A funeral plan is a way of planning and paying for your funeral in advance. It can be a tremendous relief to know that the funeral details you’d like in place are noted and paid for before you pass away. Usually, funeral plans help avoid some emotional and financial pressure for loved ones.
The average cost of a funeral in the UK in 2023 was £4,141, an increase of 4.7% compared to 2022. 70% of people make provisions specifically to pay for their funeral before they pass away (+1% since 2022). But only 54% (-5% since 2022) of those put enough aside to cover the whole cost of the funeral. (Sun Life, 2024).
On top of the deceased’s provisions, many organisers have to fund the funeral through their own or alternative means. With these worrying figures in mind, could funeral plans be the answer? 37% of people funded their own funeral via a funeral plan in 2023. Sales of funeral plans are expected to increase by 33% by 2028 (Mintel UK Funeral Planning Report 2023) – what are the benefits involved?
- Personalised planning – so that your funeral arrangements are exactly as you want them to be. This includes the type of funeral you’d like through to the finer details such as music, readings and any theme you’d like.
- Peace of mind – that your loved ones are aware of your wishes, easing a little stress for them during the difficult time after your passing.
- Payment relief – British Seniors research found that 45% of people who have helped arrange a funeral within the past five years met some of the cost themselves. Paying for your funeral ‘up front’ relieves this burden. However it’s important to note that some items are not covered by funeral plans, including:
- Burial plots
- Catering
- Flowers
- Wake costs
Other items such as the cremation or burial may not be fully met. Therefore, it’s important to investigate your funeral plan options carefully.
- Price locking protects your pre-paid funeral from inflation and other price increases.
- Avoiding emotional spending – a huge 93% of funeral directors say people spend more money than they need to, especially on flowers (82%), catering and choice of coffin. When loved ones make arrangements, their grief can lead to emotional decision-making and potential overspending. A funeral plan avoids this as arrangements and finances are in place, although it should be noted that not all funeral costs are covered by the plan (see above). Including your wishes can help your loved ones in these circumstances.
- Flexible payments – many plans offer payment by instalments, usually incurring admin fees and interest. However, the full cost must be paid before the plan is needed in order to avoid additional costs for your loved ones. (Some providers underwrite their plans so they’ll cover the cost if you die before you’ve finished paying for it.)
Would a funeral plan offer you peace of mind, emotionally and financially? Read about the funeral plans available from Austin’s or contact our team via funerals@austins.co.uk or 01438 316623. Our team is available to answer any queries.
