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Ways to pay for your own funeral (and why it’s a good idea)

Ways to pay for your own funeral

Why pay for your own funeral?

Most people prefer not to think about their funeral – let alone prepare for it. However, planning and paying for your own funeral in advance is a selfless and honourable thing to do. Especially as funeral prices continue to soar faster than inflation every year (up 128% since 2004).  

The average cost of a final farewell in the UK is now £4,184, not to mention flowers, a memorial and other additional extras which amount to £2,532 on top. 

It’s hard to think that those closest to us would be responsible for covering this large, and probably unexpected, bill, whilst coping with their grief.

However, taking things into your own hands and setting money aside for your final send-off can give you peace of mind that they won’t have the additional worry when the time comes.

Your loved ones can focus on commemorating your life in the most appropriate way, rather than how they’ll finance the occasion. 

Ways to pay for your own funeral

Here are three ways you can pay for your funeral:

Life insurance

  • Pays out cash lump sum which could be used for your funeral
  • Cost of cover depends on personal factors and type of cover 
  • Could be more affordable than a funeral plan
  • No guarantee your loved ones will use pay out to cover funeral costs.

Life insurance can be an affordable way to spread the cost of your funeral ahead of time.

It can provide a cash lump sum pay out when you pass away, in exchange for a monthly premium.

How much you pay for life insurance is determined by your personal circumstances and the type of policy you choose.

Generally, over 50 life insurance is the most popular option for those wanting to leave behind enough to cover their funeral costs specifically.

Any UK resident aged between 50 – 85 can get over 50 life insurance and the pay out from the policy is guaranteed.

The downside to life insurance is that your age and/or health will affect how much you can be insured for and there’s no guarantee it will cover the total cost of your funeral.

There’s also no certainty that your loved ones will use the pay out according to your wishes. They may choose to spend it in other ways.

Prepaid funeral plan

Ways to pay for your own funeral
  • Guarantees to cover your funeral services at today’s rate
  • Plan your funeral in advance
  • Choice of payment options 
  • Guaranteed acceptance.

Prepaid funeral plans have become a popular way of paying funeral fees in advance.

They can be bought online through various nationwide providers and local funeral directors.

It’s essentially an agreement with a provider to carry out your selected funeral services when the time comes, no matter when that may be.

Unlike life insurance, you can choose how you pay – either in upfront in full or you can spread the cost in low monthly instalments.

The main benefit of a funeral plan is that it allows you to freeze today’s funeral prices and avoid any future price hikes.

You can also make all the arrangements for your send-off so that it’s exactly how you want it to be – subsequently reducing additional stress for loved ones when the time comes.

It’s important to be ensure that your plan includes everything that you’re expecting. A little research and comparing different plans will help you find the best funeral plan for you and your family.

Savings account

  • Safe and easy way to pay for funeral 
  • Funds would need to be accessible after you pass away
  • You’d need to save quickly to beat rising funeral costs
  • No guarantee your loved ones will use the savings to cover funeral costs.

It’s always a good idea to have savings and income protection and it’s a safe way to set money aside for your funeral.

However, your savings account would need to be easily accessible when you pass away. 

For example, having them in a joint bank account will ensure they can be withdrawn by the surviving account holder.

One problem with saving up for your funeral is that there’s a chance you could pass away before you’ve saved enough funds.

Also, there may be other things you need to pay for as you get older, such as carer fees, which would take precedence over funeral costs. Not only that but unexpected costs may crop up too, such as home maintenance costs.

If you currently have sufficient savings, you could use these to pay for a prepaid funeral plan in full and lock-in today’s rate.

This way, you’ll have peace of mind that you’ve prepared for what’s around the corner and that your family will have all the support they need.

Further help

If you need more help in deciding which is the best way to pay for your funeral in advance or you just want to explore your options, then you could use the expertise of an FCA regulated broker. 

A broker, such as UK-based Reassured, works on your behalf (the customer) to find you the best financial protection for your needs.

They can compare quotes for life insurance and/or funeral plans without obligation and don’t charge a penny for it.

That’s the quickest way to discover your options, but you could also compare life policies and funeral plans directly online.

Featured Image: Background photo created by kotkoa –

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