Are monthly funeral plans right for you?

We explore some stress free options, so you can choose the one that suits your pocket best.

Looking for Over 50s Life Cover from £3.70 a month?

How can I pay for a funeral plan?

When it comes to paying for your plan, there are a number of flexible funeral payment options available to you depending on your budget. 

The cheapest way to buy a plan if you have the cash available is either in full with a single payment or over 12 months, as the majority of plan providers don’t charge any extra for this payment option.  

If you prefer to spread your payments over a longer period, then it’s worth considering monthly payment funeral plans but again, it is essential that you compare costs as some plan providers charge a small fortune for the privilege.

How do ‘pay monthly funeral plans’ work?

All companies now offer pay monthly funeral plans but the terms vary massively. For example some will charge a deposit, whilst others like Dignity don’t.  

monthly funeral plansRegardless of the company though, you should expect to pay more for monthly payment funeral plans but please, please, please, check the total cost before signing on the dotted line. Also ask what happens if you decide to pay the plan off early. Dignity offer reasonably priced monthly payment options with no deposit and let you pay off either all of the balance or small amounts early without penalty. Instead they recalculate the cost based on the length of time you have had the plan so you save money, which can’t be said for all plan providers. 

Even with the additional charges, paying monthly for prepaid funeral plans can still be a smart decision financially as the costs are fixed at today’s prices, so you avoid future inflation. You are covered for your services once you have completed your monthly payments but if anything happens before this time, the money you have paid into the plan would go towards the cost of the funeral and the family would just need to pay the balance.   

Choose a payment option to suit your pocket

Payment Options
The affordable
Limited Plan
The essential
Amber Plan
The most popular
Pearl Plan
The big family
Diamond Plan
Current Prices
Monthly Payment Options
12 Monthly Payments
Total amount payable
5 Year payment period
Total amount payable
10 Year payment period
Total amount payable
15 Year payment period
Total amount payable
20 Year payment period
Total amount payable
25 Year payment period
Total amount payable

Of course it’s not just about price, it’s also about service so take a look at our funeral plans comparison to see what you get for your money.

What is funeral insurance?

In your search for the best monthly funeral payment plans, you may have come across companies advertising ‘funeral insurance’. Whilst it’s possible they are referring to a funeral plan, in all likelihood the company is talking about Over 50 life insurance – which is a totally different type of plan. 

With an over 50 life insurance plan, you pay a monthly premium and a cash sum is paid out when you die that your family can use to help with funeral costs, which is why many people refer to this type of plan as funeral insurance. 

Payments can be as low as £4 a month, so if you want to make provision for your funeral costs but would rather keep to a lower monthly payment, then you may want to consider an over 50s plan.

Visit our Over 50 life insurance section for more information

How else can I pay for a funeral?

Of course the other option when thinking about funeral payment options is to look to your estate or any savings you may leave. 

Paying for funeral costs when the time comes may be your preferred option but before making that decision, remember:  

  • If you are relying on your estate to pay funeral costs, it may take time for your family to access the money. Therefore they may have to find the money to pay for the funeral in the short term and wait to be refunded once the estate is settled
  • If you have money squirrelled away in a bank account, just be aware that funeral costs have consistently risen by 5% to 6% for over 10 years, which unfortunately is way above any interest rate you can get on savings these days. You may therefore need to keep ‘topping up’ your funds if you want to leave enough money to fully pay for the funeral.      

The other alternative is not to have a funeral service at all and consider a direct cremation, which will cut the costs by half. This is an option that is increasing in popularity throughout the UK, appealing to people who are looking for cheaper funeral options or those who just don’t like funerals.

At the end of the day, one of the main benefits of a prepaid funeral plan be it a more traditional plan or a direct cremation plan is that it freezes costs at today’s prices, so you don’t have to think about interest rates or estates being settled. Once you’ve paid, that’s it – no worry, no uncertainty, just reassurance and guarantees.