How to pay for your own funeral
Paying for your own funeral is not the sort of spending any of us look forward to, but it’s something we all have to consider later in life. Funeral costs are not getting any cheaper and prices can vary substantially depending on where you live in the UK, and whether you opt for a burial or cremation. Average UK funeral costs have risen from £2,971 in 2011 to £4,163 in 20201. If prices keep rising at the rate they did between 2011 and 2020, the average funeral could cost £5,833 by 20292.
Is it smart to prepay your funeral?
Some say it’s smart to prepay for a funeral, while others are happy to stump up the cash through their estate when the time comes. Either way, funerals can be expensive, so it pays to plan ahead and think about how your funeral will be paid for.
Paying for your own funeral may be a significant expense for you to think about covering, especially if you have a more elaborate service in mind or the costs include paying for a burial plot. It's worth trying to estimate what the likely costs will be, and then looking into ways you can begin putting plans in place to help pay them.
Can you pay for your funeral before you die?
The short answer is yes – you can pay for a funeral in advance through a funeral payment plan. A prepaid funeral plan is an option for those who wish to pay for a funeral in advance at today’s prices. If you're considering one, ensure you read the information thoroughly as not all UK funeral plans are the same.
How does a prepaid funeral plan work?
A prepaid funeral plan will usually cover the essential costs of a funeral director, including the coffin, care of the body, cars and pall-bearers, plus either the cost of cremation or a burial, depending on your preference. It’s unlikely to cover other costs such as a wake, floral tributes or a headstone. Paying for a funeral in advance may tie you to a particular Funeral Director or funeral company, which may become difficult if you move in the intervening years. Also, what’s offered can vary a great deal, so make sure to check that everything you want is covered on any plan you take out.
Once you’ve paid the agreed amount in your funeral payment plan, the parts of the funeral included in the plan are covered when you die. The provider will pay the money straight to the Funeral Director, so your friends or family won't have to get too involved in the financial or administrative side.
If consumer protection is important to you, check that your funeral plan provider is registered with the Funeral Planning Authority – the regulator for UK funeral plans. You won’t pay Inheritance Tax on your UK funeral plan.
How much does a prepaid funeral cost?
As a rough estimate, a one-off funeral plan payment could cost you up to £5,000, but you could potentially get a more basic plan for under £3,000. People understandably want to know how much a prepaid funeral costs, but in reality, it depends on whether the size and scale of your funeral and if you’d like to pay a lump sum or monthly instalments – you could expect to pay at least £20 a month.
No one expects paying for your own funeral to be fun, but whichever option you choose, you can enjoy the peace of mind that comes from knowing that you’ll have helped your loved ones by making things easier for them at a difficult time.
1. Independent research by Matter Communications on behalf of Dignity in 2020.
2. 2020 - 2029: Forecast based on average annual compounded growth rate of 3.82% each year between 2011 and 2020.