Are Funeral Plans Worth It?

The rising cost of funerals means many people are turning to pre-paid plans to pay for their funerals in advance. There are advantages and disadvantages to taking out a funeral plan, and to help you decide whether a funeral plan is worth it, we’ve listed everything you need to know right here.

What Is a Funeral Plan?

Funeral plans are designed to help you meet the cost of your funeral when you die so your relatives don’t have to cover the cost themselves. Since funerals are expensive, funeral plans can bring you peace of mind that the financial side is taken care of.

A funeral plan can be purchased from a funeral-plan provider, or directly from a funeral director and you have the choice of either paying a lump sum or monthly instalments over a period of time. Funeral plans have certain services included and you can get different levels of cover depending on your needs: basic, standard and comprehensive. A comprehensive plan will be more expensive, however, may include a high-quality coffin, a limo procession and more. On the other hand, a basic plan will most likely be limited to what is covered but will be much cheaper in comparison.

Benefits Of a Funeral Plan

No Medical or Health Questions

UK residents who are 18 or over can take out funeral plans with no health questions to answer.

Fixed Costs

Many pre-paid funeral plans cover your selected funeral director’s costs as long as your requirements don’t change.

Reduces Stress

By taking out a pre-paid funeral plan, you relieve the stress of worrying about how your family will pay for your funeral when you die, and you also reduce the stress on your family when it comes to planning your funeral.

They’re Protected Against Inflation

If funeral costs go up (like they have done in recent years), your funeral plan won’t reflect it.

Your Funeral Your Way

With your funeral plan, you can also detail your wishes for the service itself such as any specific readings, music or flowers you would like. This gives you full control of your funeral and how you want it to be.

Disadvantages Of a Funeral Plan

The Savings Are Limited to Funeral Costs

Unlike other types of insurance plans, the savings you accrue in your pre-paid funeral plan can only be used for things related to the funeral.


There’s always a chance the cost of funerals could fall in the future, meaning you may have overpaid for your plan.

Reduces Disposable Income

Having to pay out a lump sum or commit to a payment plan can reduce your disposable income during tough times.

The Costs Don’t Cover Everything

A funeral plan unfortunately may not cover everything. You will need to check with your plan provider about what is included in your plan before agreeing to the plan.

Difference Between a Funeral Plan & Life Insurance

Funeral plans are specifically designed to take care of your funeral costs in advance of your death. When you die, the plan providers deliver every funeral service that was included in your plan. Choosing a funeral plan allows you to choose exactly the type of funeral you want to have and how much is spent. It protects loved ones from the difficult task of planning your funeral and safeguards against any future price increase.

Life insurance is a more generic plan. Just like pre-paid funeral plans, you make monthly deposits until you pass away or until your contract ends. It can be used by your loved ones to cover funeral costs, pay off debts, clear the mortgage or spend as an inheritance. How much money you can secure and the cost of your life insurance premiums will ultimately depend on the policy you choose and your circumstances

Life Insurance Funeral Plan
Pays out a lump sum to your family following your passing. Guarantees to cover the cost of your funeral services at the rate when you took out the plan.
Provides financial support for loved ones that they can spend however they like. Has no cash value but can cover the cost of your funeral.
You continue to make payments until the policy expires or until you die. Payments end when the funeral plan has been paid in full.
Requires underwriting to determine if you can secure cover. Guaranteed acceptance to all UK applicants and no medical or health questions.
Monthly payments are required whilst the cover is in place. You have the choice to pay in full or spread the cost monthly.


So, Are Funeral Plans Worth It?

A funeral plan is a great idea for anyone who wants to ensure cover for their funeral, no questions asked. It’s also perfect for making sure you get everything you want at your funeral, and you can even secure your funeral cost at today’s rate to protect you against inflation.

With funeral plans, all of the money must go towards the funeral, whereas with life insurance pay-outs, the family of the deceased can spend the money on the funeral, or they could choose to spend it on other things too. However, not everyone is eligible, and you could end up paying more for life insurance than what is paid out.

In conclusion, funeral plans are definitely worth it for getting your funeral your way and knowing exactly how much you’ll pay in total. It also saves your family from worrying about your wishes and protects them against the rising costs of funerals. However, if you’d rather your family gain a lump sum following your death to use however they like, another policy like life insurance may be your best option.