Prepaid funeral plans
What are prepaid funeral plans and should you buy one?
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/cremation fees are usually covered, plans often DON'T cover all funeral costs, so check what's included. Our guide helps you decide whether to 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 main elements of a funeral in advance. Plans typically cover many (though not all) of the costs associated with a funeral, such as a coffin, funeral director, cremation fees, and collection and delivery of the 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 boon for many.
The types of prepaid funeral plan available largely fall into three categories:
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Burial funeral. A service with mourners where you are buried.
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Cremation funeral. A service with mourners where you are cremated.
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Direct cremation funeral. A service with no mourners where you are cremated.
Plans typically come in a range of shapes and sizes, so you can pick the send-off fitting for you. A plan doesn't have to mean hearses, pallbearers and limousines, for example.
Funeral plans can usually be taken out by anyone aged 18 or over, though some providers limit plans to the over-50s. If you want to pay via monthly instalments there might be an upper age limit (often 80), after which you'd need to pay upfront.
Around 180,000 people bought a funeral plan in 2024 (either for themselves or for someone else), taking the total number of people in the UK with a funeral plan in place to 1.75 million.
But don't rush into buying a plan before reading this guide, as they aren't suitable for all.
What does 'funeral poverty' mean?
Funeral poverty refers to family and friends struggling to pay for a loved one's funeral.
When someone dies, you might be left trying to find £1,000, £2,000, £3,000 – even £4,000+ – to pay for their funeral. But many people would struggle to afford a sudden payment of this size, especially with the cost of living continuing to eat into budgets.
A funeral plan spares loved ones from much of this financial (and administrative) burden.
If someone dies without a funeral plan in place and you can't afford to pay for their funeral, you may be able to get support from the state or your local council, but this is often limited.
Don't focus on the 'average cost of a funeral'. As funeral plans vary wildly in price, the plan most suitable for you may be far cheaper than the average cost of arranging a funeral.
Prepaid funeral plans: six need-to-knows
Funeral plans can ease the financial and emotional burden on loved ones at a distressing time, but they're not for everyone. Here's what you need to know...
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Pay TODAY'S price for a funeral plan, even if funerals are more expensive when you die
If funeral costs rise in future, your funeral plan is protected against inflation.
For example, you buy a funeral plan costing £3,000 and live another 15 years. If in that time the cost of funerals goes up and the same plan now costs £5,000, your loved ones won't be asked to pay the difference when you die.
However, some costs are considered to be from a third party (like cremation fees). If these have risen and aren't covered in full by your plan, your loved ones might have to make up the difference. They might need to cover even more depending on what other guarantees were or weren't in the funeral plan – so check carefully what's included in a plan before buying it.
An alternative to a prepaid funeral plan is setting money aside in a savings account and letting your loved ones know what it should be used for.
But they'd have to arrange the funeral themselves and could still find there's not enough money to cover it in full. Plus, your family may not be able to access the money in time as they may have to wait for probate to be sorted.
An advantage of a funeral plan is that, once paid for, it doesn't towards your estate, so has no effect on how much Inheritance Tax (IHT) you need to pay (if any). Whereas savings do form part of your estate for IHT purposes.
Savings can also affect your eligibility for support with care home fees and benefits such as Universal Credit, Pension Credit and housing support.
Funeral plans on the other hand might not be counted by your local council if it's assessing you for help towards care costs. Councils look at your savings, income and assets to work out how much you need to pay towards your residential care. Check what savings limits your council sets.
With savings, inflation will also likely eat away at them over time. Plus, you may end up using the savings set aside for your funeral for unexpected costs that come up, such as boiler or vehicle repair.
Should I just put aside money for my funeral in a savings account?
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Plans are cheapest if you pay upfront or over 12 months (if interest-free)
Funeral plan providers tend to have various payment options:
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Lump sum. This is probably your best bet if you can afford it. That's because: you're only paying for what the plan actually costs; the provider would pay for your funeral if you died tomorrow; your money is protected.
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Pay over 12 months. The next-best option if you don't have the money up front, but can afford to clear the balance over 12 months. There's usually no charge to do this, so you can effectively pay off your plan in instalments interest-free. You might be asked for an initial deposit but this will be deducted from the total you owe – it's not an extra charge.
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Be careful. Pay over two to 25 years. If you can't afford the options above, you might be able to spread payments over a longer period, from two up to 25 years (varies by provider). You can usually only do this up to the age of around 80 – so if you're 75, you'd likely only be able to spread for five years.
But paying over multiple years usually incurs interest or fees, meaning you risk paying £100s or £1,000s more than the funeral's worth. The longer instalments are spread, the more you'll ultimately pay for the funeral plan. -
AVOID. Fixed monthly instalments until you reach 90 or die. This type of payment structure is essentially an over-50s life insurance model (which we're not a fan of). You pay a fixed amount each month, varying depending on your age, until you die or your 90th birthday, whichever's sooner.
Generally, the fixed monthly payments are lower than paying by the 'up to 25-year' option, but because you could potentially be paying over a much longer period, you'll likely pay far more than the funeral's worth – unless you die earlier than expected. And with these types of payment plan you're unlikely to get any money back if you cancel.
Over-50s life insurance models are sometimes paraded as funeral plans, but they're not. If a 'funeral plan' seems like an over-50s payment model, avoid.
What if I pay in instalments but die before these are fully repaid?Typically, if you've got a 12-month payment plan and die before the instalments finish, your loved ones will need to clear the balance for the funeral to take place. Alternatively, they can ask for a full refund, but would then need to organise the funeral themselves – and they might be out of pocket if costs have risen.
It works differently if you're paying over a period equivalent to two years or longer. Here, if you die two or more years after taking out the plan, the provider must still carry out the funeral, even if you've not finished the instalments. Some providers guarantee the funeral will take place after just one year of instalments.
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Plans DON'T cover the cost of a burial plot, headstone and more – which can be £1,000s extra
Watch out for any costs not included in a funeral plan. For example, the biggest cost unlikely to be covered by a prepaid burial plan is a burial plot and headstone. These can easily cost your loved ones £1,000s extra when you die.
Burial funerals typically cost far more than cremations, so the level of burial fees a plan covers is often capped too. Cremation fees can be capped as well, so check.
If fees are capped rather than fully guaranteed, treat the plan as being in deficit, as your loved ones will likely need to put extra money towards your funeral when you die. For example, if a plan's cremation fees are capped at £1,000, but your cremation costs £1,300, your loved ones will need to cover the £300 difference.
A minister's / celebrant's fees may be capped too, which you should bear in mind.
So before you buy a plan, make sure you understand what is and isn't included and budget for any extras. And unless you're really on a budget, if you want a funeral with mourners then it's best to avoid the very basic plans, as these usually restrict the number of mourners and which days the funeral can be held on.
What IS and ISN'T included in a funeral plan✅ USUALLY included
❓SOMETIMES included
❌ RARELY included (1)
Transport of body to funeral director
Guarantee cremation or burial fees will be covered in full
Burial plot (£500 to £3,500)
Care of the body
Minister's or celebrant's fees
Any extra burial or cremation fees (up to £1,000)
Ability to visit body (not with direct cremations)
Limousines for mourners
Headstone or memorial (£1,000 to £3,000)
Coffin, hearse, funeral director personnel
Extra large coffins (£100s)
Allowance towards burial or cremation costs
Funeral notices (£50)
Delivery of ashes (not with direct cremations)
Order sheets (£50)
Embalming (£150+)
Flowers, catering and other costs for a wake (£250+)
(1) Includes rough estimate of how much extra these items would cost.
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Funeral plans are protected, so your money's safe
The Financial Conduct Authority (FCA) regulates funeral plan providers, so:
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Your money's safe with an authorised provider. As you'll either get a funeral or you'll get a refund. That's because funerals paid for in instalments must go ahead even if you die before the final instalment (unless you die within 24 months of buying the plan, in which case the provider has the option to give a full refund instead).
There are some providers, including Co-op and Dignity, who'll pay out for a funeral if you die within two years of buying a plan, as long as you've paid at least the first 12 months of instalments. Golden Leaves even pays out if you die after making just one or two instalments. -
You're protected if the provider goes bust. The Financial Services Compensation Scheme means the funeral goes ahead/your money back.
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You can escalate a complaint about a provider. It's free to escalate a complaint about a provider to the Financial Ombudsman.
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Providers must be FCA-authorised or they'll be shut down.
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The FCA carries out regular checks on authorised firms.
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You've got 30 days after buying a plan to cancel penalty-free.
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You'll get a partial refund if you choose to downgrade your plan.
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Cold-calling is banned.
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Advertising standards are in place to ensure plans are sold fairly.
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Third parties, such as funeral directors, aren't allowed to receive commission for selling a funeral plan.
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Funeral directors have to display a standardised price list.
Other ways funeral plans are protected
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Moved home? Ask your plan provider if you can switch 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.
It'll also depend on whether your provider works with directors in the area you're moving to, so it's worth checking area coverage before buying a funeral plan.
Plans normally specify how far a funeral director will go to collect a body. This 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 provider doesn't work with any directors in the new area, you might have to cancel your plan – so you could be out of pocket if you can't get a full refund.
Another important reason to inform your provider if you move home is so you can continue to receive correspondence from them.
A funeral plan could particularly work out if you live in an expensive area.
Some large funeral plan providers price their packages to work across large swathes of the UK. So, if you're in a location where funerals are pricey, you could make a saving by buying a plan from a big provider.
Similarly, if a funeral's in a less expensive area, you could lose out with a funeral plan because burial and cremation costs behave in a similar way to property: they're all about location, location, location. So, if your funeral's going to take place in a less expensive area, you may find it cheaper to go with a local provider, rather than a company with a national pricing strategy.
Is the price of a plan affected by where I live?
Need help tracing a funeral plan? The National Association of Funeral Plan Providers hears from many families trying to trace a loved one's funeral plan. See how to find a lost or forgotten funeral plan.
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You'll save on burial plot costs if you share a family plot or opt for a woodland burial
Buying a burial plot can cost a few hundred pounds in rural locations. But in cities it can be £1,000s, sometimes £10,000+. This puts burial plot costs outside funeral plans – though some providers put spare allowance towards the cost of a plot.
It's worth noting you don't actually own a burial plot, it's more of a lease, usually of 100 years. Then it'll need to be renewed – for a fee.
How to cut burial costs by £100s or £1,000s
If you've already got a burial plot, or are happy to share one, it'll only cost £100s to open a grave. Such burials can work out cheaper than cremations.
Pick a plot in a cheaper location. 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.
Biodegradable coffins can work out cheaper than standard coffins.
Member of a mosque or synagogue? There may be special arrangements.
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 need 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. And if you die before you pay off the plan, you'll either get your money back or you'll get the funeral you were paying towards (depending on how soon you die after buying the plan).
A prepaid funeral plan is likely to be worth it if... | You have the cash to pay upfront, or can afford to pay over 12 monthly instalments (as long as they're interest-free, as is often the case). Your family would struggle to cope with organising or funding your funeral. There's unlikely to be enough money left in your estate to pay for the funeral when you die. Funeral prices are likely to rise (probable over the long-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 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. You pay for a plan over so many years that you spend more than the funeral is worth. You plan to move abroad. You pay in monthly instalments and miss one or more payments. The plan doesn't give you the funeral you want. Funeral prices are likely to fall (unlikely in the long term). |
How a funeral plan compares to paying at the point of need
Funerals can cost less at the point of need than through a funeral plan – in particular, direct cremations. So if you think your loved ones will be cool-headed enough to shop around and not succumb to upselling after you've died, you may not need to buy a plan.
Bear in mind too that the cost of funeral plans can vary depending on where you live, and that you'll pay more for a burial than a cremation.
So have a look at funeral prices in your local area and compare that to some prepaid plans to get an idea of whether plans 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
First up, you need to think about the sort of funeral you want and your preferred budget.
In terms of the funeral, do you want mourners at your funeral? And do you prefer to be buried or cremated? These decisions can have a significant impact on cost.
In terms of the plan, if you live in an expensive area (or 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. If the plan only makes a contribution to these costs, your loved ones may end up paying extra after you die.
You then need to consider: how to pay for the plan, if you want a specific funeral director or particular type of coffin, if you want limos, etc. This will help narrow down your options.
Here's what different budgets are likely to get you:
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£1,500 to £2,000. You're likely to be limited to a direct cremation, which means NO mourners at your funeral and often no opportunity to visit your body. Direct cremation plans typically include collection of the deceased, cremation fees, a simple coffin and delivery of the ashes – but that's it, meaning a 'no fuss' funeral.
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£2,000 to £3,000. You're likely to get a funeral with either an intimate service for a small number of guests or a longer service for an unlimited number of guests, collection and care of the body, and contributions towards officiate fees and cremation/burial costs (sometimes covered in full). However, you'll have little choice over the day and time of the funeral, the coffin will probably be basic, and there won't be any limousines.
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£3,000 to £4,000. Gets you a funeral with an unlimited number of guests, choice over when the funeral takes place, a higher quality coffin (such as wood effect) and all cremation/burial fees covered. You'll often get a mourners' limousine too.
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£4,000+. This is likely to get you a 'traditional' funeral service with all bells and whistles included. Think all of the above, plus limousines, full choice over when the funeral takes place, flexibility over the funeral procession route, and a high-quality coffin too.
Which provider and funeral plan should you choose?
Once you know the type of funeral you'd like and how much you want to spend, you can start comparing plans. But the large number of providers and plans can make this difficult.
So, we've highlighted some providers you may want to consider. Bear in mind:
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We've focused on nationwide providers with a large number of funeral directors.
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Most featured providers guarantee the full cost of the burial/cremation is covered.
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The best plan/provider for you will depend on your location, budget and preferences, so always check exactly what is and isn't included.
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Direct cremation plans will cover the least elements of all types of funeral plans.
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As the actual service will be provided by different funeral directors, we haven't been able to take customer service into account.
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Watch out for cancellation fees (£250+ is hefty). We highlight if cancellation fees apply.
It's worth discussing your ideas for a funeral plan with loved ones. While the choice of funeral type is ultimately yours, you may find your decision-making is aided by their input.
Want a low-key funeral with close loved ones rather than a full-blown affair? Some of our featured providers offer intimate funerals with no fanfare for a small number of guests.
Provider | Where | Types of funeral service | Cost | Key details |
|---|---|---|---|---|
UK-wide | - Small, family-led, up to 20 guests, no hearse or limos. | £2,449 to £4,135 | ||
Eng, Wal, Sco | - Family-led or celebrant-led. | £2,399 to £3,249 | ||
UK-wide | - Family-led or celebrant-led. | £2,600 to £2,775* | ||
UK-wide | - Family-led or celebrant-led. | £3,725 to £4,947 | ||
Eng, Wal, Sco | - 10-min funeral for 15 guests. | £2,295 to £2,895* |
Provider | Where | Can loved ones visit body pre-funeral? | Cost | Key details |
|---|---|---|---|---|
Eng, Wal, Sco | No | £1,645* (*MSE blagged: see key details for more) | ||
UK-wide | Yes – at any time, by appointment. | £1,645* | ||
Eng, Wal, Sco | No | £1,699 |
Provider | Where | Type of funeral service | Cost | Key details |
|---|---|---|---|---|
UK-wide | - Family-led or celebrant-led. | £3,725 to £4,947 | ||
UK-wide | - 'Traditional' funerals. | £2,995 to £4,160 |
'Green' funeral plan options are very limited
If you're looking to buy an environmentally-friendly funeral plan, the choice is very limited.
Distinct Cremations makes a donation to the World Land Trust each time one of its funeral plans is bought. And some providers offer more environmentally-friendly coffins or eco urns.
Consider the impact of a direct cremation on your loved ones
Direct cremations are an increasingly popular form of funeral these days – in fact most funeral plans bought in the past few years have been direct cremations.
Yet while direct cremations may be the cheapest type of plan and come with little fuss, do bear in mind there won't be any mourners present at your funeral. Of course, what you want is the most important thing. But it's also worth considering how your loved ones would feel.
The reason we say this is because we have heard anecdotes where families have been left upset upon realising it's not possible to attend the funeral of their loved one.
Check out your local independent funeral director too
Local independent funeral directors sometimes offer their own prepaid funeral plans. It's always worth checking – especially as local can work out cheaper.
Are there alternatives to a prepaid funeral plan?
If you don't have a funeral plan in place when you die, there are a few other ways your funeral could be paid for:
Your estate. Loved ones should check if there's enough money left in your estate to pay for the funeral.
Your family. If there's not enough money left in your estate, your loved ones could pay for the funeral (if they've got the means).
A public service funeral. If you have no family, or they can't afford it, your local council can arrange a public service funeral – a no-frills option where loved ones have little say.
Direct cremation/burial. 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 able to get financial support with the funeral costs, including cremation/burial fees, death certificate and transport of the body/mourners. You might also be able to claim up to £1,000 for other funeral expenses, such as funeral director's fees, flowers or the coffin. See: England/Wales │Scotland │Northern Ireland.
How can I find out more about planning a funeral?
If after reading this guide you need more information about how a funeral works, how to plan one and who the funeral plan providers are, one place to try is The Farewell Guide.
It has free resources and experts on hand to answer questions about the funeral process.
The Farewell Guide can also provide an overview of the funeral plan providers available, based on your preferences and location. It works with 90% of plan providers, so you can effectively use The Farewell Guide as a comparison site (the closest thing there is to one).
If you do use The Farewell Guide to compare funeral plan providers, remember to also practice the tips provided in this guide to help narrow down the most suitable plan for you.
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.
There's also 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.
Prepaid funeral plans FAQs
Extra details can be specified when you buy a plan. Depending on what they are – such as a specific musical performance – it may cost more. If they're not covered by the plan, your wishes should be noted for when the time comes and you'll need to let loved ones know there might be extra to pay.
Funeral plans can sometimes be altered without cost. But if you want to add extra features or upgrade plan, you'll likely have to pay. Do check the T&Cs before buying, as some cheap plans don't allow changes once bought.
FCA regulations mean you can downgrade a plan and receive a partial refund.
Delivery of ashes is often included in cremation funeral plans.
However, this isn't always the case. Some providers charge a fee – something that can cost around £100 (or more if you choose express delivery).
And while many plans do include delivery of ashes, it won't necessarily be to your door. Co-op Funeralcare delivers to your nearest Co-op funeral home, for example. So do check.
Even if something is written in the deceased's will that differs from the funeral plan – regardless of when the will was written – the funeral plan will go ahead unless the executors decide to go with what's stated in the will. Then it will be down to them to make the necessary changes and pay for any costs incurred.
First complain to the provider itself. If you're still left unhappy, you can take the complaint to the Financial Ombudsman. If the complaint is about something that happens once the plan is put into action, a relative can complain, although it's normally restricted to an executor or relative named on the plan.
If the complaint is about a funeral director (not plan provider), you can contact one of the two funeral director trade bodies: National Association of Funeral Directors or The National Society of Allied and Independent Funeral Directors.
While it varies by provider and plan, if you're paying by monthly instalments and miss a payment, you'll likely be given between 30 and 60 days to make the payment. If you still don't pay it, your plan will likely be cancelled and you'll (hopefully) get your money back, minus any cancellation fee.
If you're paying by ongoing fixed monthly payments (which we warn against doing), your plan could be cancelled and you'll receive nothing back.
Over-50s' life insurance plans are NOT the same as funeral plans.
We're not fans of over-50s' life insurance plans, as most people end up paying far more than they get out. There's also been misleading promotion over how much such plans deliver, especially regarding funeral costs.
Funeral plans are different. That's because you can pay upfront, or a set amount each month for a set period of time (typically up to five years or less) – so there doesn't have to be ongoing payments for life. Also, once bought, certain basic services you want in your funeral are guaranteed to be provided.
Furthermore, with over-50's life insurance plans, if you cancel you're unlikely to get any money back whatsoever – which isn't the case with funeral plans.
When you die, whoever is looking after your estate will need to notify the funeral plan provider or your nominated funeral director, who will in turn arrange and pay for the funeral. Therefore it's important to tell loved ones you've got a funeral plan. One of the best place to do this is in your will.
Fail to document it and when you die your loved ones might know who the plan provider is – or even be aware you had a funeral plan in the first place.
Providers will keep a copy of everything you've requested as part of your funeral plan, so as long as your loved ones know the provider they shouldn't have to track down any specific documents. But it's still a good idea to keep your own copy and ensure everyone knows where it is when the time comes.
Loved one got a funeral plan but not sure who the provider is or what the details are? Fill in the 'find my plan' form on the National Association of Funeral Plan Providers (NAFPP) website. Almost all authorised providers are part of NAFPP, so this can help track down a lost plan. If it doesn't, contact the remaining firms that appear on the FCA's plan provider register.
Of the roughly 183,000 prepaid funeral plans bought in 2024, around 62% were direct cremation funeral plans. And the average age of those purchasing funeral plans is 73, according to Co-op Funeralcare.
You can buy a funeral plan if you're terminally ill / receiving end-of-life care.
However, there are a couple of things to consider in this situation:
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What happens if you pay in instalments but die before clearing them? Many providers offer loved ones a choice between a full refund and clearing the outstanding balance if you're paying in instalments and die within a year (sometimes two) of buying a plan. So unless you pay in full up-front, there's a chance your loved ones may have to pick up the bill.
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Is it cheaper to pay for a funeral once you've died than buy a plan? Plans are meant to be a hedge against the future cost of funerals, not against the current cost of funerals – in fact, today's plans are typically more expensive than today's at-need funerals. So if you've only a few months to live, it may be cheaper to pay for a funeral once you've passed.
Can I plan every detail with a funeral plan?
Can I amend my funeral plan?
Is delivery of ashes normally included in funeral plan?
Can a will override what's written in a funeral plan?
How do I complain about a funeral plan provider?
What happens if I miss a monthly payment?
What is an over-50s' life insurance plan?
What if my family don't know I have a funeral plan?
What's the most popular type of funeral plan?
What if I've a terminal illness / will likely die soon?
Need inheritance planning help?
Cheap and free wills. Solicitor-drafted wills for low cost.
Inheritance Tax. Are you one of the few who'll pay it?
Ways to reduce Inheritance Tax. Learn how 'gifting' works.
Inheriting a pension. Many pensions can be passed on.
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