Published by Joe Davine on
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The costs of a prepaid funeral plan explained

Prepaid funeral plans help make affording a funeral (whether yours or someone else’s) simple and manageable, allowing you to pay through monthly instalments and avoid a large bill to pay at the time. There are numerous different services or payment arrangements that can affect the funeral plan cost, so we’ve collected all the information to answer all your questions right here.

Why shouldn’t I leave my funeral to be paid for from my estate?

It’s pretty logical, to wonder why it’s worth getting one in the first place before thinking about how much a prepaid funeral plan costs. Depending on the value of what you will be leaving behind, it is an option to leave organising and paying for the funeral to the beneficiaries of your will. However, with the average funeral plan cost being upwards of £4,087, this can be a lot of money for people to find at once.

A prepaid funeral plan means that you can cover the funeral plan cost while you’re still around, and also makes things easier for your family. The company handling the plan will pay the funeral directors directly, taking some of the organisational responsibility away from those you love. There are also other advantages to taking out a funeral plan such as:

  • Avoiding inflation. With a funeral plan, you pay for everything included in the plan at today’s prices. This means that you don’t have to worry about the plan not fully covering what you want it to.
  • Easy organisation. Because the plan will be paid straight to the funeral directors, your family will have less to think about when organising and arranging the funeral.
  • Manageable payments. Funeral cover come with a range of payment options, from paying up front in one transaction, to spreading the funeral plan cost over many months/years, you can find a plan to fit around your situation.
  • Peace of mind. You’ll be able to make important decisions about your funeral and get some of the organisation done while you’re still around to make sure your family and loved ones can give you a great send-off.

How much does a funeral plan cost?

The answer to this question depends on which plan you’re buying and how you’re making the payments. It’s common for funeral prepaid plan providers to offer three or four differently priced options, starting at around £3,000 and rising to around £4,500. These range from a basic plan that covers the essentials such as the coffin, transport of the body, and the service itself, to more expensive options that include extras such as limousines for your family and more flexibility on timing.

The other thing that will have an effect on the overall price of your plan is how you pay for it, with the total amount increasing if you choose to pay over a longer period of time. If you pay either in one instalment or across twelve months then the cost will be the same, but if you pay over a period of more than a year you will end up paying more in total so make sure you know how much you’ll be paying overall.

However, paying for over many years can make sense as it keeps the monthly funeral plan costs low. Paying the full funeral plan cost over 12 months is likely to cost you in the region of £275 a month, whereas getting a basic plan over many years can be as little as £15 a month. While the latter option may mean you pay more overall, it is much more affordable on a month-to-month basis.

What isn’t covered?

A funeral plan will usually cover all the essentials for the day: the coffin, transport, cost of the service etc. The purpose of a funeral plan is to make sure that everything official is taken care of, so they do not tend to include coverage for:

  • Flowers
  • Extra transport for family and friends
  • Catering
  • Announcements in newspapers

Is there an initial fee?

Again this will depend on how you are paying for your funeral plan. If you are paying the whole amount up front, this obviously won’t be a concern. If you are spreading your funeral plan costs over 12 months then there is unlikely to be any sort of initial deposit payment, but there may be a small upfront charge of between £50 and £100 if you’re taking out a plan that you’ll pay for many years.

What if I die before the plan is fully paid?

In the unfortunate event you (or the person for whom you’re taking out a plan) pass away before you’ve fully paid for your funeral plan, one of two things will happen. Either the person looking after your estate will have to pay the remaining unpaid amount, or all the money you have paid in will be refunded minus a cancellation fee that varies between providers but is usually in the low £100s.

Is there a difference in price between cremation and burial funeral plans?

It depends, but not much. Some funeral plan providers will allow you to choose between a cremation and burial plan, although there is not usually a substantial difference between the cost of the two funeral plan options. A prepaid funeral plan will usually allow you to change your mind at a later date about whether you want to be buried or cremated.

How can I get a prepaid funeral plan?

That’s where we come in. We’ve reviewed the best options for you so you can find great plans with funeral plan costs to suit your needs, and know exactly what you’ll be covered for. Either get a quote now or have a read through our information to find the best deal.