Leading funeral plans assessed

In general funeral plans offer similar things but only by reading and understanding the detail will you realise that some offer a more comprehensive funeral service than others.

Our funeral plan review will help you understand the differences, so you can work out what funeral services are important to you and what are just gimmicks best avoided.

It's important to understand funeral plan pros and cons before making your decision. Buying a funeral plan from an FCA authorised provider is a good thing to do as it removes the burden from your family; however, in addition to the advantages, there are aspects that need consideration.

All funeral plans fully guarantee your funeral director's costs which means there should be nothing left to pay for the services included in the plan when the time comes. Here are the key points to look out for:

• Help and guidance with documentation

• Services on the day – some plans may not include the same level of support

• Coffin – the quality will vary depending on the level of service you choose

• Hearse

• Limousine – may or may not be included; again depends on the level of service

• Viewing of the deceased – several companies only include this service in some of their plans

• Transportation of the deceased – most companies have a mileage radius but this varies

In addition to the funeral director's costs, there are also the essential third-party fees which include your burial or cremation costs, the minister's fees and, where applicable, doctor's fees. We will help you see which companies pay a contribution towards these additional funeral costs and which fully guarantee them.

In addition to our reviews, you can find a list of the top 10 funeral plans showing how much they cost at a glance.

How to compare funeral plans

Details

Most funeral plan providers offer between 3 to 5 types of funeral plan, providing varying degrees of service. We will explain how each work but essentially you will find the following:

Base Plan: This type of funeral plan will usually guarantee the funeral directors costs but provide no provision for the third party costs. These additional funeral costs will therefore need to be paid for by the family at the time of need.

Simple Plan: Some funeral plan providers now offer plans that provide the funeral directors costs and either an allowance or guarantee for burial or cremation costs but have some limitations such as the time the funeral service takes place.

Standard Plan: Provides a guarantee that the funeral directors costs are covered plus either an allowance or guarantee for burial or cremation costs. The standard funeral plan usually comes with a standard coffin and no limousine.

Midrange Plan: Provides a guarantee that the funeral directors costs are covered plus either an allowance or guarantee for burial or cremation costs. The midrange funeral plan usually comes with a midrange coffin and one limousine.

Superior Plan: Provides a guarantee that the funeral directors costs are covered plus either an allowance or guarantee for burial or cremation costs. The superior funeral plan usually comes with a high quality coffin and two limousines.

Payment Options

Most funeral plan providers offer a range of payment options which can include the following:

In Full / over 12 months – This is the cheapest option with most funeral plan companies offering no charge for spreading costs over 12 months.

Instalments – the instalment terms can vary from company to company with monthly payment options between 1 and 25 years. The additional fees and deposits also differ so we will point out the ones which are more expensive and which providers offer immediate cover.

Fixed Monthly Payment Plan – Some funeral plan providers also offer a fixed monthly payment plan if you are between the ages of 50 and 80. You pay a fixed amount monthly which is based on your age and level of service required which is payable either for life or until you are 90 and are covered for your funeral services after the first two years. There is a chance with this type of plan you could pay in more than the cost of the funeral service; it all depends on how long you live. 

Should you choose a funeral plan or over 50s life insurance?

A funeral plan and an over 50s life insurance policy can both help your family financially, but they work in very different ways.

A funeral plan allows you to arrange and pay for many of your funeral services in advance. The services included are secured at today's prices, helping to protect against future increases in funeral costs.

An over 50s life insurance policy, on the other hand, pays a cash lump sum when you die. Your beneficiaries can use this money however they choose, whether that's paying for your funeral, settling outstanding bills or leaving a financial gift to loved ones.

Some people choose to have both. A prepaid funeral plan can cover the funeral itself, while an over 50s life insurance policy provides additional financial support for other expenses that may arise after death.

The right option depends on your budget, your priorities and whether you would prefer to pre-arrange your funeral or leave a flexible cash payment for your family.

Our verdict

Every funeral plan provider offers something slightly different, even when plans appear similar on the surface.

Some providers include cremation fees as a guarantee, while others only contribute towards third-party costs. Monthly payment options, cancellation policies, transfer options and additional services can also vary significantly between providers.

Rather than choosing solely on price, we recommend comparing:

• What's included in the funeral director's services.

• Whether third-party fees are guaranteed.

• Monthly payment costs and any interest charged.

• Flexibility if your circumstances change.

• Customer reviews and reputation.

• FCA authorisation and consumer protections.

By understanding these differences, you'll be in a much better position to choose a funeral plan that provides both good value and peace of mind for you and your family.