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Prepaid funeral plans
What are prepaid funeral plans and should you buy one?
Updated 2 December 2024
A prepaid funeral plan lets you pay for your own funeral in advance, potentially saving your family stress and expense when you die. But while things like a coffin and burial or cremation fees are usually covered, prepaid plans often DON'T cover all funeral costs, so always check what's included. This guide helps you decide if you should get one.
With thanks to Simon Cox of Funeral Solution Expert for his contribution to this guide.
What is a prepaid funeral plan?
A prepaid funeral plan allows you to pay for the essential elements of a funeral in advance, either for yourself or someone else. Plans typically cover many (though not all) of the costs associated with a funeral, such as a coffin, funeral director, the cremation, and collection and delivery of your body.
Having a prepaid plan in place means those close to you will have less to organise when you die and less (sometimes nothing) to pay towards your funeral – a real boon for many.
The types of prepaid funeral plans you can get generally fall into three categories:
- Burial funerals. A funeral service with mourners where you are buried.
- Cremation funerals. A funeral service with mourners where you are cremated.
- Direct cremation funerals. A funeral service with no mourners where you are cremated.
Plans can usually be taken out by anyone aged over 18, though some providers say you need to be at least 50. If you want to pay for a plan with monthly instalments there might be an upper age limit (often around 80), after which you'd need to pay upfront.
More than 170,000 people took out a prepaid funeral plan last year. But don't rush into buying one before reading this guide, as they aren't suitable for everyone.
Don't focus on headline figures about the 'average cost of funerals'. Some plans are significantly more expensive than others, but there are plenty out there to choose from – meaning it's possible to find a plan that suits your wishes and keep costs down (you'll just need to be prepared to shop around).
Prepaid funeral plans: the six need-to-knows
Funeral plans can ease the financial and emotional burden on your family at a distressing time, but they won't be for everyone. Here's what you need to know...
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You pay today's price for a funeral plan, even if funerals are more expensive when you die
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If funeral costs rise in future, your funeral plan is protected against inflation.
For example, say you buy a funeral plan costing £3,000 today but don't die for another 15 years. If in that time the cost of everything goes up (which is likely) and the same funeral now costs £5,000, your loved ones won't be asked to pay the £2,000 difference.
However, some costs are considered to be from a third party (such as cremation fees). If these have risen and aren't covered in full by your plan, your loved ones might be required to make up the difference. They might have to cover even more depending on what other guarantees were or weren't in the funeral plan contract – so you need to check carefully what's included before taking out a plan.
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It's cheapest if you pay for your plan upfront or over 12 months (if interest-free)
Most funeral plan providers have various payment options. There are typically four:
- Pay a lump sum. If you can afford to do this, it's probably your best bet. That's because you're only paying for what the plan actually costs; the provider would pay for your funeral if you died tomorrow; and your money is protected.
- Pay over 12 months. This is the next-best option if you don't have all the money up front, but can afford to clear the full amount within 12 months. There's usually not a charge to do this, so in effect you can pay off your plan interest-free for a year. Many plan providers ask for a small deposit (usually less than £100) when setting up a monthly instalment plan but this will be deducted from the total you owe – it's not an extra charge.
The only difference to paying in full upfront is that if you die within the 12 months and haven't finished paying for the plan, the provider will refund your loved ones what you've paid, rather than provide the funeral. So this means your family will have to organise the funeral – plus they might be out of pocket if costs have risen since you took out the plan.
- Be careful. Spread the cost over up to 25 years. If you don't have the money upfront and can't afford to spread the cost over a year, you can choose to spread your payments over a longer period of up to 25 years (depending on the provider). You can usually only do this up to the age of around 80 – so if you're 75, the maximum length you'd likely be able to spread the cost over is five years.
But paying a plan off over multiple years isn't a good option for many as you're usually charged interest or fees, so you'll likely end up paying more than the funeral's worth. The only exception is if you die just over two years after taking out your plan (or one in some cases), in which case the provider must still pay for your funeral, even if you haven't paid off the plan.
- AVOID. Fixed monthly instalments until you reach 90 or die. Not technically a funeral plan, this type of payment structure is essentially an over-50s life insurance model (which we're not a fan of). Here you pay a fixed amount each month (it varies depending on your age) until you die or your 90th birthday, whichever's sooner.
Generally, your fixed monthly payments would be lower than paying by the 'up to 25-year' option above, but because you could potentially be paying over a much longer period, overall you'll likely pay much more than the funeral's worth – unless you die earlier than expected. What's more, with these types of payment plan if you cancel you're unlikely to get any money back whatsoever.
Be wary that over-50s life insurance models are sometimes subtly paraded as funeral plans, even though they're not. If a 'funeral plan' has a whiff of an over-50s payment model, it's best to avoid.
- Pay a lump sum. If you can afford to do this, it's probably your best bet. That's because you're only paying for what the plan actually costs; the provider would pay for your funeral if you died tomorrow; and your money is protected.
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A prepaid funeral plan WON'T cover the costs of a burial plot, headstone and more – which can amount to £1,000s extra for your loved ones
Many providers will let you choose between a cremation or burial funeral plan – and a number also offer direct (unattended) cremations.
But watch out for any costs that may not be included. For example, the biggest cost unlikely to be covered by a prepaid burial funeral plan is a burial plot and headstone, which can easily set back your loved ones £1,000s extra (sometimes even £10,000+) when you pass away.
Burial funerals typically cost a lot more than cremation services, so the level of burial fees a plan will pay is often capped. So if you do choose to buy a funeral plan and want to be buried, your family will likely need to put a significant amount of extra money towards a burial when you die.
Cremation and direct cremation fees can be capped too, depending on the provider or plan type.
So before you buy a plan, it's VITAL to understand what is and isn't included and make sure you budget for any extras. And unless you're really on a budget, if you want a funeral that allows mourners then it's best to avoid the very basic plans, as these are usually much more restrictive about the days that your funeral can be held.
What is / isn't included in a prepaid funeral plan
Usually included:
- Transport of the body to the funeral director's location
- Care of the body
- Visiting the body in the chapel of rest
- A coffin, hearse and funeral director personnel
- An allowance towards burial/cremation costs
- Delivery of ashes (not always included, so do check)
Sometimes included depending on the plan:
- A guarantee that crematorium fees will be covered (not capped)
- Minister's or celebrant's fees
- Limousines for mourners
Not usually included:
- Burial plot (£500 to £3,500)
- Any extra cremation fees (up to £1,000)
- Headstone/memorial (£1,000 to £3,000)
- Extra large coffins
- Funeral notices
- Order sheets
- Embalming (£150+)
- Flowers, catering and other costs for a wake (£250+)
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Prepaid funeral plans are protected, so your money's safe
The Financial Conduct Authority (FCA) regulates firms that provide and arrange prepaid funeral plans. This means:
- Your money's safe with an authorised provider. As you'll either get a funeral or you'll get a refund – even if the provider goes bust. That's because funerals paid for in instalments must go ahead even if you die before paying the final instalment. The only exception is if you die within 24 months of purchasing the plan, in which case the provider won't be required to pay for your funeral but must give a full refund.
There are some funeral plan providers, including Co-op and Dignity, which will pay out for a funeral if you die within two years of taking out your plan, as long as you've paid at least the first 12 months of instalments and your payments are up to date. Golden Leaves, another provider, even pays out if you die after making just one or two instalments.
- You're protected by the Financial Services Compensation Scheme (FSCS) should your plan provider fail. The FSCS can either ensure your funeral contract is carried out as planned, or pay cash compensation.
- If you have a complaint against a funeral plan provider or intermediary, you can refer it to the Financial Ombudsman Service. Escalating a dispute to the ombudsman is free for you to do.
- Your money's safe with an authorised provider. As you'll either get a funeral or you'll get a refund – even if the provider goes bust. That's because funerals paid for in instalments must go ahead even if you die before paying the final instalment. The only exception is if you die within 24 months of purchasing the plan, in which case the provider won't be required to pay for your funeral but must give a full refund.
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If you move home, contact your plan provider to see if you can change to a closer funeral director
When you buy a funeral plan, you'll need to tell the provider which funeral director you want to take care of the arrangements. If you later move from the area registered to your plan, you'll need to see if you can change funeral directors. Many plan providers allow this penalty-free, but some charge a fee.
Changing funeral director will also depend on whether your plan provider works with directors in the area you're moving to. The areas covered vary by provider, so it's worth checking this in any plan you're considering.
Plans typically specify how far a funeral director will go to collect a body. The mileage limit can vary, but what counts is whether there's a funeral director willing to take on your plan. Golden Charter, for example, works with a large number of directors, so its collection mileage is limited to 25, whereas Co-op directors will go up to 50 miles. Some, such as With Grace, have no limit on the number of miles they'll travel.
If your plan provider doesn't work with any directors in the area you're moving to, you'll be faced with having to cancel your plan – something which'll leave you out of pocket if it won't refund you in full without subtracting a cancellation fee.
Another important reason to inform your provider if you later move home is so you continue to receive correspondence from your provider. This will make it easier for friends/family to track down your provider after you've died.
Quick question:
Need help tracing a lost or forgotten funeral plan? Each week, the National Association of Funeral Plan Providers hears from dozens of families trying to trace a loved one's funeral plan or provider. See below for help finding a lost or forgotten funeral plan.
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You can save on burial plot costs if you share a family plot or opt for a woodland burial
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Burial costs can vary dramatically.
Buying a burial plot can cost just a few hundred pounds in remote rural locations. But in cities it can be £1,000s, and over £10,000 in some parts of London. This variation puts burial costs outside plans – although some will permit any spare allowance to go towards the cost of a plot.
Despite hikes in crematorium fees, cremations where you choose not to bury the ashes usually work out cheaper than burials because you don't have the same associated costs of buying a plot and paying towards site maintenance. And it's worth noting, you don't actually own a burial plot, it's more of a lease, usually up to 100 years. Then it'll need to be renewed – for a fee.
You can cut burial costs by £100s or £1,000s
- If you don't need to buy a plot because you've already got one, or are prepared to buy one to share, there will then only be £100s to pay for opening a grave. In some circumstances, total costs could work out less than cremations.
- You could choose a plot in a cheaper location. Even though some councils charge £100s more for non-residents, it could still work out cheaper.
- A natural burial or woodland site will be cheaper than a council-owned site, but you'll need to ensure materials used are biodegradable.
- A standard coffin sourced via an undertaker can cost about £350, but you may be able to source a biodegradable one for around £200.
- If you are a member of a mosque or a synagogue, there may be special arrangements.
- If you don't need to buy a plot because you've already got one, or are prepared to buy one to share, there will then only be £100s to pay for opening a grave. In some circumstances, total costs could work out less than cremations.
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Is it worth paying for a funeral plan?
Below we've highlighted when it might – and might not – make sense to buy a prepaid plan.
Of course, the big unknown is when you'll end up needing to use it. But that isn't a reason not to buy one. If you've paid off a plan in full, you know it's there when you need it. While if you die before you've paid off your plan, you'll either get all your money back, or you'll get the funeral you were paying towards, depending on how soon you die after taking the plan out.
Prepaid funeral plans: when are they worth it?
A prepaid funeral plan is likely to be worth it if... |
You have the cash to pay for one upfront, or you can afford to pay for one over 12 monthly instalments (as long as they're interest-free, as is often the case). |
| You think your family would struggle to cope with organising and/or funding your funeral when you die. | |
| You're unlikely to have enough money left in your estate to pay for your funeral when you die. | |
| Funeral prices rise after you buy the plan (as is likely over the longer-term). | |
| You want to be cremated and live in an expensive area, as many plans guarantee cremation costs. | |
It's a GREY AREA if.. |
You take out a plan and then move house within the UK. Many (but not all) providers let you choose an alternative funeral director closer to your new address, but there may be fees involved. |
| You're assessed for help towards care costs. If your council thinks you’ve bought a funeral plan to reduce your savings and avoid paying care fees, they may still assess you as if you still had the money. | |
A prepaid funeral plan is unlikely to be worth it if... |
Paying for it puts you in debt. |
| The number of years you're paying the plan off over means you end up spending more than the funeral is worth. | |
| You plan to move abroad. | |
| You agree to pay it off over monthly instalments and then miss one or more payments. | |
| You buy a restrictive plan that doesn't give you the funeral you want. | |
| Funeral prices fall after you take the plan out (though this is fairly unlikely in the long term). |
How the cost of funeral plans compares to paying direct
It's possible to find a funeral that costs less than a similar plan – in particular, direct cremations can cost considerably less at the point of need than they do as part of a plan. So if you think your family will be cool-headed enough to shop around and not succumb to upselling after a loved one has passed away, you may not need to buy a plan.
Be mindful that the cost of funeral plans can vary depending on where you live, and you'll likely pay more if you opt for a burial over a cremation.
Have a look at funeral prices in your local area and compare that to a few different prepaid plans to get an idea of whether they offer good value for money. But don't underestimate how much it'll be worth to your family to know plans are already in place when you die.
How to buy a funeral plan
Before you start thinking about which provider to go with, you need to think about what sort of funeral you want and the level of plan you want to take out.
The two key things to consider first are whether you want mourners at your funeral (if not, you might be limited to a direct cremation plan) and whether you want to be buried or cremated, both of which can have a significant impact on cost.
If you live in an expensive area (or just aren't sure how much a burial or cremation might cost where you live), look for a plan that guarantees the full cost of your burial or cremation will be covered. If you opt for a plan that has a maximum spend limit, your family may end up having to foot the bill if the full cost of your burial or cremation isn't covered.
You then need to decide what else is important to you – how long you pay the plan off over, whether you want a specific funeral director or a particular style of coffin, if mourners' limos are important to you, for example. These will all play a part in narrowing down your options.
Here are some key differences between common plan levels:
- A direct (unattended) cremation plan usually costs around £1,500. But there'll be NO mourners at your funeral if you opt for one of these, plus prepaid plans tend to work out more expensive than paying for a direct cremation at the time of need. Plans typically include collection of the deceased, cremation fees, and a simple coffin. There are some which cost nearer to £1,000, but you should check carefully what's actually included in these.
- A basic cremation/burial with mourners can cost anywhere between £2,000 and £3,500 and usually covers transporting and caring for the body, plus disbursements towards officiate fees and the cremation or burial costs. But cheaper plans often mean you're restricted on the time and day of the funeral service and you won't get a mourners' limousine. The coffin is likely to be very basic.
- A standard cremation/burial with mourners usually costs between £3,000 and £4,000 and gets you a choice of times and day of the week for the funeral, and a generally a better quality coffin, such as a wood effect coffin. You might get one mourners' limousine with some standard plans.
- A higher-level cremation/burial with mourners is likely to cost more than £4,000 and will include everything from the basic and standard packages, and usually includes at least one (if not two) limousines for mourners to travel in. You can also expect to have a higher-quality coffin, often wood veneer or sometimes even solid wood.
Which plan provider and package should you choose?
Once you've thought about how much you want to spend and what sort of funeral you'd like, you can start comparing plans. But with so many providers and packages available to choose from, knowing where to start can be a challenge.
So, we've reviewed the FCA-authorised providers and highlighted three you may want to consider if you're after a burial funeral, two to bear in mind if you want a cremation, and two to think about if you're contemplating a direct cremation.
However, do bear in mind:
- We've focused on nationwide providers that work with a large number of funeral directors.
- All providers featured guarantee that the full cost of your burial/cremation will be covered.
- The best plan/provider for you will depend on your location, budget and preferences, so always read the documentation to understand exactly what is and isn't included.
- This is meant as an overview of the plans on offer. As the services will be provided by different funeral directors, we haven't been able to take customer service into account here.
Also be mindful of plans which come with expensive cancellation fees (£250+ can be considered hefty). If you shop around you'll see there are providers out there which don't charge cancellation fees, some of which feature below.
| Provider & fee information | Key info |
Dignity
- Where: Eng, Wal, Sco, NI - Interest charged on monthly payments: Zero - Payout promise: Yes (1) - Cancellation fee: £0 - Joint policy: Yes - Fee for moving home: No
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Dignity allows you to build your own bespoke prepaid funeral plan. In all cases, cremation costs are guaranteed, so your relatives won't have to pay extra for the actual cremation. A hearse is also included as standard.
After that, you can choose the type of coffin (choice of two included, or up to circa £750 extra for more premium coffins), whether you want a celebrant (circa £200 extra), as well as adding contributions for extras, such as flowers and stationery. You have a choice of 46 crematoria across England, Wales, Scotland and Northern Ireland, so check there's one near(ish) where you live.
Dignity doesn't charge any fees for making changes to your plan, and you can pay monthly for up to five years at no extra cost, so it won't cost you anymore than if you'd paid upfront. |
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Price range: £2,099+ - Where: Eng, Wal, Sco - Interest charged on - Payout promise: Yes (3) - Cancellation fee: Free for 30 days, then £95 (4) - Joint policy: No - Fee for moving home: No
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Distinct Cremations is a cremation plan provider that delivers the actual cremation itself. Its simplest attended cremation plan costs £2,099, guarantees all cremation fees, and includes a 10-minute, family-led ceremony for up to 8 people (or pay £2,299 for a 20-minute service with up to 20 attendees).
Add-ons (which cost extra) include video-streaming the cremation service, musical tributes and witnessed scattering of the ashes. For an extra £100, you can even offset the cremation's carbon footprint with an eco-friendly coffin and a tree planted in remembrance.
Distinct Cremations allows its plan to be paid for over up to 10 years. But while spreading payment over 12 months is free, any longer than this and you'll face expensive instalment charges – something which can increase the total cost of a plan by £100s. |
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Price range: £2,219+
- Where: Eng, Wal, Sco, NI (5) - Interest charged on monthly payments: Free over 12 months, interest applies over longer periods. - Payout promise: Yes - Cancellation fee: £299 - Joint policy: No - Fee for moving home: Sometimes - Collection of body: 24/7 |
With more than 40 years of experience, Golden Leaves has three levels of cremation plan, ranging from £2,219 to £4,135, though each guarantees all cremation fees.
Its simplest attended cremation plan (copper plus) includes a 20-minute service with up to 20 attendees. You won't have a choice over the date and time of your cremation, though it'll take place in the morning. For more flexibility or a hearse/limousine, you'll need to pick one of its more expensive plans.
Golden Leaves guarantees delivery of your ashes with each of its funeral plans. |
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Price range: £1,545*
(*MSE blagged: You must quote aura50 at the telephone checkout to get this price.)
- Where: Eng, Wal, Sco - Interest charged on monthly payments: Zero - Payout promise: Clear outstanding balance or get full refund - Cancellation fee: Zero - Joint policy: Yes - Fee for moving home: No - Collection of body: 24/7 |
Aura's 'Perfectly Simple' direct cremation plan is available in mainland England, Wales and Scotland and comes with the guarantee your loved ones will not pay any extra fees or charges after you've passed.
Its plan covers all cremation fees, the cost of removing any medical devices, guarantees hand-delivery of the ashes within 21 days, and comes with free emotional and planning support from its 'Aura Angels'.
Normally costing £1,595, Aura is offering a £50 discount to those who quote aura50 at the telephone checkout (discount not available online currently), meaning you'll pay £1,545 for this plan.
You can either pay up front or spread the cost of the plan over 12 or 24 months. Paying in instalments comes at no extra cost. If you pay in instalments but die before paying off the plan in full, your loved ones have the option of clearing the outstanding balance or getting a full refund. There's no charge if you move home after taking out the plan, nor is there a charge if you (or your loved ones after your death) cancel the plan (you'll be fully refunded if you cancel).
Aura also offers a 'Two Together' package if you and somebody else both want a direct cremation – saving £100 over buying separately.
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Price range: £1,495*
- Where: Eng, Wal - Interest charged on monthly payments: £100 fee if plan paid over 24 months. - Payout promise: Yes - Joint policy: No - Fee for moving home: No |
Farewill keeps it simple by offering just one type of direct cremation plan.
The plan covers all essential cremation fees, and guarantees collection of the body from anywhere in mainland England or Wales, a coffin and delivery of the ashes to any address in mainland UK. It also makes a contribution towards the cost of removing any medical devices.
Normally costing £1,595, Farewill is offering a £100 discount to those who quote FW100 at the checkout when buying a plan (making the price £1,495). And if you buy two plans – for example, for you and a loved one – you'll get an additional discount of £150, meaning the price for two plans (with both discounts) would come to £2,940.
You can either pay up front or spread the cost of the plan over 24 months, though paying in instalments incurs an extra fee of £100.
Be mindful of the £300 cancellation charge, which is high compared to other providers.
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(1) After 13 months of up-to-date payments if paying in instalments. (2) After 24 months of up-to-date payments if paying in instalments. (3) After 12 months of having a 5/10-year plan (4). No refund if you've got a 5/10-year payment plan and more than 12 months have passed since taking out the plan. (5) If you're in Northern Ireland, you'll only be able to buy a 'silver' or 'gold' plan.
(1) After 13 months of up-to-date payments if paying in instalments. (2) After 12 months of up-to-date payments if paying in instalments.
'Green' funeral plan options are limited right now
If you're looking for an environmentally-friendly funeral plan, your choice is limited currently as not many providers appear to offer such an option.
The main exception is Distinct Cremations, which for an extra £100 will offset the carbon emissions from its funeral plan, including by providing a more environmentally-friendly coffin and planting a tree. Other than that, a few other providers also offer more environmentally-friendly coffins, as well as eco urns for your ashes.
What are the alternatives to a prepaid funeral plan?
If you don't have a prepaid funeral plan in place when you die, there are a few ways that your funeral could be paid for. These are the main ones:
- Your estate pays. In the first instance, your family should check if there’s enough money left in the estate to pay for your funeral.
- Your family pays. If they have the means, your family might be able to pay for your funeral.
- A public service funeral. If you have no family, or they can't afford to pay for your burial, your local council can arrange a public service funeral – but this is a no-frills option and you won’t have any choice in how, when or where the funeral is carried out.
- Direct cremation/burial. This is a cheaper alternative to a traditional funeral, but no mourners are allowed to be present and there's no funeral service of any kind.
- Help from the state. If you or your partner get certain benefits, you might be eligible for a funeral expenses payment to help pay for some funeral costs, including cremation/burial fees, death certificate and transport costs for the body and for mourners. You might also get up to £1,000 for any other funeral expenses, such as funeral director's fees, flowers or the coffin. How much you get depends on your circumstances.
Where can I go for further help?
If you need more help on funerals and their costs, you can get free and impartial guidance from the Government's Money Helper service or Citizens Advice.
You can also turn to FuneralAdvice.org – a consumer-orientated website set up by the National Society of Allied and Independent Funeral Directors in response to the CMA's criticism of the difficulties faced by the public in choosing funeral options.
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