Three Things You Need to Know Before Getting a Funeral Plan

On average, a funeral in the UK can cost around £4,000. Currently, about one-fifth of all funerals are funded through a funeral plan. Anyone who’s at least 50 years old can get a plan. The purpose is to arrange for one’s own service or arrange for someone else’s – usually a loved one. This way, relatives of the person who passed won’t have much to worry about.

A funeral plan will cover most of the costs associated with a funeral service. There are instances when you can also pay for a plan that will cover additional third-party services such as paying for a minister. Keep in mind, however, that a funeral plan isn’t your only choice. There are instances when it may not be the most suitable option. In line with that, here are three things you need to know before you get one.

The value of a funeral plan depends on your needs and circumstances

People who are financially able to pay for a funeral at any time may not need a prepaid plan. But, according to, prepaying puts you in better control over your finances. Also, having a plan reduces the emotional and physical turmoil your loved ones will endure preparing for a funeral.

Another good thing about getting a plan is that it’s generally protected against inflation. However, third-party expenses aren’t. So, if you decide to get cremated, the cost by the time you die will have increased and exceeded the amount your plan can cover.

There are inclusions and exclusions

Most providers today allow you to choose between getting cremated or buried. General expenses are the same, but add-ons can vary. Before buying a plan, you need to understand the inclusions and exclusions. Typically, you’ll find the following included in a plan:

  • Transporting the body to the funeral home
  • Coffin and hearse
  • Laying out the body for visits
  • Personnel from the funeral home

In general, most plans won’t cover the cost of cremation or the burial plot. Services during the wake such as food, flowers, and funeral notices aren’t included either.

A funeral plan won’t offer the same protection for your money as a regular savings account

The funeral plan market isn’t state-regulated. However, there’s a private entity that establishes the general guidelines and rules for providers. In a savings account, you get from a bank, there’s a minimum amount protected by the government in case the establishments go bankrupt. However, what is good to know is that there have been some discussions of doing the same for funeral plans.

If you’re thinking of buying a funeral plan, always choose an FPA-registered provider. Funeral providers invest the money you pay in a trust fund or insurance policy for safeguarding. You may want to ask the provider how they invest the money, so you know what to expect. So what will happen if the provider goes bankrupt? The FPA will ensure that your funeral still gets delivered by other providers. It also depends on the contract details, which is why it helps to understand the details before paying for the plan.

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