crematorium chapel
- A funeral service
- A hearse
- Pallbearers
- A funeral procession
- Return of the ashes
This isn’t an exhaustive list, and not every funeral plan includes all of these things.
That’s why it’s worth looking beyond the headline price and checking the actual list of inclusions and exclusions.
What’s usually not covered by a funeral plan?
Again, this can vary between plan providers. Some of the things people associate with a funeral may sit outside the funeral plan itself.
Depending on the plan and provider, this might include out-of-hours collection, flowers, oversized coffins, newspaper notices, or other personal choices.
Rather than assuming something is covered, ask. A good question when comparing plans is simply:
“If my family wanted nothing more than what’s included in this plan, could there be anything else they would need to pay for?”
The answer can tell you far more than the headline price being advertised.
Are funeral plans regulated?
Yes. Since 29 July 2022, prepaid funeral plans in the UK have been regulated by the Financial Conduct Authority (FCA).
Funeral plan providers must be authorised by the FCA and have the appropriate permissions to provide and administer funeral plans. The FCA says its rules are designed to help ensure products meet consumers’ needs, provide fair value and that firms properly look after consumers’ money and use it to deliver funeral services.
Before buying a funeral plan, you can check the provider using the FCA’s Firm Checker HERE
If a provider isn’t appropriately authorised, you won’t have the same access to protections such as the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS)
Is the money in a funeral plan protected?
Rules govern how regulated funeral plan providers protect customers and make provision for future funerals.
Eligible customers of an FCA-authorised funeral plan provider may also be protected by the Financial Services Compensation Scheme (FSCS) if their provider fails.
For funeral plan claims, FSCS protection is currently up to £120,000 per eligible person, per firm.
If a funeral plan provider fails, arrangements should be in place to enable another regulated provider to carry out the funeral plan or to provide compensation. If those arrangements aren’t in place, the FSCS may step in for eligible customers.
When comparing providers, don’t be afraid to ask how your money is protected. It’s an important part of choosing a funeral plan.
How much do funeral plans cost?
There’s no single price for a funeral plan because the cost depends on what you’re arranging.
A simple unattended direct cremation will generally cost less than a plan that provides an attended service, while a plan incorporating more traditional funeral elements will usually cost more.
At Funerals with Grace, for example, our current plans range from:
- Direct – £1,595*(*T&C’s Apply) – An unattended direct cremation for people who would prefer a simple cremation without mourners present.
- Rose – £2,295*(*T&C’s Apply) – An attended option for people who would like a small number of people to have the opportunity to be present for a simple farewell.
- Bluebell – £2,895*(* T&C’s Apply) – An attended option offering a fuller service and greater flexibility around the farewell.
- Violet – £3,595*(* T&C’s Apply) – Our most traditional option, for people who value elements such as a hearse, pallbearers and funeral procession.
Price is important, but the cheapest funeral plan isn’t automatically the most appropriate, just as the most expensive isn’t automatically the best.
A useful question to ask yourself can be: “What am I actually getting for the price, and does it include what matters to me?”
Is a funeral plan the same as funeral insurance?
No. A prepaid funeral plan and funeral insurance are not the same product.
With a funeral plan, you’re arranging specified funeral services in advance.
Funeral or over-50s life insurance typically involves paying premiums for an insurance policy that pays a cash sum when you die, subject to the policy’s terms. That money can then potentially be used towards funeral costs, but the funeral itself hasn’t necessarily been arranged in advance.
If you’re comparing ways to make financial provision for your funeral, make sure you’re comparing like with like.
What happens if funeral prices rise after I’ve bought my plan?
One reason some people consider a prepaid funeral plan is the ability to arrange specified funeral services at today’s plan price.
However, it’s important to look at exactly which costs and services your particular plan covers.
A funeral can include additional choices and expenses outside the plan. If your family later chooses services or products that aren’t included, you may need to pay for them separately.
Check your plan documents carefully, rather than assuming every possible funeral-related cost is covered.
Who might consider a funeral plan?
A funeral plan won’t be the right choice for everybody.
You might consider one if you:
- Have clear preferences about the type of funeral you’d like
- Would like to make some of the arrangements yourself
- Would prefer to pay for specified funeral services in advance
- Want your family to know what you’ve chosen
- Value having the practical arrangements documented ahead of time
Other people may prefer to put money aside themselves or make different financial arrangements.
The important thing is understanding your options and choosing what suits your own circumstances.
How do I choose a funeral plan?
Start with the funeral you’d like, not the product you’re looking at. Ask yourself:
- Do I want anyone at the cremation?
- Would I like a funeral service?
- How important are traditional elements such as a hearse or procession?
- What would I like to happen to my ashes?
- How much am I comfortable spending?
- Would I rather pay upfront or spread the cost?
Once you’ve answered those questions, compare providers and plans based on what’s important to you.
Check what’s included and excluded. Check how your money is protected. Check that the provider is appropriately FCA authorised. And ask about anything you don’t understand before committing.
Funeral plans: frequently asked questions
Can I pay for a funeral plan monthly?
Many funeral plan providers offer instalment options as well as payment in full. Terms vary, so check the length of the payment period, total amount payable, any additional instalment charges and what happens if you die before completing your payments.
Can my family change my funeral plan?
A funeral plan covers the services specified in your contract. Your family may be able to make additional arrangements separately when the time comes, but these may involve additional costs. If there’s something particularly important to you, make your wishes clear when arranging your plan.
What happens if I move house after buying a funeral plan?
This will depend on your provider and the terms of your plan. If you move, contact your provider to update your details and check whether the change affects any aspect of your plan. At Funerals with Grace, we cover the whole of mainland GB, so even if you move, we’ll still be able to carry out your wishes.
Can couples buy funeral plans together?
Funeral plans are generally arranged for an individual, so couples wanting to plan ahead would usually each need their own plan. Funerals with Grace offer a £50 discount off each plan when you purchase two or more plans together.
How do I know whether a funeral plan provider is regulated?
You can check a funeral plan provider through the FCA’s Firm Checker HERE. Make sure the firm is authorised and has the appropriate permissions for funeral plan activities.
Take your time
Choosing a funeral plan is a personal decision, and there’s no reason it needs to be rushed.
Start by deciding what kind of funeral feels right for you. Then look at what’s included, how much it costs, how you’ll pay and how your money is protected.
At Funerals with Grace, we’re here to explain the options and answer your questions so you can make your own informed choice.
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