A Quick Guide to Funeral Payment Options

A Quick Guide to Funeral Payment Options

by David Redmond on 20 Jan, 2012

There aren’t many people who are keen on thinking about their own funeral, never mind the various funeral payment options available.

Planning a funeral is one thing, making sure it’s paid for is another. Unfortunately, every year in the UK thousands of people make no financial provision at all for their funerals.

In these cases, the financial obligations fall with any family members left behind. If there is nobody to pay or who can pay, the local authority will then provide a basic cremation service.

When it comes to funeral payment, it’s best to seize the initiative by taking out a pre paid funeral plan. By doing this you won’t be leaving anyone else with a financial burden after you’ve passed away. You’ll also have the peace of mind that comes with knowing all your funeral plans are in place and will be carried out in accordance with your wishes.

Below are the three main types of funeral payment options when taking out a prepaid funeral plan.

  • Pay in full up front

This may not seem like the most attractive funeral payment option initially. However, by taking out a prepaid funeral plan, you’re protecting yourself against any future cost rises, which could be considerable.

If you have the money available, you can secure your funeral plans at a set price now, whilst not adding to your monthly outgoings.

Beware that not all prepaid funeral plans are the same. While some may claim to guarantee all your funeral costs will be fixed, it’s always worth reading the small print to ensure this is in fact the case.

  • Pay over a set period

If you’re under 50 and considering your funeral payment options, spreading the total cost over 1, 2 or 3 years might be the most suitable option for you.

The benefit of this is that your monthly funeral payment won’t rise; you will pay a monthly amount based on the cost of your chosen funeral plan at the time your prepaid funeral policy starts.

  • Make monthly payments indefinitely 

A lot of prepaid funeral plans come with an alternative method of funeral payment if you’re aged between 50 and 80.

With prepaid funeral plans you can pay a lower monthly amount indefinitely, which will be fixed until the time of your death. Planning a funeral isn’t a pleasant thing to think about, but you can set up a direct debit and just forget about it.

Your funeral will typically be fully covered once you’ve paid into your prepaid plan using this method of funeral payment for two years.

The Co-operative Funeralcare provides a range of funeral payment options. For help and advice on planning a funeral, visit www.co-operativefuneralcare.co.uk.

About the Author

David Redmond


David Redmond is a Partner of Don Gilliard Finance Group. He is a fee-only, independent financial advisor and financial planner. For over 15 years, he has been helping individual investors and their families realize their investment goals.