Exactly how much a pre-paid funeral plan will cost depends on the type of funeral ceremony, the Burial Park or final resting place that has been chosen, any aspects of the service that may vary and any additional memorial features such as headstones or flowers.

According to the Cost of Dying Report by SunLife, the cost of a funeral ranges on average from £1,628 for a direct cremation, to £5,440 for a traditional attended funeral with a mid-range coffin, limousine, flowers and other additional amenities.

SunLife’s figures are estimates, but to explain why they can vary so much, here is a brief guide to pre-paid funerals, what is typically included, what affects the price, why you should consider one, but also what alternatives are available instead.

What Is A Pre-Paid Funeral?

A pre-paid funeral is a payment plan that allows you to organise and pay for your funeral or a funeral for your loved one ahead of time.

It is not a savings account or a lump sum; you choose a set of services you want to have as part of your funeral, and it goes to a registered provider, who keeps the money in a trust fund and pays for the services that have been agreed to.

The plan will cover the services that have been agreed to even if they cost more than the price of the plan due to inflation or increased costs.

Funeral plans are regulated by the Financial Conduct Authority and have been since 2022, ensuring that you have peace of mind that your plan will be honoured and you have peace of mind that the price of the plan is how much you will pay going forward.

What Is Included In A Pre-Paid Funeral?

What is included as standard in a pre-paid funeral will vary depending on the particular payment plan, but typically includes:

  • A funeral service, funeral rite or Celebration of Life
  • A coffin
  • Funeral director support to manage the affairs of the deceased and to use their chapel of rest
  • Burial or cremation fees
  • Transportation, typically in the form of a hearse

It does not include everything; for example, posting a notice in a newspaper of record, floral wreaths, live musicians or anything related to a wake are typically not covered by a funeral plan as standard.

As well as this, a burial plot, headstone and counselling services following a funeral are sometimes part of a funeral plan but can also be excluded or cost extra.

What Affects The Price Of A Funeral Plan?

A funeral plan has always covered the fundamental basics of a funeral, enough to ensure that a deceased loved one gets a respectful ceremony and either space for their ashes to be scattered or stored or a burial plot for their body to rest.

Anything beyond that may cost extra, but what is considered essential and what is not will depend on the funeral director, and can shape the price of the plan in ways that can make it harder to make like-for-like comparisons.

Typically, the following will cost extra or could increase the cost of a funeral plan:

  • Floral tributes, particularly personalised wreaths with names or particular flowers
  • A wake ceremony following the funeral
  • A grave marker, such as a headstone, memorial or urn
  • Death certificates
  • Celebrant or officiant fees
  • Transport for mourners and limousines for the family
  • Order of service, tribute materials, verse sheets and other printed materials
  • Death notices printed in local newspapers or newspapers of record

Why Should You Consider A Funeral Plan Now?

The biggest reason to purchase a funeral plan now is to lock in the funeral fees now before they increase due to inflation and other price increases. It also allows you to spread out the cost and make choices about how your funeral will take place.

It is vital to note that funeral plans can vary in terms of the costs they guarantee; sometimes they will cover direct costs for services they own whilst estimating disbursements, third-party fees paid to doctors, churches, Living Memorial Parks, and anyone else not part of their company.

In other cases, they will cover both sets of costs, and it is vital to know what a funeral plan covers before buying.

What Are The Alternatives To Pre-Paid Funerals?

Aside from pre-paid funerals, you can use your own savings to cover funeral costs, which will often be mentioned as part of a will or probate proceedings.

As well as this, an over-50 plan or funeral insurance will typically pay out a lump sum which covers funeral costs and other expenses, whilst a life insurance plan written in trust ensures that any money goes directly to your named beneficiaries.