How does a guaranteed funeral plan work?

How does a guaranteed funeral plan work?

Here’s how a guaranteed Pre-Paid Funeral Plan is expected to work for you:

  1. You advance a lump sum of your savings today, or pay over several months.
  2. You will not need to pay any more money to the named Funeral Director; whatever the cost of a funeral will be whenever it is carried out, however much inflation has affected and increased the cost of a funeral – then.
  3. The funeral is carried out by the Funeral Director whenever necessary; next month, next year, or decades away.


You should understand:

  • If you’ve chosen a cremation, then all of the costs are expected to be covered.
  • If you’ve chosen a burial, most of your costs will be covered by your Pre-Paid Funeral Plan, but most likely, not all, as a burial costs more to complete, compared to a cremation.
  • The idea is that you save money by paying today and when your funeral is carried out, whenever it occurs in the future, there won’t be any further cost to you or your family.
  • You should understand that costs outside of the Funeral Director’s control, may increase beyond the expected values in years to come and your estate/family may be expected to contribute to the total funeral cost, but there will be no further expense to add to the Funeral Director’s bill. Outside of the Funeral Director’s control might be doctor’s certificates, local authority fees, the minister’s fee and crematorium fees.


Where guarantees are included by your choice of Pre-Paid Funeral Plan company, they may cover all of the above or only some of them.

Choose wisely.

It’s important to find out what a Pre-Paid Funeral Plan is, so that you can understand how it works and organise a plan that is right for you.

Pre-Paid Funeral Plans are designed to pay the funeral director’s fees at the time of your death, for the funeral that you have arranged in advance.

Most plans include a payment towards cremation or burial. They are designed to cover the cost of a cremation or put the same amount of money towards a burial. Burials are more costly.

A plan will give you the peace of mind of knowing that your funeral will be carried out in exactly the way that you had planned it.

Your family won’t be worried about guessing what you wanted or spending a considerable amount of distressing time, worrying about arranging your funeral, when they should be more concerned about their bereavement.

Once you have organised your own Pre-Paid Funeral Plan, your family won’t be forced into buying extra limousines and flowers or an expensive coffin from an assertive salesperson representing a funeral director’s business.

How is a Pre-Paid Funeral Plan used?

Instead of arranging a funeral after someone has died, you are arranging your own or a funeral for someone else, while they are still alive.

You advance your money to purchase a Pre-Paid Funeral Plan which guarantees some or all of the funeral arrangements, depending upon the plan you have purchased, in advance.

You won’t have to worry about inflation as the price you pay is fixed at the outset.

When you have fully paid for your funeral plan – even when you consider inflation rapidly increasing the cost of funerals every year – it is better if you can choose a plan that doesn’t ask you for any more money to cover the funeral director’s fees.

Before deciding to purchase a plan you should consider:

  • Funeral inflation rates are unknown in the future
  • Can your savings match funeral inflation rates?
  • You might save money by buying sooner rather than later
  • The cost of an average funeral may rise to £5000 by 2017

Once your Pre-Paid Funberal Plan investigations are complete, you can download all the documents you need here.