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. It's also worth knowing you won’t pay Inheritance Tax on your UK funeral plan.
From 29 July 2022, the Financial Conduct Authority has regulated the Funeral Plans sector. This will provide customers with enhanced protection if they take out a prepaid funeral plan from an FCA authorised provider. Read more information on the FCA Regulation of Pre-Paid Funeral Plans.