What are Funeral Plans? How do they work?

What are Prepaid Funeral Plans?

Funeral Plan Quotes

Funeral Plan Quotes

Funeral plans? Just a simple and cost effective way of paying for a future funeral today.  It may be for you, your parents, your children or even your staff.  These are some things to bear in mind if you’re thinking of taking out funeral plans.

Funerals can be expensive, and can cost several thousand pounds.  Many people worry that when they die, they won’t leave enough money behind for their funeral. With prepaid funeral plans, you pay for it in advance, so inflation becomes almost irrelevant.  You can, if you wish, make the detailed arrangements too.

How do prepaid funeral plans work?

You can pay either a lump sum or instalments to the plan provider, or to a funeral director. Your money is either invested into a trust fund with trustees, or in an insurance policy, which is then used to pay for the funeral whenever that turns out to be. Both methods aim to safeguard your money until it’s needed, ensuring that it’s used to provide the funeral you have paid for.

Plan providers can register with the Funeral Planning Authority (FPA) if they agree to meet its requirements. Registered providers will be subject to the FPAs arrangements for resolving disputes between its registered providers and their customers. However, there is no significant extra protection offered by membership as far as the public is concerned.


Questions to ask the providers of funeral plans, yourself and your adviser.

  • Can you to choose the funeral director?
  • What if your funeral director goes out of business?
  • What if the person the funeral is intended for dies away from home or abroad?
  • Can the funeral director arrange a funeral of a different standard from the one you have chosen?
  • Will there be any other expenses, and who pays those?
  • Can I cancel the plan if circumstances change – for example, if you’ve arranged for your spouse’s funeral but you later separate?
  • Are there any cancellation charges?
  • If I take an instalment plan, what if I die before all the instalments are paid?
  • Pay by instalments, how long for and is their interest?
  • Can I change the details of my funeral plan?

What are Funeral Plans – Top tips

  1. Make sure you have a written record of the funeral planning arrangements and keep it safe. Your family will need to know where your records are.  You should receive a plan confirmation.  Why not join Will Custodians Peace of Mind Service and keep details with your Last Will and Powers of Attorney?
  2. Make sure your family and any carers know you have already paid for your funeral plans and whom to contact.
  3. Check to see that the plan provider has a clear complaints procedure, and ideally is a member of the Funeral Planning Authority, the industry’s professional body. Members must follow its standards when dealing with you and when considering any complaints.

What are Funeral Plans?

Not strictly relevant – but a nice tune from Funeral For a Friend.  A brighter topic than what are funeral plans