Best Prepaid Funeral Plans
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The cost of a funeral is steadily rising in the UK. Funeral expenses, coupled with other associated costs of dying can place untold stress on family members when you die, if plans have not been put in place to pay for your funeral.
Of course, any death also comes at a time when the family is grieving, and may also be trying to sort out other matters related to the person’s death. Therefore, for those who want to remove the financial and emotional stress for loved ones, prepaying for your funeral remains one of the best options on the table.
Although death is never an easy subject, we believe it’s incredibly important to know how your funeral will be paid for to avoid creating financial pressures for those left behind after you die. Plus, a funeral plan will give you control over your final wishes and ensure you lock in current prices, which will most certainly be lower than what a funeral will cost in the future.
In our following guide, we’ll talk you through some of the best prepaid funeral plans available in the UK to help you make an informed decision.
Prepaid Funeral Plans UK – An Overview
Prepaid funeral plans allow you to pay for your funeral in advance, either through monthly payments or by paying a lump sum. There are many providers to choose from, just as there are many plans depending on the type of funeral you’d like, and how much you feel comfortable spending.
A great place to start is to decide whether you want a cremation or a burial, as either option has vastly different costs associated. From there, you need to think about the level of funeral you want, from something small and basic through to a grand send off.
As you might expect, the more extravagant the funeral, the more expensive it will be. The good news is that many straightforward funeral plans also exist to keep costs to a minimum, offering plenty of choice across the board.
With a funeral plan, the features included are mostly geared towards the funeral itself. Although, not all costs will be covered by the provider. This is why it’s important to do your research, including reading through the small print of any agreement to avoid any nasty surprises for your loved ones.
Read more: Compare Funeral Plans
How Much Does A Funeral Cost?
Depending on whether you opt for a cremation or a burial, the typical cost for a funeral in the UK ranges between £1,554 and £4,383. Though do be aware this is just the cost of the funeral itself, and not the total cost of dying which SunLife states is around £8,864.
Given the option of paying monthly or paying upfront, it’s always going to be cheaper to pay for your funeral upfront. Furthermore, while researching different funeral providers, we found the total cost of a prepaid funeral was more than double when paying monthly in some instances.
Remember, a funeral plan will typically not cover aspects such as a headstone, burial plot, funeral notices, embalming, flowers, catering costs for the wake or doctor’s fees. Therefore, you may need to ensure other financial arrangements are made to cover such fees.
Funeral Planning Update – UK Funeral Plans Are Now Regulated By The FCA
For those yet to take out a funeral plan, you may be pleased to know the industry is now regulated by the FCA as of July 2022. This means that if you take out a funeral plan with a regulated provider, you have far more rights as a consumer should you be dissatisfied with the product you are sold.
Also, regulated funeral firms must act in accordance with guidelines set out by the FCA, such as avoiding pressure sales tactics, and avoiding selling poor value for money products.
The FCA has also issued a warning to avoid Unique Funeral Plans and Empathy Funeral Plans, as neither have FCA authorisation. Here at Retirement Expert, we also highly recommend that you check if the funeral provider is FCA authorised before taking out a plan.
In our list of the best prepaid funeral plans below, we’ll also mention any popular providers who are no longer offering prepaid funerals at this time due to the FCA regulation change.
For some providers, they have temporarily suspended offering plans while they await approval, and for others, they have ceased trading altogether. So we’ll keep you up to speed on where things stand at the time of writing.
Age-Co Prepaid Funeral Plans
Age Co stopped selling prepaid funeral plans in June 2022 due to the FCA regulatory changes. However, a message on their website states they do plan to start selling prepaid funeral plans again shortly. The new product is expected to be available in late 2022, although full details have not yet been released.
Avalon Prepaid Funeral Plans
Starting from: £1,485
Pay per month available?: Yes
Avalon prepaid funeral plan types:
- Cremation Only Plan – £1,485
- Celebration Plan – £2,795
- Standard Funeral Plan – £3,745
- Plus Funeral Plan – £4,095
- Premium Funeral Plan – £4,345
Co-Op Prepaid Funeral Plans
Starting from: £3,225
Pay per month available?: Yes
Co-Op prepaid funeral plan types:
- Simple Plan – £3,225
- Bronze Plan – £3,735
- Silver Plan – £4,150
- Gold Plan – £4,460
Golden Charter Prepaid Funeral Plans
Starting from: £1,749
Pay per month available?: Yes
Golden Charter funeral plan types:
- Basic Plan – £1,749
- Value Plan – £2,895
- Standard Plan – £3,495
- Select Plan – £3,850
- Premier Plan – £4,099
Golden Leaves Prepaid Funeral Plans
Starting from: £1,450
Pay per month available?: Yes
Golden Leaves funeral plan types:
- Copper Plan – £1,450
- Zinc Plan – £3,089
- Silver Plan – £3,594
- Gold Plan – £3,949
Pride Planning Funeral Plans
Starting from: £2,595
Pay per month available?: Yes
Pride Planning funeral plan types:
- Pride Practical – £2,595
- Pride Simplified – £3,595
- Pride Essential – £3,945
- Pride Plus – £4,195
Pure Cremation Prepaid Funeral Plans
Starting from: £1,595
Pay per month available?: Yes
Pure Cremation funeral plan types:
- Pride Practical – £1,595
Safe Hands Prepaid Funeral Plans
Safe Hands filed an FCA application quite late on, and a report showed it withdrew its application entirely when it became clear it was unlikely to be granted FCA approval. Sadly, many existing Safe Hands customers lost the money they invested. While this is of course bad news for those who lost out, FCA regulations seek to protect new plan holders from the same fate.
What this does mean is that if you previously took out a Safe Hands funeral plan, unfortunately, you will need to look at getting a new funeral plan in place.
For your peace of mind, we strongly advise only choosing a provider on the FCA approved list, which continues to be updated as more firms are granted approval. Doing so will mean your money will be protected by the FSCS who offer financial protection if your funeral plan provider goes into administration after July 29th, 2022.
SunLife Prepaid Funeral Plans
SunLife previously had a number of funeral plans including a Direct Cremation Plan, Traditional Plan and Traditional Plus Plan. However, as of August 2022 new prepaid funeral plans no longer exist.
Instead, SunLife plans to launch a new type of plan that acts as an insurance to cover the cost of a funeral. A separate option will be available for those who would prefer a cash payout.
Once launched, the new SunLife funeral product will be known as the Protected Funeral Payout Plan. Prices will start at £11.37 per month.
Prepaid Funeral Plans FAQs
We know there’s a lot to consider when choosing a prepaid funeral plan. We’ve answered some of the most frequently asked questions below.
If you’d like us to cover any other aspects related to funeral plans, please leave us a comment on this article.
How Much Does A Prepaid Funeral Plan cost?
A prepaid funeral plan costs around £4,000. Although, we found plans starting from £1,450 which is for a cremation rather than a burial. On the whole, cremations are much cheaper than burials, so it may be worth considering a cremation if cost is a concern to you.
Who Can Buy A Funeral Plan?
Anyone over the age of 18 can buy a funeral plan. Although, if you are paying monthly the funeral provider may set an upper age limit on when the full amount must be received by.
Are Prepaid Funeral Plans Safe?
Yes. Now that the FCA is regulating funeral plans in the UK, there is now a lot less room for error. Thankfully, it was only a handful of firms that caused concern even before the regulations were brought in. The vast majority of people will have their funeral plan honoured, so long as they meet the terms set out in their agreement.
Is A Prepaid Funeral Worth It?
If peace of mind is important to you, then a funeral plan is a worthy investment. Not only do you get to dictate your final wishes, but you’ll ensure no financial burdens are passed onto your loved ones. Prepaying for your funeral will also lock the costs in at the current rate, which could save a significant amount of money.
What Happens If You Die Without A Funeral Plan?
If you have sufficient funds in your bank account then it’s possible for your loved ones to arrange your funeral using your own money. Even if your bank account has been frozen, so long as the correct paperwork is presented, most banks and building societies will release up to £5,000 to cover the cost of the account holder’s funeral. Although, because the funeral was not paid for in advance, the cost of the funeral will likely be higher.
Those who die without a funeral plan or life insurance and also do not have enough money to cover their funeral will pass the cost on to their family.
What’s Wrong With Safe Hands Funeral Plans?
As noted above, Safe Hands fell into administration in March 2022. The company had around 46,000 customers, who will now not have their funeral plans honoured.
What happened is that Safe Hands applied late to receive FCA. It then withdrew its application, which Bloomberg states is because the FCA were unlikely to accept it. The collapse of Safe Hands is certainly unfortunate for existing policy holders, although due to new FCA regulations, the same scenario is highly unlikely to be repeated, which should offer reassurance to those yet to take out a funeral plan.
What Is The Best Prepaid Funeral Plan?
The best prepaid funeral plan is going to be unique to you. However, it should be something you can afford, that takes into account your wishes and is also regulated by the FCA.
How Do Prepaid Funeral Plans Work?
As the name suggests, prepaid funeral plans involve paying for your funeral in advance, either through monthly payments or by paying a lump sum in full. This means your family will not have to carry the financial burden of trying to pay for your funeral themselves.
Prepaid funeral plans also allow you to cap the cost of your funeral against inflation. The specific plan you opt for will give you a rundown of what’s included, so you can ensure you choose the right plan.
Retirement Expert – Senior Living Advice UK
We hope our guide on the best prepaid funeral plans has offered some much needed clarity to your decision process. The fact the industry is now regulated by the FCA should also offer extra peace of mind if you are yet to purchase a funeral plan, as many of the previous unscrupulous tactics have now been addressed.
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