30 / 11 / 20

Are funeral plans worth it? Cost comparison vs. Last minute funeral

Taking out a prepaid funeral plan is a way of paying for your funeral in advance, either via a single upfront payment or via monthly direct debit.

The increasing popularity of pre-paying for your funeral has led to a fifth of all UK funerals now being paid for with a funeral plan, as more of us realise the importance of planning for our future.

The purpose of a funeral plan is to ensure that when you die, the costs of your funeral directors services are covered, so your family needn’t worry about how they will find the money when the time comes.

Not only does having these plans already in motion lessen the financial burden on your loved ones, but there are some substantial monetary savings to be had when paying for your funeral today, as opposed to saving the funds or leaving the funeral arrangements to the last minute. 

How much does a funeral cost? 

The average cost of a UK funeral today is £4,184 as per the 2021 Sunlife Cost of Dying report. This baseline cost covers funeral directors’ fees, burial or cremation fees and doctor’s/officiate fees.

According to the report, average funeral costs have increased by over 50% in the last 10 years. If the rise in funeral costs continues to follow this trend, projections estimate that a basic funeral could cost around £5,044 by 2025.

The rate of inflation on funerals is a major influencing factor on why so many people choose to take out a funeral plan. By prepaying for your funeral today, you’ll benefit from paying a fixed price with no need to worry about how much your family will be expected to pay when the time comes.

Old man on his laptop

Does a funeral plan save money?

A prepaid funeral plan is fixed at today’s prices, they aren’t affected by the increase in industry fees. Taking on board the estimated projections we mentioned above, if you were to die in 10 years time, your funeral could likely cost over £10,000, and even more than £5,000 just 3 years from now.

What you pay for a funeral plan today will never increase over time, therefore protecting you and your family from the rising cost of funerals. Prosperous Life’s funeral plans start at just £3,595, with this set price covering the funeral director’s services, the coffin, hearse and more, including £1,000 towards disbursement costs. Click here to find out more about our Silver, Gold and Platinum funeral plans.

How can I pay for a funeral plan?

By planning your funeral in advance, you’ll be able to choose how and when you want to pay. This is one of the main advantages of a prepaid funeral plan compared to organising a time of need funeral. You don’t need to have all of the money ready to pay today. In order to make funeral plans affordable and accessible to everyone, monthly payments can be made over an agreed period of time until the full amount has been paid.

If your financial situation changes and you’d like to make some larger payments in order to pay the full amount off in a shorter amount of time, you’ll be able to do that too.

Should you already have the money needed to cover the cost of your plan, you can choose to pay in full by making one single payment. This way, you know that your arrangements are paid for.

If you’re looking to buy a Prosperous Life funeral plan, our team will discuss all of your payment options with you. Click here to request a callback.

Old man on an iPad


Is my funeral plan money secure?

One of the core advantages of a pre-paid funeral plan is the security and peace of mind it brings you, but how do we achieve this? Setting aside a large sum of money with a business will always be a daunting prospect, and so at Prosperous Life we do everything within our power to make how we hold your money as secure and transparent as possible.

All customer money is held in the independent and highly regarded The Great British Funeral Trust. They answer to a board of experienced trustees, who work hard to ensure your money is secure for your time of need.

Why choose a funeral plan over saving for a funeral?

Saving can be difficult

Doing it “the old fashioned way”, and creating your own pot of money for a funeral is still a popular choice, but for many it is somewhat flawed in that you might not be able to save enough for the funeral you want. With a pre-paid funeral plan you discuss and arrange your funeral in advance, giving you plenty of time to pay the costs in easy instalments if you wish, knowing that the right amount of money will be there when needed.

Holding your own money in a traditional savings pot can also lead to temptation. While we are fully committed to the notion that your later years are for getting out and enjoying, having a bulging sum of money to hand might make that Caribbean cruise look a little more tempting, leaving your family short when the time comes.

A prepaid funeral plan means that while your money is your own, and can be recovered at any time, it is not sat within the reach of temptation that could cause you regret.

Avoids cash-flow problems 

If you are able to afford premium services for a funeral then we advise purchasing the services as funeral plans can help your family during what will be a difficult time. A prepaid funeral plan will prevent family problems in the future and will help to ease some of the burden at a sad and emotional time.

Setting aside money to pay for funeral expenses can seem like a good idea but with the uncertainty of the rising costs of funeral, this may not cover what is needed when the time comes. A prepaid funeral plan fixes the cost at today’s prices, meaning you don’t have to worry wondering if what you have set aside will be enough when the time comes

Old woman on her laptop

Prepaid plans are exempt from inheritance tax 

When you pay for a pre paid funeral plan this will be exempt from inheritance tax as this has already been paid for. Inheritance tax is a tax on the estate of the loved one who has sadly died, their estate can include possessions, property and money. 

There is usually no inheritance tax to be paid if the estate is below the Nill Rate Band £325,000, however if the estate is above that amount then the Inheritance tax would be 40% on the value of the estate. This is why it’s an advantage having a pre paid funeral plan because it will prevent you paying anymore money which is what your family will not want to be doing in their time of grief.

Easier to make arrangements

Creating a funeral plan is never easy to do, it can increase your family’s anxiety just the thought of it. But having a prepaid plan in place instead of leaving it till the time of need will have so many benefits for you and your family. Not only will there be less stress on your family but choosing a prepaid plan will ensure that your funeral wishes are known, further reducing pressure on your family. 

Furthermore, it makes financial sense to make the arrangements yourself as once this is done you won’t need to worry about it after that. You can go on enjoying life with the peace of mind that your funeral arrangements are taken care of, which is another great benefit for you.

Old woman and daughter


If you would like to arrange your own pre-paid funeral plan, either for the security or convenience it brings, you should contact our helpful team by clicking here. We’re always around to give you the support you need, and so you can make the right choice for you.

Secure your future, and that of your family, with a Prosperous Life funeral plan today!

This page is for information purposes only and by no means offering any form of advice on any regulated product that may or may not be covered under FCA rules.

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