Prepaid Funeral Plans

What is a funeral plan?

A funeral plan is a way of pre-paying for a funeral in advance. This lets you fix in the price of the funeral at today’s prices. When the time comes, your family just has to make one phone call to a local funeral director. The funeral director would already be aware of the funeral plans and they would have been paid in advance.

With a prepaid funeral plan, you can choose between a cremation or a burial. You don’t have to choose straight away or in advance.

What is included in a cheap funeral plan?

Funeral plans vary from plan to plan. You can choose from a very cheap basic funeral plan, or go for a very extravagant plan depending on your preference and budget.

What is usually included:

  • All funeral director costs
  • A minister to conduct the funeral ceremony
  • A coffin
  • A hearse
  • Care of the body
  • Crematorium fees

Protect your family against rising costs

The price of a funeral in the UK is rising at an astonishing rate. When you prepay for a funeral plan, you guarantee that you lock in the price of a funeral at today’s prices.

So for example:

If you bought a funeral plan today at £3500 and the plan wasn’t used for 20 years. You wouldn’t be expected to pay £14,000 for the future cost. Your original funeral plan (which cost £3500) would cover all of these future costs.

Funerals are doubling in price, roughly every 8 years.

Funeral plans are sheltered from inheritance tax

When you buy a pre-paid funeral plan, it is completely outside of the reach of inheritance tax.

If you used this money as savings, with the idea of this being used towards a funeral then your family may have a nasty surprise. The money you put aside will form part of your estate, which may be subject to inheritance tax.