Can you finance a funeral?

Yes, you can finance the cost of a funeral with funeral finance.

Funeral finance is type of loan that’s taken out to cover upfront funeral fees, so you don’t have to find the money to pay straight away.

With the average cost of a funeral being £4,184[1] in the UK, it’s understandable that not everyone will have these funds available at the drop of a hat.

It could be more manageable to spread the cost with funeral finance. However, this option won’t be for everyone.

Reassured has put together this simple guide to help you make sense of funeral finance and to help you decide whether it could be the right product for you.

Continue reading as we explain what it is, how it works and the pros and cons…

Do you have a prepaid funeral plan?

Reassured can’t help you arrange funeral finance, however we can help you arrange a prepaid funeral plan.

A funeral plan is different from funeral finance because it allows you to plan and pay for your own funeral in advance.

With a funeral plan in place, your loved ones won’t have the worry of an unexpected funeral bill when you pass away.


What is a funeral plan?

  • A funeral plan allows you to pay for your key funeral services in advance and at today’s price.
  • You can plan the details of your funeral and make special requests so that it’s carried out in accordance with your wishes
  • A funeral plan gives you peace of mind that everything has been taken care of ahead of time and your loved ones are protected from the financial burden

Funeral plans arranged through Reassured have flexible payment options and you’re not tied into a credit agreement.

To learn more, simply get in touch with our funeral plan experts or head to our funeral plan guide.

Prices start from just £19.11* a month.

What is funeral finance?

Funeral finance is a payment option designed for people who can’t afford to pay for a funeral in one go.

It may also be the preferred option for those who’d prefer not to use a high-interest credit card or their own savings to foot the bill.

If you’re waiting for grant of probate or for a life insurance pay out, funeral finance can act as a bridging loan until you have access to the funds.

How do you get funeral finance?

Funeral finance is primarily provided by a specialist loan company called Funeral Safe.

You can apply for Funeral Safe finance directly with them or through the funeral director who’s arranging the funeral (they may have a Funeral Safe finance page on their website).

As with other types of finance, you’ll need to be eligible to apply for funeral finance and the success of your application is based on your financial health.

If you have a poor credit history then you may not be able to secure a loan with them.

Some funeral directors have their own financing or payment plan options, which may offer better terms than a Funeral Safe loan.

How does funeral finance work?

Funeral finance can be taken out to cover the cost of all or part of a funeral.

Depending on where you are in the arrangement process, you may wish to wait until you know exactly how much the funeral will cost before applying for finance.

With Funeral Safe, you can borrow from £499 to £7,500 with the option to pay by monthly repayments over 1 to 5 years.

The money you borrow is paid directly to the funeral director who’s carrying out the funeral.

It goes without saying that your loan will incur additional interest and charges. Your personal circumstances will determine the rates.

Cost example:

Based on the representative example provided on their website, if you were to borrow £4,184 (which is the average cost of a basic funeral) and spread the cost over the maximum term of 5 years, your monthly repayments would be £99.03.

The total amount payable over the whole period would be £5,941.60. Based on 15.9% APR. The APR will vary depending on personal circumstances up to 24.9% APR.

Is funeral finance a good idea?

As mentioned, funeral finance is a good idea for some people but not everyone.

When money is tight and you want to arrange a fitting farewell for your loved one, it may offer a practical solution for you and your family.

That being said, it’s important to weigh up the pros and cons to ensure it’s the right route to take.

PROs
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CONs
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Can help to relieve the pressure of making upfront funeral paymentsMonthly repayments can be expensive depending on how much you want to spend on the funeral
Can use as a bridging loan until other money becomes accessible (from the estate or life insurance pay out)A credit check is required for your application
APR can be lower than some credit cards and some loansAPR can be higher than some personal loans
No early repayment feesIncurs additional interest and charges which means you’ll end up paying back more than the amount you initially borrowed
Funeral Safe are registered with the Financial Conduct Authority (FCA)If you’re declined a loan or you have trouble making repayments, then this will have a negative impact on your credit rating

Alternatives to funeral finance

If you’re having trouble paying for a whole funeral or you just want to spread the large expense, then there could be other options available to you.

Some examples may include:

  • A payment plan set up with your funeral director
  • 0% interest credit cards
  • Personal loan through your bank (lower interest rates than funeral finance)
  • Borrowing from friends and family

Also, you may be able to get help with funeral costs in the following ways:

  • Funeral Expenses Payment (available to people with low income) or Bereavement Support Payment (available to the spouse or civil partner of the deceased). You can find out if you’re eligible on the government website
  • Crowdfunding. You can fundraise funeral expenses on websites such as GoFundMe or JustGiving
  • Charities such as Child Funeral Charity, the British Gas Energy Trust, and Friends of the Elderly may be able to help with funeral costs or provide some financial relief during a difficult time

How are other people paying for a funeral?

The SunLife Cost of Dying Report 2021 includes a survey of people in the UK who’d arranged a send-off for a loved one.

This is how they said they found the money to cover the cost of all or some of the funeral:

  • 38% took money from savings and investments
  • 25% put outstanding amount on a credit card
  • 25% borrowed money from a friend or relative
  • 16% paid the funeral director in monthly instalments
  • 17% sold belongings to cover the cost
  • 13% borrowed money from a loan provider
  • 9% applied for a Funeral Expenses Payment from the government
  • 6% paid by other means

Affordable funeral options

Unfortunately, funerals can be expensive and whilst you want to arrange the perfect send-off for a loved one, it may also cause financial stress for you during an already difficult time.

Funeral finance can be helpful in the short term, but it’s also a long-term financial commitment.

Unless you’re expecting funds to be accessible from the deceased’s estate or from a life insurance policy, you’ll be liable to pay back the loan from your own earnings.

To relieve some of the pressure you may consider a more affordable funeral option for your loved one, such as direct cremation.

Direct cremation costs on average £1,554 in the UK, compared to a traditional cremation which costs on average £3,885.

Or perhaps you may wish to cut back on optional extras to keep costs down. For example, choosing a simple coffin and having less flowers.

Spending less on the funeral means having to borrow less or even nothing at all if you can find the money elsewhere.

See our funerals on a budget guide for more helpful tips on how to save money when arranging a funeral »

Can I finance my own funeral?

Sometimes, arranging someone else’s funeral can make you think about your own funeral one day and how it may impact your loved ones.

You can finance your funeral, and protect loved ones from upfront fees, by taking out a prepaid funeral plan.

Funeral plans arranged through Reassured:

  • Guarantee acceptance to UK residents aged 18+
  • Guarantee your key funeral services at today’s prices
  • Have flexible payment options (pay in full or spread the cost)
  • Are approved by the Funeral Planning Authority (FPA)

Our award-winning comparison service can compare funeral plans on your behalf, without charging you a penny.

Contact our friendly team for your no-obligation quotes and secure the financial protection of your loved ones today.

Sources:

[1] SunLife (2021), Cost of Dying Report, sunlife.co.uk/costofdying2021

[2] Information for this article is taken from https://funeralsafe.co.uk/ and is correct as of 3rd of August 2021

*£19.11 per month pricing includes a £75 discount only available to Co-operative members and is based on a 50-year-old purchasing a Co-operative Simple Funeral Plan at £3,020 over the maximum term available of 25 years (total amount repayable £5,733.40) as of 3rd August 2021

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At Reassured, we will provide you with quotes from Co-op Funeral Care.

All of the funeral plans we provide are fully regulated by the Funeral Planning Authority (FPA) ensuring you and your money are protected.

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