Category Archives: cheap prepaid funeral plans

cheap prepaid funeral plans

How Much Does a Prepaid Funeral Plan Cost in 2019?

how much does a funeral plan cost?

Cost of Funeral Plans

How Much Does a Funeral Plan Cost? It depends what you are looking for! The cheapest form of funeral plan is a Direct Cremation Plan – no ceremony just straight of to the crematorium.  Around £1600 will set one of those up, a little less for some – but with good reason!.

Just remember that costs are only going to go up, and a recent enquirer who died withing days could have saved on the £1,500 or so and used exactly the same undertaker when she died a few days later had she gone ahead with a funeral plan – but cost is not the main reason most people buy funeral plans.

What we would consider to be a proper funeral plan allowing for a family service at the crematorium would start at around £3000, averaging about £3,500.  But they are all a little different.  If it is much less than that, chances are it is one which pays just the undertaker and not crematorium, celebrant / minister or doctor.  Good schemes allow an index-linked £1,200 or so for those.  Some are “fully guaranteed” but you need to be aware that the meaning is not what you might think! So quietly ignore those can make a poor scheme look financially very attractive. And they do suck in a lot of people, so contact us on 0800 0588 240 before making a decision.

Upgrades are measured by the number of limousines required for the family.

A standard plan assumes the family can drive themselves.

A mid range plan adds one family limousine, a slightly possher coffin and maybe a few trimmings adding £300 to £400 to the funeral plan cost.

A top range plan allows 2 limousines, even posher coffin and more trimmings and adds another £300 to £400 to the cost of the funeral plan.

Of course, the sky is the limit and you can add to the cost of the funeral plan towards other extras, should you wish to do so. Be aware that Church Services and burials complicate matters – make sure you advise us of this so we can be sure that the cost of the funeral plan allows for them.

As Independent funeral plan advisers, it is our job to find the right plan for your needs and wishes at the right price.   We discuss the options and recommend the plan which we feel is the most suitable for you from across the market.  It takes about 5 minutes to chat things through, then we can tell you exactly “How Much Does a Funeral Plan Cost.”  Not just any old plan, but the one which we feel is best suited to your needs, location and pocket.

How Much Does a Funeral Plan Cost?

Funeral Plan Quotes

Funeral Plan Quotes

A good average price in July 2019 for a “normal” funeral plan is around the £3,300 mark, and sometimes we can give you a discount (where we can – please ask).

In terms of monthly payments over 10 years the cheapest (proper) funeral plan costs less than £20 a month.  An average simple plan a little under £35, with a small deposit.  “HOW MUCH!” we hear you exclaim!!  “We see that nice man on TV saying just a few pounds a month!”

Yes indeed, but those sort of plans are payable for many, many years, and they usually pay a fixed sum, with no inflation proofing at all.  They have other serious disadvantages too.   See our information on these plans, and if you want our expert advice, don’t buy one if you can possibly afford not too. Contact us to get advice on a proper prepaid funeral plan.

But the cost of the prepaid funeral plan isn’t everything…..

The cheaper end of the funeral plan market is dangerous water for those who are not experts. You can easily buy a plan which either upsets your whole family because they don’t get a chance to say goodbye.  Or you can saddle them with a large bill where you buy a so-called funeral plan which ONLY covers the funeral directors costs.  The cost of burial or cremation is then an extra, and that can be very substantial.   No funeral plan covers every possible expense, but a good one will cover the basic things so that any extras are not really essential.  If you consider limousines, flowers, memorial masonry, burial plots, printing etc etc. essential, we can include those, but the cost of the funeral plan will rise.

Direct Cremation Funeral Plans are low cost. But they just whisk you away, possibly hundreds of miles, and only the undertaker may be present at your cremation.

How Much Does a Funeral Plan Cost? Is a great question, but you need expert advice to get the RIGHT answer to the REAL question: “How much is the most suitable plan for me?”

Direct Cremation Plans: A Concern? Read This Before You Buy

Direct Cremation Plans reviewed

Direct to Cremation?

Direct cremation plans are the cheapest proper prepaid funeral plan. Some of the other low cost “funeral plan” options leave out minor details like the actual funeral. That is just one of the reasons you should ask for our advice! But good direct to crematorium funeral plans do cover all the costs detailed.  Remember that word “detailed” – small print is very important! BUT read on…. (or visit our Direct Cremation Plan Reviews page if you have already decided it is the right plan for your family: we keep a very close eye on the market so we can steer clients away from poor value plans, even if they do have very persuasive booklets and salespeople!)

In summary: a direct cremation plan is a funeral with no service or other family involvement at the time.  No reason you can’t have a celebration or wake afterwards though. It is just so non-traditional that friends and family make be deeply upset if it is unexpected. What we are talking about on this site is prepaid direct crem plans, but the comments for at need ones are the same.

Direct cremation plans are now being offered by an increasing number of firms, so although we don’t publish a separate list of them, we do have our internal list.  That is what we use to offer the best possible advice on choosing the right plan for you, your family and friends, and your bank balance!  Give us a call for advice – you can leave a message out of office hours.

So what is a direct cremation plan?

Funeral Plan Quotes

Funeral Plan Quotes

Direct cremation plans are where the undertaker collects the deceased and takes them direct to a crematorium of the undertakers choice.  The family have generally have no involvement in the process, which may well all be over before they find out.

The crematorium will rarely be the local one, the choice will be made by the funeral director who will be looking for the cheapest one within reach of their premises. Indeed, one major play is building its own crematorium for the purpose, which will be running 7 days a week 24 hours a day to cut costs further.  Generally speaking transport to the crematorium may be in a (nice) funeral van and not in a hearse.  It will also take place out of normal crematorium peak hours when costs are lower. Very often these services are run from a single location covering the whole of the UK. They will collect a few people, then arrange a trip to the most economical crematorium.  There is no disrespect, they will all be cremated separately.  You will also need to check what happens to the ashes and be clear whether or not you wish them to be returned.

Direct Cremation Plans: a summary.

So the direct to crematorium route is cheap but impersonal. Therefore it does run the risk of upsetting friends and relatives who want to say a more conventional goodbye. Of course, there is nothing to stop people having a memorial service after the event, but that may not be OK with everyone.

With normal prepayment funeral plans, it is possible for the family to make changes to the arrangements after death, to accommodate your or their wishes and needs. With a direct cremation plan, this may not be so easy as the funeral director may come from some distance away. They are likely to collect the deceased and – if the necessary certificates are ready – go direct to a crematorium. In many cases it will not be possible to change the arrangements at all.

We can certainly see that there is a market for direct crem plans. We do have concerns that they may – perhaps unexpectedly – cause great distress to family and friends who are left behind and are perhaps powerless.

Direct Cremation Plans

Direct Cremation Funeral Plan – use our enquiry form to the right.

So if you want the cheapest possible funeral plan, this is the one. But think twice before buying. Perhaps it would be better to put down a deposit on a more conventional funeral plan and pay the balance in instalments. Just our view!  Why not call us to discuss things? 0800 0588 240.  Or use the enquiry form to the right.

Direct cremation funeral plans.  Are they right for you and your family?

Monthly Funeral Plans: What Are The Options?

Monthly Prepaid Funeral Plans.

pay funeral plan monthly

Monthly Funeral plans

Not everyone can afford to pay for a funeral plan in one go, so most plans offer some sort of monthly payment plan.  You can, of course, go for the Over 50s style insurance which we dislike intensely.  But proper prepaid funeral can also be paid for on a monthly basis. With most prepaid funeral plans, monthly contributions only go on for a maximum of 10 years – then the plan is fully paid.  Even if you miss installments you rarely lose everything unless it is very early on. Contrast that with monthly premiums for Over 50s Plans which typically have to be paid until you are 85 or 90 and where you do lose every penny if you miss payments.

Ideally, you should be able to put down some money as a deposit, to reduce the monthly cost, but not all providers insist on one.  So what are the normal offers available?

Low cost monthly funeral plans.

Most plans can be paid in monthly instalments.

  1.  The cheapest type is the Direct Cremation Plan.  They are not really ideal, but some of them will allow you to upgrade them to a more normal plan allowing for a service later on.   That option allows for dramatically lower monthly payments.  But we need to make sure that you have a plan which can be upgraded.  In some cases upgrades can be done at almost the last minute.
  2. The next lowest in monthly cost is the group of plans which pay only the funeral directors fees.  The crematorium or burial costs have to be found elsewhere, as do ministers and doctors fees.  But again, the plans can be upgraded later. These can be used as a way of topping up one of the Over 50s life plans as they lose out to inflation – if you already have one.
  3. Moving up slightly are the new breed of cut down plans.   They are typically only perhaps £5 a month cheaper, but they seriously restrict where and when the funeral is held.  But if that fiver is more than you can stretch too, many can be topped up to the normal full plans below.
  4. The we get to standard funeral plans which cover the basics.  Typically, the funeral director is paid in full.  A substantial allowance is put aside (and inflation linked) to cover crematorium fees, ministers or celebrants fees and the doctors fees.  You can allow for limousines for the family and all sorts of fancy things if you wish. But we believe that the main thing is to cover the basics as far as you are able, and keep the monthly payments at a reasonable level!

We’re happy to chat through the options, without obligation, so why not give us a call!

Paying For Your Funeral In Advance: What Are The Pitfalls?

Paying for your Funeral yourself.

Sorting out the cost of your own funeral in advance has many advantages:

  • The family don’t get a large bill which typically has to be paid within 48 hours, before the funeral can go ahead.
  • There is less for them to fall out over, as you have made the arrangements.
  • The funeral has less chance of guilt-tripping the family into spending more money than they need to or can afford.
  • With funeral cost inflation running at around 6%, and savings earning less than 1%, a prepaid funeral plan is a good investment for the family.
  • It is one less  (major) problem for others to sort out.

Paying for your funeral in advance is a great benefit for those left behind.

paying for your own funeralBut it gives you the peace of mind that you have done the best that you can.  Other pages on this site explore the types of plans and the types of plans to avoid.  But if you would like a free no obligation discussion and independent advice, give the Prepaid Funeral Review Research team a call on 0800 0588 240 or use the enquiry form to the right to ask for more information or a call.

One thing which has caused problems in the past is people paying the funeral director in advance.  If they have the necessary Trust

fund

or another formal scheme in place, that is fine.  Many funeral directors are tied to Dignity or Golden Charter, for example, who have all the required protections in place.  Others may not understand the rules and could put your money (and their freedom!) at risk by not doing things properly. It is very rare for this to happen in the UK but it must be better to talk to us before making a decision.

You can pay for your own funeral in one go, or you can break the cost up into monthly payments spread over anything up to 30 years.  Interest-free instalments are available over 1, 2 or 3 years with top prepaid funeral plan providers.  The bigger the deposit you put down, the lower the payments each month, but some firms accept no deposit plans.   But we only recommend monthly payments where clients are sure they can manage the payments every month.  At least with a proper prepaid funeral plan, you won’t lose every penny if you are late with a couple of payments.

Paying for your funeral: what is covered?

Prepaid funeral plans are NOT all the same, which is why our independent advice is so important.   A typical plan will pay the undertaker, who currently charges around two-thirds of the cost of a typical cremation.  Then there is an allowance towards third party costs – things the undertaker pays for on your behalf.  the basic ones are the crematorium fees, the doctors’ fees and the cost for a minister or celebrant to run the service.

But some plans will only cover the funeral directors fees, leaving your family with an increasingly large bill to pay as the years pass by. Best avoided, unless both you and your family understand the situation, as are cheap cut down plans.  We can run through the options, there is no obligation.

Types of Funeral Plans – Which Ones To Avoid?

Types of Funeral Plans to Buy or Avoid.

TTypes of funeral plan explainedhere are many types of funeral plans. The trouble is many are not actually designed to pay for funerals. We understand more plans are sold which are not designed to pay for funerals than ones which are. Why on earth would anyone buy such a plan? Clever marketing and lack of understanding.   Read our article about them!

Types of funeral plan adviser and website.

Nearly all funeral plan advisers and websites are set up to sell one companies products. So everyone else is either ignored or show in an unfavourable light. The Research Team at the Prepaid Funeral Review are independent experts, and we review as many plans as we can get our hands on. Bear in mind that several of the leading providers let big sellers “white label” their plans.  That means same plan, different name and brochure and maybe a slight change in price.   But back to types of funeral plans. We’ll start off with plans to avoid (for most people.)

Types of Funeral Plan to Avoid.

There is a type of life insurance called “non-profit whole of life” which is unregulated and in our opinion should be banned. It forms the basis of many so called “Over 50s” plans often promoted by famous personalities. What most of them offer:

  • A fixed death benefit after (typically) the first 2 years.
  • No medical questions (there are none for proper funeral plans either.)
  • No cash value at any time.  So if you miss a couple of premiums before you die, you lose every penny.
  • Crucially, no inflation proofing, so after 12 years the plan you take out to cover the cost of a funeral today might cover half of the cost. And that is if funeral cost inflation reduces to 6%.
  • They are such bad value that some have now introduced a guarantee that they will return your payments in full when you die! Provided of course you haven’t lost everything by missing payments.

Types of Funeral Plans to Consider.

Insurance Linked Plans – relatively low monthly costs.

There are one or two of this type of plan which are genuinely set up to pay for a funeral, and the benefits to some extent linked with those costs. These are not our favourites, but they do have a real place in the market which we are not going to go into here. You still have the problem that payments must be kept up, but you are buying specific funeral services, so inflation is less of an issue.

Direct Cremation Plans – – much cheaper than standard plans BUT….

These are essentially funeral plans with no family attendance or service.  Most offer no possibility to view the deceased after they have been collected by the undertaker, typically in funeral ambulance. We are concerned that some family and friends will be shocked that they don’t get a conventional chance to say goodbye.

That said, they are the cheapest way to get a proper funeral plan and some providers will let you upgrade at any time up to the point where the undertaker is called out.

Funeral Directors Fees ONLY Plans.

This is where things start to get dangerous for those who don’t really understand what they are buying, or don’t make it clear to family. Roughly two thirds of a standard funeral is covered by this sort of plan. They do NOT cover “disbursements” or third party costs (in English). So the family will have to pay for the crematorium and service, for the doctors fees where relevant and for the minister or celebrant. At the moment, £1100 would be affair average for that, but costs are increasing all the time. Many Dignity owned crematoria charge £999 just for a basic cremation alone in early 2017, on top of the funeral directors fees etc! The average is around 30% lower.

Types of Funeral Plans: Cut Down Plans.

In an effort to sell cheap plans, most funeral plan companies now have these.   Again, they are fine if you and the family understand them. They save money by using out of hours times at crematoriums which might be as much as 50 miles away. So relatives just could have to travel 50 miles through rush hour traffic to get to a 9.30 am cremation. Far from ideal, especially as the savings are not vast. These plans are only available for cremations.

 Types of Funeral Plans: Standard Funeral Plans.

They typically cover the funeral directors costs, and make an index linked allowance towards the third party costs. So you have money towards cremation and a service and doctors fees, which in most cases should be enough. If there is a shortfall, then the family will need to pay the extra, but it should be relatively modest. These are our favourite sort of plans as they are not too expensive. They cover the basics so no one is going to have to find lots of cash when you die.

Like the following plans, these can be used for burials.  In those circumstances, the third party allowance goes towards the cost of digging and refilling the grave.  The cost of a burial plot is not included, they have to be purchased separately. Church services will nearly always cost more.

 Mid Range Funeral Plans.

Usually the same as the standard ones, with a limousine for the family added. Some will add extra bearers or a slightly posher coffin.

 Top of the Range Plans

Most add a further limousine, a posher coffin and maybe a spray of flowers and a few other fairly minor items. But you can add pretty much whatever you like.

Guaranteed Funeral Plans

All guaranteed funeral plans are not equal – have a look at our page on them.

 When the day comes:

When the day for dealing with the undertaker does arrive, your family can avoid being guilt- tripped into spending potentially vast amounts of money on extras which you would have hated them to waste money on!