Choosing the best funeral plan to suit your specific needs requires research

Since 2004, the average cost of funerals has increased by +112% and shows no sign of slowing down.

Taking out a funeral plan not only avoids your family having to make arrangements at a difficult time, but it also means that you pay today’s prices as opposed to the inflated costs at the time of death.

But with so many different options available it can be difficult to determine which is the best funeral plan for you.

In this guide, we’ll take a look at the important considerations when choosing a plan, allowing you to make an informed decision.

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Choice of funeral director

The funeral directors affiliated with your funeral plan provider can influence the plan you opt for.

Each funeral plan provider is attached to a network of funeral directors – some bigger than others.

Therefore, if you have a funeral director in mind, it’s important to ensure the provider you use works with that particular director.

Equally, if you have not yet made a decision on your preferred funeral director, it may be best to opt for a provider with access to a wide network, providing you choice.

Having a funeral service

Not all funeral plans provide the opportunity for your family to hold a funeral service.

The majority of funeral plan providers offer a tiered approach, where you pay more for a more elaborate set of services.

Whilst it can be tempting to automatically opt for the cheapest service, many lower tiered funeral plans don’t provide the opportunity to hold a ceremony.

This means that your body is transported straight from the funeral directors to the crematorium or place of burial, without the opportunity for your loved ones to pay their respects.

If you’re looking to provide your family with this opportunity, it’s important to consider whether the selected funeral plan provides this.

Third-party funeral costs

Your funeral plan may only cover the funeral director costs, not additional third-party costs.

With regards to a funeral plan, third-party costs refer to costs separate from that of the funeral director.

For example:

Many funeral plans provide a contribution to these costs, but the amount they contribute depends on the plan you choose.

Whatever isn’t covered by this contribution is then recovered from your estate or falls to your loved ones to settle.

Therefore, dependant on your circumstances (i.e the value of estate), it’s likely the best funeral plan for you is one that is going to cause minimal financial disruption to your loved ones.

3rd party funeral costs - £1,928Third-party funeral costs - £1,928

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If you die before payment is complete

Passing away before your funeral plan payment is complete can not only affect the services you receive but can also pass financial responsibility onto your loved ones.

Different funeral plans offer different outcomes if you were to die before your chosen plan has been fully paid off.

This tends to be influenced by the payment method chosen:

The most common outcomes are:

When choosing the best funeral plan for you, it’s important to consider the way in which you pay and how likely you are to pass away during these time periods.

Equally, it’s worth considering the value of your estate and the financial stress it may cause if the remaining balance was requested.

Rest of life premiums

Occasionally, payments towards your funeral plan can be required for the rest of your life. This could result in paying more into your plan than the cost of the funeral.

A common scenario is that once the balance of your plan is paid (sometimes including interest if you have selected an instalment payment plan), your payments cease and the cost of your funeral directors fees (and all other included features) are covered.

However, some funeral plans act more like whole of life insurance. Whole of life involves paying premiums for the rest of your life. Then upon your death, your loved ones receive a guaranteed lump sum pay out.

The difference in terms of a funeral plan is that rather than a lump sum being paid to your loved ones, the payment is made directly to the funeral directors to cover the cost of your funeral.

Whilst this type of plan does have obvious benefits, such as covering the entire cost of your funeral (third-party costs and wake included), it does involve making payments for the rest of your life.

This could result in you paying more into the plan than will be spent on your funeral.

Services included

The services provided with each funeral plan differ greatly, from transport to funeral type. It’s important to decide what it is you require from your plan.

Whilst it is important to consider all of the above when choosing the right funeral plan, ultimately it comes down to the plan which provides all of the necessary services you require.

Different tiered plans will offer different services at varying levels and other inclusions which may be a requirement for the solution you are looking for.

For example:

Consider what it is you’re looking to get from the plan and your available budget, before choosing the best funeral plan to fit your unique requirements.

Choosing the best funeral plan for you

You can save time and money, whilst securing the best funeral plan to fulfil all your wishes, by using an FCA registered broker.

With so many things to consider and such a variety of plans available, choosing the right funeral plan to suit your needs can be daunting.

Using an independent broker, such as Reassured, will help you determine what it is you’re looking to receive from a funeral plan.

It will also allow you to compare the various options available within your budget, making sure you get the very best deal.

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