Monthly funeral plans

  • How do monthly funeral plans work?
  • How much do monthly payment funeral  plans cost?
  • Do pay monthly funeral plans cost more?
  • Types of monthly funeral instalment plans
  • Alternative lower cost options

Monthly funeral plans make paying for a funeral in advance more affordable. With low cost monthly instalments, you can spread the cost of your funeral over a fixed period, safe in the knowledge that your monthly direct debit payments will never go up, even if funeral costs rise in the future.

How do monthly funeral plans work?

Pay monthly funeral plans let you arrange your funeral in advance at today’s prices however instead of going to the expense of paying for your funeral services in one go, with a monthly payment funeral plan you can spread the cost over a number of years, making it more affordable.

All funeral plan providers offer pay monthly funeral plan options, usually ranging from 1 to 30 years. Some companies even offer direct debit payments up to 25 years, but this depends on age as usually payments must be complete by the time you are 80.

Once you have completed your monthly instalments your funeral plan is in place; so you won’t have to pay a penny more for the services guaranteed in your plan, no matter when it is in the future.

If you die before the instalment payments are complete, some companies will still provide your funeral service, provided you have been paying into your plan for longer than a year. If your provider does not do this, your family will just need to pay the outstanding balance and your funeral service can take place as requested.

simply funeral plans

How much do pay monthly funeral plans cost?

How much a monthly funeral plan cost swill vary depending on:

  • The funeral plan provider
  • The level of service you require
  • Over how many years you wish to spread your payments

Our chosen partnerDignity's monthly funeral plan has the following costs;

Payment options Limited plan Amber plan Pearl plan Diamond plan

Single payment

£3,095 £3,495 £3,850 £4,195

1 year plan

Total payable

£257.91

£3,095

£291.25

£3,495

£320.83

£3,850

£349.58

£4,195

3 year plan

Total payable

£98.66

£3,552

£110.74

£3,987

£121.46

£4,373

£131.88

£4,748

5 year plan

Total payable

£64.27

£3,856

£71.91

£4,315

£78.68

£4,721

£85.27

£5,116

10 year plan

Total payable

£38.25

£4,591

£42.53

£5,104

£46.32

£5,559

£50.01

£6,001

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Do monthly funeral plans cost more?

Monthly funeral plans do cost more as your payments include an instalment fee, however the price of the funeral services detailed in your plan is still frozen and based on today’s costs, so paying in this way could still save you and your family money.

For example, a standard plan with Dignity costs £3,495 when paying in full, or £5,104 over 10 years. This means you pay roughly £161 extra each year for spreading your payments.

Remember though, the cost of monthly instalments will vary between funeral plan providers so you may want to compare both the monthly and total cost of funeral plans before you buy.

No deposit monthly funeral plans

Some plan providers charge a deposit of between £50 to £250 for monthly funeral plans however others don’t, which can be useful if you’re on a tight budget.

When comparing funeral plans, work out what the total cost will be by adding the deposit amount if applicable to the amount you will pay over the full term of the plan to ensure you are happy with it.

Types of monthly payment funeral plans

There are two types of monthly payment funeral plan. Both allow you to spread the cost of your funeral service but in very different ways:

1. Monthly instalment funeral plans

With a monthly funeral plan, you choose the duration of your instalments based on how much you can afford to pay per month so you know exactly how much the plan is going to cost you from the outset. Once you have paid all the instalments your plan is in place, ready to provide your chosen funeral services in the future

2. Fixed monthly payment funeral plans

With a fixed monthly payment funeral plan, your money is held in a life insurance policy, so your payments are based on your age. Premiums are payable for life or until you are 90, so there is a chance you could pay more for the plan than the actual cost of the funeral service.

Depending on the provider you choose, you will be covered for your funeral services after one year or two years, and if you die within this initial period, the money you have paid in will usually be refunded or used as part payment for the funeral services. For example, Golden Leaves pays 120% of the premiums paid to the funeral director to put towards the cost of the funeral.

Alternative lower cost funeral plan options

If you prefer to pay a little less on a monthly basis, there are two alternative low-cost funeral planning options you may want to consider:

  1. Direct Cremation plan - a cremation without a funeral service, which is why a direct cremation plan is less than half the price of a traditional funeral plan.
  2. Over 50 life insurance - Over 50 life insurance, also known as funeral insurance, can cost as little as £4 a month and provides a cash sum when you die that your family could use to help with funeral costs.

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Dignity with Distinction
Golden Leaves Funeral Plans
Sunlife

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