What is Martin Lewis advice on funeral plans?

What is Martin Lewis advice on funeral plans? main image

Martin Lewis’ advice on funeral plans through the Money Saving Expert website provides information and tips on buying a prepaid plan. In addition to reviewing funeral plan costs, whether they are a good idea and security, the guide also compares three of the UKs leading funeral plan providers.

Who is Martin Lewis the Money Saving Expert?

Martin Lewis is a financial journalist, TV personality and founder of the website MoneySavingExpert. He is best known for campaigning for consumer rights and as the name of the website suggests, saving money.

What does Martin Lewis say about funeral plans?

Martin Lewis’ team at Money Saving Expert offer a one page guide on funeral plans. They list the pros and cons of funeral plans, 6 need to knows if you’re considering buying one and compare 3 of the UK’s largest funeral plan providers, namely:

Money Saving Expert funeral plan pros and cons

Martin Lewis funeral plan pros

  • Stops family being ripped off or having to shop around for the best price at a very upsetting time
  • Helps with cash flow issues if the family don’t have access to sufficient funds when the time comes.
  • Avoids the taxman. Funeral plans aren’t classed as part of your estate, so they will be excluded from any inheritance tax liability and won’t count as an asset if you’re assessed for care fees
  • Could help if you live in an expensive area as many national funeral plan providers offer set priced packages regardless of where you live
  • Some plans provide services even if you haven’t completed the monthly payments (This will be an FCA requirement of all monthly plans when they regulate the market from the 29th July 2022)
  • It can guard against inflation as you freeze costs at today’s prices, avoiding future inflation.

Martin Lewis funeral plan cons

  • It can cost more if funeral costs go down
  • If you expect to arrange a funeral within a couple of years, it may not be worth it financially
  • It could cost more if you live in a less expensive area
  • Certain plans limit the date and time of the funeral
  • You may have a limited choice of funeral directors
  • You may need the money to live off now

Martin Lewis 6 funeral plan need to knows

Here are Martin Lewis’ 6 funeral plan need to knows if you’re considering buying one:

  1. If you have the funds available, a prepaid funeral plan could be a good idea as it reduces the financial and emotional pressure from family and is exempt for inheritance tax
  2. It’s cheaper to pay for your funeral plan upfront or over 12 months if interest free
  3. It won’t cover all funeral costs such as funeral notices, embalming or the headstone
  4. A burial plot is not included
  5. Check that the plan can be moved to a new local funeral director if you move home
  6. Funeral plans are not regulated but will be from the 29th July 2022

Money Saving Expert funeral plan best buys

The Money Saving Expert does not offer any funeral plan best buys however he does list three market leaders as an example of what you can expect from a prepaid plan. To summarise:

  • Golden Charter offer contribution style funerals plan so there could be more to pay for third party costs when the time comes
  • Age Co or Dignity offer a full guarantee for cremation funerals but not for burials and are the cheapest of the three companies
  • Co op funeral plans are the most expensive but guarantee both cremation and burial funerals

Do Money Saving Expert offer funeral plans?

Money Saving Expert offers tips on how to decide whether a funeral plan is right for you, the pros and cons and alternatives however they don’t currently offer funeral plans themselves.

Does Martin Lewis think it’s smart to prepay your funeral?

Martin Lewis thinks a prepaid funeral plan could be a good idea for some people however he suggests that you wait until the market is regulated by the FCA on the 29th July 2022 before buying one.

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