Guide: Funeral Plans - clearkey.co.uk
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Pre-paid Funeral Plans

A comprehensive guide on funeral plans
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What is a pre-paid funeral plan?

A pre-paid funeral plan is an agreement that you have with a funeral plan provider that allows you to pre-pay for your funeral in preparation for when you pass away.

When setting up a funeral plan you will pay today’s prices for the funeral, as well as having the freedom to arrange your own service. This should reduce any extra burden your family have when you pass, whether that be the cost or the stress of organising the funeral.

A funeral plan provider will provide a range of packages that cover different options available and can tailor the plan according to your wishes. The plans will be different depending on the provider, so it’s important to shop around and find which suits you best.

You can pay towards a funeral plan via monthly instalments with an initial deposit or as a one-off payment. This money is then locked in a trust, which is managed securely by the provider to ensure your money is safe.

What’s included in my funeral plan?

This will very much depend on the provider, but often they will follow a similar structure.
The most basic of plans will include covering the funeral director costs, coffin, transfer of the body, hearse, and bearers.

Then as you scale up through the packages, they will cover third-party costs, such as doctors, ministers, celebrant fees, and cremation fees. Then towards the more expensive plans, you can customise your plan to include services such as limousines for family member transport.

There might be an allowance built into the plan for flowers and changes in coffin styles.

It’s likely that most plans won’t include any personal choices outside the scope of benefits included It’s therefore important to understand what lies within the boundaries of the plan you take out.

If you are having a burial, your plot will likely need to be organised separately and the costs may not be fully covered – this is something you should discuss with your provider if you wish to have a burial.


Further reading: Life insurance or funeral plan?

Steps to taking out a funeral plan

01
Fill in a web application

Fill in a web application

02
Speak to an independent advisor

Speak to an independent advisor

03
Find a product that works for you

Find a product that works for you

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What are the benefits of a funeral plan?
Freezing costs at today’s prices.

Like many goods and services, funerals rise in cost.  Evidence from Sunlife’s 'cost of dying report 2021'  (https://www.sunlife.co.uk/funeral-costs/) shows that funeral plan prices outpace inflation. In fact, the report details that every year since 2004, funeral expenses have increased by thousands.  A basic funeral in 2004 would have cost just £1,835 according to the same report. In 2020 that same funeral cost £4,184 and by 2025 is estimated at £5,044. So in order to maximise savings against rising costs, the sooner you buy a plan the better.

Planning your funeral

You may like the idea that you get a say in your own funeral, whether that’s to add your own personal touches or to make sure that your family doesn’t go overboard on the expenses. By pre-planning your funeral, you will have the opportunity to plan your funeral however you like. Whether that’s the coffin, choosing cremation or burial, or even the location of the funeral; this can be all discussed with the plan provider to ensure you are celebrated in the manner you wish to be.

Reducing stress for family members

When a loved one passes away it’s often an incredibly traumatic and stressful time for family members and to have the added pressure of organising a funeral that reflects the life of a loved one, can be daunting and add additional stress to the organiser.

How much does a funeral plan cost?

Funeral plan costs differ between providers but roughly range from £2500 to £10,000+ depending on your requirements.

Can I get a joint funeral plan?

There’s no limit on the number of plans you can buy for others, so if you want a joint funeral plan or to cover other family members there’s nothing stopping you.

How do I get a funeral plan put in place?

There are a range of providers that offer pre-paid funeral plans, as well as local funeral directors who will work with the plan providers on delivering the funeral plan. Online You can enquire about a funeral plan quote with a funeral plan provider, via this website. Your details will be passed over to the specialist who will work with you to establish needs and budget. They will be able to work with you on getting a plan in place for you. All you need to do is submit some basic details and then take a call with a plan provider. Offline You should be able to set up a funeral plan with any local funeral director that you might find in your local high-street. They will likely work with one specific provider.
Get Started

How do I pay for the funeral plan?

There are two ways to pay for your funeral plan.
  1. In full
  2. In monthly installments (the length of time and deposit will vary depending on the provider and plan you choose)

Funeral Planning Authority (FPA)

It’s important that you make sure that your plan provider is part of the Funeral Planning Authority (FPA). They regulate the UK funeral plan market and ensure that the highest of standards are met.

Is my money safe?

All FPA members must go through rigorous checks when joining. They must evidence that the money you pay them for the plan is put into a trust. This ensures that anything were to happen to them as a company, your money is protected. Furthermore, all members of the FPA agree to cover any funerals paid to other members, should that member go bust. In short, if you take out a plan with a FPA member, your funeral will be covered.  

How will my family know that I have a funeral plan?

You should discuss any funeral plans you take out with your family to ensure they are aware of who to contact when the funeral needs arranging. If you are looking for a family members plan and you are not sure where to look, the FPA have this handy tool, which allows you to trace plans sold by its members;+ funeralplanningauthority.co.uk/trace-a-plan/  

Who administers my funeral?

  The plan you buy will be with the funeral plan provider. However, the funeral itself will be with your nominated funeral directors, be it local or wherever you choose. Most of the main funeral plan providers have ties to funeral directors across the whole of the UK.  

What happens if I die before my funeral plan is in place?

Different plan providers will have different rules to this, so it’s something you should discuss with them. For instance, there might be a clause that if you die after the 1st year and your plan isn’t paid for, then the provider will cover the plan without any more costs. But if you die in the first 12 months they may not. Again, it's best to ask before you buy.  

Checklist of things to double-check with the policy provider.

 
  • Are you FPA registered (We only work with FPA registered providers)?
  • What’s included in the plan and what’s not included?
  • What funeral directors do you work with in my local area?
  • What are the terms for the plan if I pass away before the plan is paid off?
Further reading: Life insurance or funeral plan?

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Disclaimer



Because we play by the book we want to tell you that...

1. We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you, that’s why we pass you onto an Expert.

2. A lifetime mortgage is a loan secured against your property. With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care.

3. With a lifetime mortgage you’ll still retain full ownership of your home.

4. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.

5. Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.

6. Unless you decide to go ahead, Mortgage Advice Bureau Later Life’s service is completely free of charge as their fixed advice fee of £1,295 would only be payable in completion of a plan.

7. ClearKey is an independent marketing website which only acts as an introducer to companies who offer advice on various financial plans, products and services.

8. Our partners are authorised and regulated by the Financial Conduct Authority.

9. ClearKey.co.uk are not authorised to give any advice and we are not liable for any financial advice provided by or obtained through a third party.

10. Life insurance products attract terms and conditions. Price information contained within this website are for illustration purposes only. You will receive a full policy document upon application which will set out the terms, conditions and limitations of cover provided under the plan.

11. Your home may be at risk if you do not keep up repayments. Think carefully about securing debt against your home. When consolidating existing borrowing be aware that extending the term could increase the amount repaid.



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