Prepaid Funeral Plans Pros and Cons

Prepaid Funeral Plans Pros and Cons – The cost of a funeral is rising much faster than inflation. Between 2011 and 2020 an average cost of a funeral increased from £2971 to £4163, a staggering 40% rise.  What is it going to be in 5, 10 or 15 years? Some people have savings plans or life assurance policies, but these have their own problems when using them to cover funeral costs.  Many people are now turning to prepaid Funeral Plans. Basically, paying for their funeral in advance.


So what are prepaid funeral plans pros and cons?

  • When you die your family won’t have emotional stress of arranging and paying for your funeral because everything is done for them,
  • Once you have bought your plan you will never have to pay more for those services you have chosen,
  • Most plans also let you upgrade along the way to include items you did not initially chose, i.e., two limos instead of one,
  • A big benefit of a prepaid funeral plan is that you pay at today’s prices,
  • Flexible payment options allow you to pay it all up front or pay it monthly over a period that suits your pocket,
  • All registered funeral plan providers must place your money in a whole of life insurance policy or an independently managed funeral trust fund, so your money is safe,
  • You get to choose the type of funeral you want and that is what you pay for,
  • Guaranteed acceptance without any requirements for medicals,
  • Registered Providers are approved by the Funeral Planning Authority (FPA),
  • Some plans will pay out even if all the premiums have not been paid,
  • Some Providers offer guarantees on their Plans,
  • Some providers off a money back guarantee in case you want to cancel the plan at any stage.


You also need to know the Cons.

  • Funeral Plans are not regulated so you could be mis-sold.

Registration with the FPA is opt-in only and not mandatory, so not all providers are regulated.

  • The cover from different providers varies and they each have different plans with different levels of cover, so you need to make sure your Plan covers everything that you want covered,
  • Unregistered funeral plan providers don’t have to place your money in any type of ‘safe’ fund,
  • It can only be used to pay for a funeral,
  • Burial plots are not included,
  • Some third-party costs may not be covered, check your plan,
  • If you are expecting to need a funeral plan soon, i.e., have an incurable disease, you might be paying for something you don’t need as prepaid plans are excellent at inflation proofing,
  • You may not be able to have the funeral at your family’s convenience,
  • You could be restricted to using a funeral director chosen by the provider.


There are some good providers and there are some bad providers so do your homework and go to a reputable, registered provider.

Don’t know where to start ?

If making a will is something you’ve been meaning to get around to, but don’t know where to start, speak to our client advice team on 0121 202 4714 and we’ll call you.