Alternatives to Funeral Plans

3 Secret Ways to Fund a Funeral, Other Than a Funeral Plan

While Funeral Plans Are Popular Ways to Cover Inevitable Costs, Other Options May Suit You Better. We've Got Fantastic Alternatives to Share!

Funeral Plan Alternatives

Funeral Plan Alternatives

Think about this for a moment

With the cost of funeral plans constantly on the rise, more families are looking for alternative ways to plan their loved one’s final arrangements.

One way to protect your family against the expense of a funeral is to take out a financial product that will cover the costs. One of the most popular products is a financial plan.

Before we dive into funeral plan alternatives, let’s define the funeral plan first.

What is Funeral Plan?

Funeral plans are a type of insurance policy that allows you to pay for your funeral in advance. Most funeral plans1 enable you to make the arrangements for your funeral in advance, ensuring your end-of-life wishes are carried out.

However, there are alternatives to a funeral plan:

Life Insurance Policies

Life Insurance Policies

​One option is to take out a life insurance plan designed for those over the age of 50. These insurance plans pay your family a fixed lump sum on your death. But there are some shortcomings to these plans. The greatest disadvantage is that the pay-out is set and will not increase to meet inflation. You could end up paying out more in premiums than your family gets back.

​For example: ​

If you purchase a £10-a-month policy when you turn 50, with a pay-out of £2,767, by the time you reach 73, you will have paid the same amount as the claim.

However, these products are usually sold without the requirement of medical screening and are a good option for those unable to afford standard life insurance due to health issues.

Savings Accounts

Savings Accounts

​The biggest benefit of putting money away into a savings account is earning interest on your funds. However, your earnings in interest may not match the rising costs of funerals.

The rise in funeral prices is estimated at around 4%, with the average funeral coming out at approximately £3,757. Burials and cremations cost in the region of £4,267 and £3,247, respectively.

The bottom line?

It would be best to set up the savings account jointly with a trusted family member, to ensure they can access your savings after your death.

Estate Payments​

Estate Payments​

​Your funeral cost can be paid from your estate, and most banks or building societies will usually release the funds if they are given a copy of the death certificate and itemized billing compiled by the funeral director. The estate’s executor will cover the funeral costs2 on the invoice, or a friend or family member will be able to pay for the funeral and claim the money back from the estate.

Got Questions? Check These First

[COSTOM_FAQ]

In Conclusion

In short,

We are all aware of the rising cost of funerals and it can be an expensive responsibility to leave your family. However, there are ways to ensure your loved ones will be left with the funds they need after your death.

You may also like

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Alternatives to Funeral Plans

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
francis.jpg

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.