What Is A Funeral Plan

January 6, 2021

Plan today for the future is what a funeral plan does. Investing in a pre-paid funeral plan means you can pay for a funeral in advance, at today’s prices, saving your family a lot of emotional and financial stress.

Talking about funerals with loved ones is a challenging subject to broach at any time. Yet, notifying your family that your wishes are set in place and that you have covered the cost for your funeral will ensure you get the funeral you want.

Funeral costs in the UK in 2020 average around £4,975 for burial and £3,858 for cremation; these prices don’t include other services. These costs have risen by 65% and 58% respectively over the last decade, according to SunLife’s Cost of Dying Report 2020.

With the price of funerals likely only to rise, considering investing in a funeral plan is a sensible move. If they continue to rise at the same rate, a burial will cost £13,544 in 20 years time. Buying at today’s prices gives you control of the costs.

A funeral plan allows you to pay monthly instalments towards a total sum and takes into consideration your wishes and your choice of Funeral Director. By choosing a pre-paid plan, you beat inflation.

Benefits of pre-paid funeral plans

  • By paying upfront, you lock in today’s prices, potentially saving you money long-term by protecting you from future price rises.
  • Monthly payments make it much more affordable by spreading the cost from as little as £13.56 per month.
  • You can also pay the cost of your funeral as a single lump sum now.
  • You can choose whether you would prefer a basic cremation or ‘go all out’ – the choice is yours and is reflected in your monthly payments.
  • You are able to convey your wishes, such as readings, songs and flower arrangements, to the Funeral Director within your plan. 
  • If you don’t have savings or a lump sum that will cover the cost, a funeral plan monthly payment will help ensure you can afford the cremation or burial you’d like.
  • Relieves your family from one of the largest burdens, the financial burden, at a time of grief. 
  • Life insurance policies, rather than funeral plans, can take much longer to pay out, leaving the family to initially find the cost before being reimbursed at a later date. Funeral plans may payout within 48 hours, relieving the stress of loved ones having to finance the funeral. 
  • The price of your plan is guaranteed from the moment you take out your plan. If you pay by monthly instalments and you unfortunately pass away before the plan is complete, your family can pay the remainder, still saving on the price of your funeral.

Considerations to take into account

There are a number of things to take into consideration when choosing your plan and your requests for the service etc. In the Cost of Dying report, it is said that less than 1% of people knew their loved one’s final wishes.

  • Make your final wishes part of your funeral plan.
  • Flower arrangements can be very expensive. If you don’t wish for anything elaborate, you can leave your requests as part of your plan, saving the need for the family to fund something unnecessary. 
  • Would you prefer a solid oak casket or something far more simplistic? The cheapest option is to buy a cardboard one, but more extravagant coffins could cost you over £1,500. There are also options for a more eco-friendly burial or cremation. 
  • In contrast to direct cremation, you can notify your chosen funeral director about the service you would like, whether a church service or a small intimate gathering at the crematorium. Direct cremation costs less than a traditional cremation, in that there is no funeral service beforehand. The deceased is sent directly to the crematorium.
  • Your wish for a vicar, priest or humanist minister to hold a service at your funeral can be included. Are there any specific words you would like someone to read, a favourite poem or song lyrics? You can also choose any music you would like to be played too. 
  • What would you like for your wake? If you can talk to your family about this, consider asking for a quiet gathering after the service at a family member’s house to keep costs lower. There are many more options for a wake, of course.
  • Not everything may be covered by a funeral plan, such as flowers, burial plots or even limousines, so ensure you know what you are paying for. Basic plans will cover only the essentials, and keep costs lower, whereas others will offer extra options such as paying for minister fees, a hearse and limousines to follow etc. 
  • Blue Sky funeral plans offer five plans for you to choose from with a comprehensive guide as to what is included in each. 

Clearly, one of the family’s biggest pitfalls is underestimating the cost of funerals. By choosing a pre-paid plan, you can provide your family with peace of mind at a stressful time; you begin to save money as soon as you implement your chosen plan. 

Simply inform your family of your funeral plan and where any relevant documents are kept for when the time comes. You may wish to tell them about music etc or just leave any wishes within the written records ready for them to organise at the required time. 
Visit our plan comparison to start saving now and request a callback from one of our trusted advisors to help you with the process.