What Does a Funeral Plan Include?
The cost of a funeral, whether you choose cremation or burial, continues to increase year on year. For so many people this can be very worrying. There is an option that allows you to pay for your funeral in advance, either with a lump sum, in instalments, or via monthly payments.
Funeral plans are becoming increasingly popular. People choose them because you pay upfront for your funeral and your relatives don’t have to worry about covering the cost themselves.
What is a Funeral Plan?
A funeral plan allows you to pay in advance for your funeral. The benefits of this are many. For example:
- It reduces the stress and financial strain on your loved ones
- It locks in the cost of a funeral at today’s price
- You can pay in a variety of ways, either in a lump sum, instalments, or monthly payments
You organise a pre-paid funeral plan directly with a plan provider or a funeral director. It’s up to you to decide what type of funeral you want and you may also be able to pick extras such as the type of service or coffin.
How Does a Funeral Plan Work?
A funeral plan is a provision that is put in place to cover the cost of chosen funeral services. When the time comes for the funeral, your family has to use a nominated funeral director or choose one from an approved list.
There are several payment options for funeral plans including:
- A lump sum: You simply choose your funeral package and pay the plan provider upfront. The provider then organises the funeral and supports the family when the time comes.
- Monthly instalments: It is possible to stretch payments out over several years, depending on the provider and type of plan you choose. Generally, the full costs of your plan won’t be covered until all the instalments have been paid.
- As part of a life insurance plan: Some providers offer plans that are covered by insurance policies. When you die, the insurance payout goes towards your chosen funeral services.
What Costs are Covered by a Funeral Plan?
What’s included in a funeral plan varies between providers and the type of plan you choose. Some providers offer a wide range of options which means a bespoke service can be created just for you. Other providers offer just the most popular options which makes your choice simpler.
Not all funeral plans guarantee to cover the full cost of a funeral. This is because there are certain costs not under the control of the funeral director. These include cremation fees and medical fees, for example.
If you take out a funeral plan that doesn’t guarantee to cover these costs, it may be possible to build an allowance into the funeral payment plan to cover these costs. However, should there be a shortfall, it will be charged to your estate when the time comes.
You must check with your provider exactly what your plan covers. This could be a big deciding factor on whether this type of arrangement is right for you. It will also determine which provider you choose.
Funeral plan providers usually offer three or four different plans. They tend to include one that covers the basic funeral and others that get progressively more expensive as other services are included in the plan.
You should always compare funeral plans before deciding on one that’s right for you. When making comparisons, try to spot what services are not mentioned rather than being drawn to ones that are.
Let’s give you a simple list of things that may be covered, before looking at things that might not.
Your funeral plan may include the following cover:
- Funeral Directors costs
- Guidance and advice on funeral arrangements
- Doctor’s fees
- Recording of special requests£
- Coffin
- Collection and transport of the deceased
- Care of the deceased until cremation or burial
- Cremation or burial fees
- Minister’s fees
- Religious service fees
The following might not be covered:
- Bereavement support
- Use of Chapel of Rest
- Family viewing
- Limousines
- A funeral that’s held on a weekend
- Transportation if death occurs while away from home or on holiday
- Burial plot
- Headstone
- A venue for the wake
- Any catering for the wake
- Funeral flower costs
There is one area in which funeral plan providers differ considerably. When it comes to covering the essential costs of a funeral that are not under their control, such as cremation fees, some will only guarantee a contribution up to a set amount. It tends to be around £1,000. If the costs exceed this amount, it is down to the family or estate to pay the difference.
A funeral director will set these contributions at an amount that they hope will cover the costs in the future. It’s impossible to predict how much the cost of an average funeral will change in the future, so you must think carefully about whether you want your funeral plan to cover these costs or not.
