What is a pre-paid funeral plan and why should you invest in one?

A prepaid funeral plan allows you to organise and pay for the main elements of a funeral in advance.

They’re widely used to save the bereaved family money and distress during a time of grief. Pre-paid plans simplify funeral organisation by ensuring everything is ready when needed. 

However, they may not suit everyone. If you’re unsure if a pre-paid plan is for you, a quick overview of what’s included, who they’re for, and their pros and cons may help you decide. 

What is included in a pre-paid funeral plan?

Pre-paid plans cover many funeral costs, such as:

• Collection and delivery of the body

• The coffin

• Funeral directors

• Cremation or burial fees

The types of prepaid plans fall into three categories:

• Burial funeral 

• Cremation funeral 

• Direct cremation 

How customisable are pre-paid plans?

Pre-paid funerals allow for all the customisation of a usual funeral. You can choose service type, personal touches, coffin or urn, procession, and participant roles. 

Each plan is tailor-fit to you so you don’t have to settle for the traditional or opt for a stripped back approach. 

The payment plans are flexible, you have the choice of paying in installments or making an upfront payment. 

However, it is worth noting that with pre-paid plans you may have to pay extra for additions. Typically, embalming, headstones over £1000, and wake preparations aren’t included in the plan. 

How old do you have to be to take out a plan?

Generally, you must be over 18 to take out a funeral plan. 

Some providers may require you to be over 50. 

For agreements where you pay in monthly installments, there may be a maximum age limit of 80 when taking a plan out. If you’re older than 80, you usually have to pay upfront. 

What are the advantages of a pre-paid funeral plan?

Awards peace of mind

Knowing that your funeral is sorted helps award peace of mind. You have the assurance that everything is planned as you wish, and is covered. Allowing you to design a funeral tailored to your wants and beliefs.

Can be more affordable 

Purchasing a pre-paid plan in advance means you avoid any future inflation. Whatever price you agree on for your plan is what it stays. For example, if funerals increase in price by 5% you won’t be affected.

Funeral plan providers also offer flexible payments. This can work out as more affordable compared to paying it in one full lump-sum. 

Eases the financial and administrative burdens on loved ones

A pre-paid funeral plan helps loved ones by removing the financial and administrative stress of planning a funeral. 

During a time of grief, trying to organise the logistics of a funeral can be overwhelming. Planning your funeral early helps your family. They can focus on celebrating your life instead of worrying about the practicalities. 

Allows for customisation

You can tailor-fit every aspect of the pre-paid funeral, including adjusting your payment plan depending on what suits you. Giving you ultimate personalisation. 

What are the disadvantages of a pre-paid funeral plan?

Not everything is covered 

There are costs involved in a funeral that aren’t covered by pre-paid plans. Burial plots and headstones, for example, are not typically included. These are big expenses, and can cost families thousands of pounds extra. 

Paying over time can incur interest fees 

Paying over several years often adds interest fees. This means you end up paying much more than the funeral is actually worth.  

Price caps 

Some plans also have price caps. Basic plans may restrict the number of mourners and limit date options for the funeral. So be wary if price capping means you can’t have the funeral you planned for. 

How to buy a funeral plan?

Whether you want a pre-paid plan or otherwise, it’s always best to discuss your funeral plans with a trusted, local funeral director. They can help you decide what plan is right for you and guide you through the purchasing process. 

Final thoughts

Pre-paid funeral plans are ideal for some. Particularly if you have a lower budget and are after a more simple ceremony. They provide peace of mind and free family and friends from financial worries. 

If you think it’s the right route for you, make sure you understand what you’re paying for and what each plan includes.