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Sponsored by Choice Funeral Plans
Planning your funeral in advance might seem morbid, but it can save your loved ones a huge amount of time, stress and money when the time comes.
Despite this, many of us put off thinking about our funeral, often adding it to a list of things we’ll deal with later, even though the idea of leaving a financial or practical burden for family can be unsettling.
That’s why prepaid funeral plans are often marketed as a way to give you peace of mind, as they enable you to fix the cost of your funeral, set out your wishes, and spare loved ones difficult decisions. On the other hand, some people prefer the flexibility of paying later, using savings or insurance when the time comes.
In this article, we’ll look at how funeral plans work, what they cover, and how they compare with paying for a funeral after death. We’ll explore the pros and cons of each approach, and the kinds of situations where one might make more sense than the other, so you can decide which route feels right for you and your family.
What is a prepaid funeral plan?
A prepaid funeral plan is an arrangement you make with a funeral services company whereby you organise all of the details of your or a loved one’s funeral in advance, and pay for it upfront. You can generally opt to pay all at once, or in regular instalments, although paying in instalments will typically cost more.
You can usually choose from a range of different plans ranging from lower cost simple plans to more expensive plans which enable you to personalise elements of your funeral to suit your funeral wishes. For example, more basic plans may cover the cost of an unattended cremation only, while more comprehensive plans may provide a service for family and friends to attend, as well as extras such as embalming, a limousine and an upgraded coffin.
How does paying later work?
Some people choose to pay for their funeral in other ways, such as putting money into a savings account that can be used when they die, or they may decide to take out an Over 50s life insurance plan. Both options can provide a sum of money that can be used towards funeral costs.
With an Over 50s life insurance plan, you pay a premium each month, and the policy will pay out a lump sum when you die. This type of life insurance doesn’t have a set term, so you’ll usually pay premiums until you die, which means a payout is guaranteed when you die.
The maximum payout from Over 50s life insurance is usually pretty low, typically around £3,000 but sometimes up to £10,000, and there isn’t usually the option to choose a higher sum assured. It’s very possible to pay in more than the guaranteed lump sum, especially if you live into your 80s or 90s. These plans are designed for a fixed, guaranteed payout upon death, but premiums are often paid for life – meaning the longer you live, the higher the total cost, potentially exceeding the payout.
The other option is simply to leave your family to foot the bill for your funeral, and then for them to reclaim that money from your estate at a later date.
Request a FREE Choice Funeral Plan Brochure
A Choice Funeral Plan lets you pay towards your funeral and record your wishes in advance, helping to give you and your family peace of mind.
Request your brochure using the link below or speak with one of our experienced team members at Choice on 0808 258 4867.
Terms, conditions, limitations and exclusions apply.
The case for prepaid funeral plans
Prepaid funeral plans have several benefits, with the main ones as follows:
- You’re effectively paying towards your funeral at today’s prices
When you buy a prepaid funeral plan, you’re effectively locking some elements into current prices, so if funeral costs have increased by the time you die, you’ll have made a saving overall for your estate. According to SunLife’s 2026 Cost of Dying report, the average cost of a traditional attended funeral has risen by 146% over the past 22 years to £4,510, with costs up 5.3% in the past year alone.
- You’re reducing stress and difficult decisions for your family
Unless you’ve spoken to your family about your funeral wishes, and outlined what sort of send-off you want, they’ll have to plan on your behalf at a time when they’ll be grieving.
By taking out a funeral plan, you can help spare your loved ones this stress, ensuring everything is planned and paid for in advance so they can focus on what really matters. You’ll also have peace of mind that you’ve made your wishes clear so you’ll have the funeral that you wanted.
- You don’t need a big lump sum
If you want to buy a prepaid funeral plan, you don’t need to find a lump sum to pay for it. Instead, with some providers you can make monthly payments if these are more affordable for you. If you opt for monthly payments for longer than 12 months, typically you will pay overall more for the funeral plan, and if you die before the plan is fully paid off, any remaining balance will usually need to be paid at the time of the funeral. You will need to check specific terms of the plan.
- Your money is protected
Funeral plans have been regulated by the Financial Conduct Authority since July 2022. If you take out a funeral plan, your money is protected under the Financial Services Compensation Scheme (FSCS), meaning your money may be protected if the provider fails, subject to FSCS limits.
Things to consider
When deciding whether a prepaid funeral plan is right for you, make sure you look at which funeral directors the plan will allow you to use.
Some will give you access to hundreds of funeral directors across the UK, but you should check whether there is a branch that is local to you, or the area where you’d like to be laid to rest, and that it suits your personal wishes.
Bear in mind too that different funeral plans cover different things, so you’ll need to check the policy wording carefully so that you’re fully aware of any inclusions and exclusions. Plans won’t, for example, usually cover the cost of things such as burial plots, headstones or flowers. They also won’t cover catering costs for any wake you might be planning after the funeral. Some include fees for cremation and others do not.
The case for paying later
The main ways to pay for your funeral later are either using savings or insurance. These can have the following benefits:
- The proceeds of your insurance policy doesn’t have to go towards your funeral
Any payout from your Over 50s policy when you die doesn’t have to be put towards your funeral costs, it can be used to pay off any outstanding debts or to leave a small legacy for children or grandchildren, for example.
- Potential to save more than the cost of your funeral
By putting money into a savings account over the years, you may accumulate more than is needed for your funeral. This means your family could benefit from any extra funds to cover other costs or pass on as a gift.
- No restrictions on funeral choices
Unlike prepaid funeral plans, which may limit you to certain funeral directors, service providers or specific service types, paying later gives your loved ones complete freedom to choose the type of funeral and service arrangements that feel right at the time.
Things to consider
It’s worth noting that any payout from an Over 50s insurance policy may not keep up with funeral price inflation, potentially leaving your loved ones having to cover any shortfall themselves.
If you’re planning to use savings to cover your funeral costs, remember that your accounts will usually be frozen until probate has been granted. That means even if you’ve given access information to your accounts to loved ones, they could get into legal trouble if they do this. However, if the person who has died had a joint account and the joint owner is alive, that person should still be able to access the money in the account.
It’s also worth bearing in mind that family or friends who pay for the funeral themselves and then claim the money back from your estate later on may be in for a long wait. They will need to wait until the estate administration process is nearly complete and probate has been granted, which could take anything between nine and twelve months.
| Option | Pros | Cons |
| Prepaid funeral plan | Locks in some of today’s funeral costs, protecting against inflation | Third-party costs (burial plots, flowers, wakes) usually not included |
| Reduces stress and decision-making for loved ones | Limited choice of funeral directors depending on plan | |
| Funeral wishes are clearly documented | If paying in instalments, plan may not be fully paid at death | |
| Can often pay monthly instead of a lump sum | ||
| Money is protected under FSCS regulation | ||
| Paying later (savings or insurance) | Flexible: money or insurance can be used for other purposes | Funeral costs may increase due to inflation so savings may not cover costs |
| Savings can accumulate beyond the cost of a funeral | Loved ones may need to arrange and pay upfront | |
| No restrictions on funeral director, service provider or service style | Savings accounts may be frozen until probate | |
| Insurance guarantees a payout (though limited) | Insurance payouts are often limited (£3k–£10k) | |
| Savings and insurance plans protected by FSCS | Family may face financial and administrative burden |
Request a FREE Choice Funeral Plan Brochure
A Choice Funeral Plan lets you pay towards your funeral and record your wishes in advance, helping to give you and your family peace of mind.
Request your brochure using the link below or speak with one of our experienced team members at Choice on 0808 258 4867.
Terms, conditions, limitations and exclusions apply.
Which option is best for you?
There’s no one-size-fits-all answer when it comes to planning how you’ll pay for your funeral.
The right option for you will depend on your individual circumstances and financial situation. For example, if you know your loved ones would struggle financially if they had to pay for your funeral and then claim back the money from your estate following probate, you might decide that having a prepaid funeral plan in place could save them this financial stress. Similarly, if you want certainty that your funeral costs will be covered or majority covered, regardless of how much funeral price inflation rises in future, a prepaid plan could be for you.
However, if you want a bit more flexibility, and perhaps for your loved ones to have the option to decide whether they spend your savings or any insurance payout on whatever they want rather than specifically on your funeral, you may decide you’d rather pay later.
It is important to read all terms, conditions, inclusions and exclusions of any funeral plan or later life planning product you buy.
Whichever route you choose, the most important thing you can do is let your loved ones know what your plans are, and that you’ve thought about how you’ll cover your funeral costs. Knowing that you have made provision can provide them with valuable peace of mind that they won’t be left worrying about how they’ll pay for everything, or that they didn’t give you the send-off you wanted.