What Are Pre Paid Funeral Plans?

Pre-paid funeral plans are nowadays a sensible and cost-effective way to make financial provision and decisions for your funeral service in advance.So how do they actually work?

In this blog we will break down what that means and the questions you should ask when taking out any pre-paid funeral plan.

What Is A Pre Paid Funeral Plan?

A pre-paid funeral enables you to make the necessary financial arrangements for your own funeral in advance as well as paying for your selected funeral director’s services and making a contribution towards the third party funeral services. Put very simply, it is arranging and making the financial provision for the funeral service you would want before you actually need it.

What Funeral Arrangements Can I Make?

You can make any arrangements you want to with a good pre-paid funeral plan. The chosen funeral director will simply put together a tailored funeral service suited exactly to your requirements. Many funeral directors offer set plans, which are pre-packaged to include a predetermined list of services, but if you require something more bespoke the only limit is your imagination and pocket.

Where Are My Payments Held?

This depends on the funeral plan provider and funeral director your plan is held with. To be clear and succinct, in the majority of cases the funeral director who sells you the funeral plan does not hold the money themselves. For your protection, the funeral pre-payment is paid directly to the plan provider and they hold the money securely until the funeral service is required. Funeral plan payments can be held in trust funds or in whole of life assurance policies.

Are All Pre Paid Funeral Plans The Same?

Not at all! Funeral plan providers differ greatly in operational practices, size and the relationships they each have with funeral directors. We have strong relationships with a large network of funeral directors across the UK and securely holds funeral plan funds. Transparency, fairness and financial security, along with ‘doing the right thing’ are at the heart of our approach.

Where Can I Get A Pre Paid Funeral Plan?

There are many places you can take out a funeral plan including online, through your local funeral director and via salespeople at events or over the phone. We recommend speaking to your local funeral director about your pre-paid funeral plan. As the industry expert in your community, your funeral director is best placed to provide suggestions and ensure you receive the service you want. You may even get a better price.

What Else Do I Need To Know About Pre Paid Funeral Plans?

Make sure you are clear on how much of your funeral plan pre-payment will go towards third party costs, known as disbursements. Most funeral plans do not cover the full cost of third party costs, such as cremation or burial, because these fees are beyond the funeral director’s control. The amount included in each plan differs greatly.

If you choose to purchase a funeral plan directly from a funeral plan provider, it is also important to check that they have an existing relationship with your chosen funeral director. And finally, it’s a good idea to ensure that your funeral plan provider is registered with the Funeral Planning Authority and adheres to their strict Code of Practice.

For more information about making financial provision for the cost of your funeral, speak to your local funeral director or arrange a home visit.

funeral plan checklist with pen resting on agree