What are the alternatives to buying a prepaid funeral plan?

What are the alternatives to buying a prepaid funeral plan?

The main aim of a prepaid funeral plan is to give your family peace of mind that the funeral director’s fees are covered, no matter how much they rise in the coming years. Whilst prepaying for your funeral in this way can be a good investment, there are alternatives.

Easy access savings account
Set up in joint names, an easy access savings account will ensure family members can get hold of funds whenever they need it.

A Cash ISA
Will your Cash ISA to an individual. If it’s not willed, it will automatically form part of the estate.

Over 50s and other life insurance policies
Unlike prepaid funeral plans that are designed to pay the funeral costs, over 50s and other life insurance policies pay out a lump sum on death and can be used to pay for anything, not specifically the funeral.

Paying from the estate
Funeral costs can be paid from your estate and distributed to the beneficiaries before grant of probate – the legal process that needs to happen before the deceased’s assets can be distributed to the beneficiaries of the will. This means that funds for the funeral should be available to next of kin even if other aspects of the estate’s administration are held up.

No money?
If you are unable to put money aside to pay for a funeral now but still want to plan ahead, the National Association of Funeral Directors (NAFD) – in association with Dying Matters – has a free document you can download to record your funeral wishes. Remember to update it regularly and to give family, friends, a solicitor or a doctor a copy, or let them know where they can find it. You can also add your funeral wishes to your will. You can download the My Funeral Wishes document here.


Did you know?

Where there are sufficient assets in the estate, and before all other aspects of administering a person’s estate, a bank or building society will typically release funds to pay for the funeral. In order to do this they will need an invoice from your funeral director, a certified copy of the death certificate and an original copy or certified copy of the will confirming who is entitled to deal with the estate.


Kim Bird is the founder of the comparison and review site About the Funeral and Editor of the bereavement support and funeral planning magazine, Day by Day.

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