What you need to know about funeral plans
The Best Direct Cremation guide to funeral plans and how to best prepare for the future.
Planning ahead for your funeral is a very thoughtful and responsible thing to do. It allows you to share your preference for the type of funeral you want or aspects of any service to be included, and it also puts some financial security in place to ensure that the costs are covered.
This guide explains how funeral plans work, their benefits, and the importance of choosing a provider regulated by the Financial Conduct Authority.
What Are Funeral Plans?
A funeral plan is a financial agreement that allows you to pay for a funeral in advance, either for yourself or it could be for a dependent. In most cases the plan will guarantee all the services included, for the price you pay when the plan is taken out.
You should know that even the most comprehensive plans do not cover everything you might want. Plans are designed to cover the essential services for the type of funeral you want – they will not cover things such as flowers, service stationery, headstones, the wake and other additional services. Be sure to check what services are covered and what is not included with any plan you are considering.
Benefits of a funeral plan
Financial Assurance
Prepaying your funeral confirms the price today, it will protect you from future price increases and could save you money.
Supporting your family
With a plan in place, you are making things easier for your family having already chosen a funeral provider, and you are ensuring they do not have to find what could be a large sum of money for payment at a difficult time.
Clarity of Wishes
Choosing the right plan and documenting your preferences will help ensure you get the funeral you want.
Just like funerals, not all plans are the same. It is important to find the right plan for the type of funeral you want, and that it will be delivered by a funeral provider you are happy with. Most providers will have a direct cremation funeral plan option.
Funeral plans and FCA regulation
As of July 2022, prepaid funeral plans in the UK are regulated by the Financial Conduct Authority (FCA). This regulation ensures that providers adhere to strict standards, offering consumers protection and peace of mind.
Why Regulation Matters:
Consumer Protection: Ensures your money is safeguarded and managed responsibly. And provides protection for all funeral plan customers through the financial services compensation scheme.
Transparency: Providers must clearly outline what is included and excluded from their plans.
Confidence: You can be assured your provider is operating ethically and within the law.
Important: Always check that your chosen provider is FCA-regulated. Avoid plans from unregulated companies, as they may not offer the same level of protection. We list all the FCA regulated funeral plan providers below
How do funeral plans work?
There are two halves to a funeral plan – taking one out and making the necessary payments, and then what happens when the plan is actually needed.
Arranging a Funeral Plan
- Choose a provider and plan that suits your needs. You can do this directly with a funeral plan provider, or in many instances your local funeral director will have a relationship with a provider, and they can sell you a plan in person.
- Decide how you want to pay. There will be flexible payment options, with most providers offering the choice to pay in full or through monthly instalments. If possible, it will always be better to pay in lump-sum or payments over just 12 months. Payment periods longer than 12 months will normally incur additional charges that could make the overall price paid more expensive.
- Once you have chosen a plan and dealt with payment – it is then a really good idea to share the fact you have a plan with whoever is likely to arrange your funeral. It could be that you just let them know where the documentation is stored for when needed.
Activating a Funeral Plan
- When needed, your nominated arranger or another family member will just need to call the provider to initiate the plan.
- Depending on the type of plan you have, the plan provider will either pass you to a funeral director to deliver the services in the plan, or they will provide those services themselves.
- Any services not covered by the plan (e.g. flowers or catering) would need to be paid for separately by the family.
Most plans are available for anyone over the age of 18, although some payment options may be restricted to over 50’s.
Funeral Plans or Life Insurance
It is important to note that prepaid funeral plans differ from life insurance or over-50’s insurance, even though these insurance products sometimes describe themselves as being used for funerals.
Funeral plans cover actual funeral services and have their own specific regulations with the FCA.
Insurance will provide a lump sum of money, which can be used for various purposes including funeral costs. But as prices may have increased, there is no guarantee that a payout will cover all the funeral costs.
Additionally, with a funeral plan the total price is determined when the plan is taken out, with insurance, you will need to keep paying until death, which could mean paying a lot more over time.
Using life insurance for your funeral.
If you have life insurance for your funeral already in place, you should make sure your family are aware this policy exists. Without a specific funeral plan in place, if you have particular preferences for the type of funeral you want or the provider, then it is a good idea to document these, so your family know.
Depending on your circumstances, you may feel that a funeral plan is now a more suitable option for you. It could be that you choose to take out a funeral plan as well and use that to cover your funeral expenses, and leave any insurance payout as inheritance or to cover the cost of a wake, which a funeral plan won’t cover.
Final Thoughts on funeral plans
A funeral plan is a proactive way to ease the emotional and financial burden on your family when the time comes. By choosing an FCA-regulated provider and understanding how funeral plans work, you can ensure your wishes are respected and your loved ones are supported.
For more information on funeral plan providers, check out our funeral plan provider list below, where you can explore and compare options to find the right plan for you.
Funeral Plan Providers
First of all, it is important to understand the connection between the funeral plan provider and who will ultimately deliver the funeral service.
Provides both the plan and the funeral services
Some funeral plan providers will also provide the funeral services. This is typical with the bigger national chains such as Dignity, Co-op and Funeral Partners, a couple of independent funeral firms, but also with a lot of the national direct cremation providers. This can provide continuity and reassurance, but it may also mean that there are geographic restrictions based on where they have branches. You should check with any provider what geographic restrictions they may have before you take out a plan.
Plan provider and uses local independent funeral directors
Some plan providers are just a funeral plan business, and they will allocate their plans to a local independent funeral director. This doesn’t mean the plan can be used with any funeral director though as some plan providers will only work with specified funeral directors. If you have a specific funeral director in mind, you will need to check if they work with your chosen plan provider.
There are 26 FCA regulated funeral plan providers in the UK. We have provided a brief summary for each one and a link through to their website if you want to find out more information.
Aura Life
Aura is an online funeral service provider, offering direct cremations and direct funeral services. Their plans are available throughout Great Britain.
Avalon Funeral Plans
Avalon is a national funeral plan provider and they’re the only plan provider to offer plans internationally to expats. They use independent funeral directors to deliver the funeral services.
Celebration of Life
Celebration of Life is online only direct cremation specialist. They only offer unattended direct cremations and funeral plans and can provide their services across Great Britain.
Central England Co-op
Central England Co-op is a regional co-op group offering a full range of funerals and funeral plans. The funeral services could be delivered by any co-op funeral director throughout the country.
Choice
Choice is the funeral plan brand for Funeral Partners Funeral Directors. They offer a full range of funeral plans. You will have to use one of their funeral directors, which may cause geographic restrictions.
Co-op Funeral Plans
Co-op is one of the UK’s largest funeral service companies. They offer a full range of funeral plans and can provide services throughout the UK
Crystal Cremations
Crystal is an online funeral plan business. They provide coverage across Great Britain and will outsource the funeral delivery with their operations partner.
Dignity Funerals
Dignity is one of the UK’s largest funeral service companies. They offer a full range of funeral plans and will provide the services through their own funeral directors throughout the UK.
Distinct Cremations
Distinct is online funeral provider offering direct cremations across Great Britain and attended direct cremation plans that have to be used in one of 42 Crematoria across the country.
Ecclesiastical Planning Services
Ecclesiastical Planning services is a national funeral plan business that uses independent funeral directors to deliver their services across the country.
F A Albin & Sons
FA Albin is a local independent funeral director. They provide funeral plans that are primarily delivered locally by themselves.
Farewill Funerals
Farewill funerals is an online only direct cremation provider. They only offer unattended direct cremations and funeral plans and can provide their services across Great Britain.
Freeman Brothers
Freeman Brothers is a local independent funeral director. They provide funeral plans that are primarily delivered locally by themselves.
Golden Charter Funeral Plans
Golden Charter is a national funeral plan business that uses independent funeral directors to deliver their services across the country.
Golden Leaves Funeral Plans
Golden Leaves is a national funeral plan business that uses independent funeral directors to deliver their services across the country.
Haven Personal Funeral Plans
Haven is a local funeral director. They provide funeral plans that are primarily delivered by themselves in the Lancashire area.
Independent Funeral Plans
Independent Funeral plans is part of Memoria, a large crematorium operator. They offer direct cremations and attended direct cremations across Great Britain.
Low Cost Funerals
Low Cost Funerals is part of Memoria, a large crematorium operator. They offer direct cremations and attended direct cremations across Great Britain.
M&F Funeral Services
M&F is part of Fosters Funerals in Scotland. They offer a full range of funeral plans delivered by themselves in Scotland.
Open Prepaid Funerals
Open is a national funeral plan business that uses independent funeral directors to deliver their services across the country.
Peace Funerals
Peace is a local independent funeral director in Sheffied. They provide funeral plans that are primarily delivered locally by themselves.
Pure Cremation
Pure is online only direct cremation specialist. They only offer unattended direct cremations and funeral plans and can provide their services across Great Britain.
Serene Funeral Planning
Serene is a national funeral plan business that uses independent funeral directors to deliver their services across the country.
Southern Co-op
Southern Co-op is a regional co-op group offering a full range of funerals and funeral plans. The funeral services could be delivered by any co-op funeral director throughout the country.
William Alty Funeral Services
William Alty is a local independent funeral director in Blackburn and Preston. They provide funeral plans that are primarily delivered locally by themselves.
With Grace
With Grace is an online funeral service provider, offering direct cremations and direct funeral services. Their plans are available throughout Great Britain.