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.

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.

How to pay for your funeral plan

The payment options for a funeral plan can be tailored around your budget to make sure that it is always affordable.

Your choices include:

  • Paying for your funeral plan outright in one payment
  • Splitting your funeral plan costs into monthly payments for up to 3 years and pay no interest at all on your payments
  • Pay a low deposit and then split your costs into monthly payments, up to 5 years