Benefits of pre-paid funeral plans

There are advantages in taking out a pre-paid funeral plan. In short, you can select and pay for the funeral you want, not others think you want.

Funerals are not cheap. The average price of arranging a funeral in 2010 was  £6,800, according to The Guardian.

And yet according to the Dying Matter coalition, 82 per cent of people they surveyed do not have a pre-paid funeral plan and 46 per cent have not made any financial provision for their own death.

The research also shows that fewer than 10 per cent of people shop around and seek quotes from more than one funeral director.

Benefits of a pre-paid funeral plan

So it if you haven't thought about it already, consider the benefits of a pre-paid funeral plan:

• Your family do not have to worry about your funeral arrangements, other than confirming them when the time come;
• Your family get financial help to pay for your funeral when the time comes;
• Your family will know that you made the choices for yourself and that you’re having the funeral you would have wanted;
• You pay for your funeral director’s costs at today’s prices rather than a higher price when the funeral is required;
• You can pay by instalments;
• You can transfer it if you move to another part of the country.

How they work

The term ’Pre-Pay’ is used by the funeral trade to mean a formal contract between the client (you) and a funeral director for the future provision of funeral services.

The contract will specify all the choices that are normally made, such as location of the funeral, whether limousines are to be provided, the type of coffin, religious service or secular ceremony and so forth.

Payment can be made in a lump sum or via instalments throughout.

The most prominent funeral plan providers are Perfect Choice, Co-operative Funeralcare, Dignity PreArrangement Ltd, Golden Charter, and Golden Leaves.

These providers also market their plans through partner organisations such as AXA Insurance or Age UK. For example, the AXA Sunlife funeral plan is offered by Co-operative Funeralcare and the Age Concern funeral plan is offered by Dignity.

Mylastsong.com recommends Perfect Choice, as it is backed by the National Association of Funeral Directors (NAFD) and Ecclesiastical.

The plans are regulated by the Funeral Planning Authority and delivery of the funeral is covered by the NAFD Code of Practice. To find out more, click here.

If you move away

Because this contract is made with a specific funeral director, if you change location you must tell them so that the funeral plan is transferred to another funeral director in the area you move to.

Each funeral plan company has a list of funeral directors with whom they have contracts and you will choose one of these near your new home and select (if appropriate) a new church, cemetery or crematorium.

Standard of professional service

Most funeral directors are members of the National Association of Funeral Directors (NAFD) and the Society of Allied and Independent Funeral Directors (SAIF). These organisations ensure their members work to the highest standards of service set out in a Code of Practice, and will deliver the service specified in the pre-paid funeral plan.

Inform your executor

If you have seen the advantage of organising and paying for the funeral you want for yourself (or your loved one) rather than the funeral others think you want, or can afford, and have organised your pre-paid funeral plan, ensure that your executor knows.

Put the details in your secure access Lifebox that will be accessed by your executor on your death.

Also ensure your close family members know of the plan.