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Join Which? Money4 things to watch out for when buying a funeral plan
We weigh up the pros and cons of paying in advance for a funeral
Two thirds of bereaved adults report feeling stressed about funeral costs, according to research from insurer MetLife.
One way to ease the burden on your family and friends is to pay for your funeral in advance by taking out a plan. But it’s important to understand how these plans work, as they don’t cover everything.
Here, Which? explains how funeral plans work and lists four things to watch out for before buying one
Why plan ahead for your funeral?
In MetLife’s survey, 30% of those who felt stressed said it was because they were unsure whether they could afford the funeral, while 25% said they didn’t know whether a plan was in place outlining their loved one’s wishes.
The average cost of a simple attended funeral hit £4,285 in 2024, according to financial services provider SunLife, while direct cremation cost £1,597 on average.
When you take out a funeral plan, you choose the type of funeral you want and pay for it in advance, so your family can be confident they’re carrying out your wishes.
You can nominate a loved one for the plan provider to contact and, when you die, it will work with your family and the chosen funeral director to organise the arrangements.
- Find out more: how should you pay for your funeral
How your money is protected
The provider will either put your money in a trust or invest it in an insurance plan that pays out when you die.
Funeral plans are protected against inflation, meaning there won’t be any extra for your family to pay if the cost of your chosen funeral rises (SunLife forecasts that the average cost of a simple attended funeral will reach £5,000 in the next three years).
The funeral plan sector has been regulated by the Financial Conduct Authority (FCA) since July 2022, so your money (up to £85,000) is protected if the firm goes out of business.
What does a funeral plan cover?
Most providers offer tiered plans, with what’s included depending on how much you choose to spend.
You might assume that funeral plans cover cremation or burial costs as standard, but that’s not always the case. Some guarantee these fees, while others only include a contribution towards them – meaning your family may need to pay the difference.
A Which? survey conducted in July 2024 of 266 members who either had a funeral plan or were considering one found that around a third were unaware that a prepaid plan might not cover all costs, while one in eight said they were unsure.
Direct cremation plans usually cover an unattended cremation, transport for the deceased and a basic coffin.
Attended funeral plans typically include the funeral director’s services, transport, coffin, hearse, service and a contribution towards cremation or burial fees.
The most expensive plans may also guarantee these costs and include extras such as limousines or additional viewings.
It’s essential to check exactly what’s included, as many plans don’t cover significant costs such as flowers, catering or burial plots.
- Find out more: funeral plans explained
How much funeral plans cost
The cost of a funeral plan varies depending on the provider and what’s included. Most offer several options, from basic direct cremation plans to more comprehensive attended funerals.
The table gives an idea of what you can expect to pay with five large national providers.
We’ve compared the cost of a direct cremation plan, the cheapest standard funeral plan and the most expensive funeral plan - although optional extras may cost more.
| Provider | Direct cremation plan | Standard funeral plan | Premium funeral plan |
|---|---|---|---|
| Avalon | £1,675 | £3,895 | £4,495 |
| Co-op | £1,650 | £2,845 | £3,910 |
| Dignity (a) | £1,799 | £3,725 | £4,947 |
| Golden Charter | £1,885 | £3,130 | £4,335 |
| Golden Leaves | £1,700 | £3,725 | £4,135 |
Correct as of October 2025. Costs are illustrative and not a like-for-like comparison. Check providers' websites for full details of each plan. (a) Prices start from figure shown.
There’s no industry standard for what each type of plan includes, so it can be tricky to make direct comparisons. You’ll need to look carefully at what each provider offers to understand what you’re paying for.
Funeral prices also vary by region, and you may find that your local funeral director offers cheaper plans than national providers.
- Find out more: funeral prices hit record high
4 things to check before you buy
Before you commit to a plan, make sure you understand the potential pitfalls:
1. High interest rates
If you need to spread the cost, most providers will allow you to pay over 12 months interest-free, and you may even be able to find longer 0% interest deals: a market study by consultancy firm Funeral Solution Expert found some lasting up to five years.
But be careful of options that allow you to pay over a longer period, as most will charge interest: Funeral Solution Expert found interest rates on instalment plans ranging from 4.85% to 18.06%.
2. Contribution vs guaranteed plans
It’s important to understand the difference between ‘guaranteed’ and ‘contribution’ plans.
A guaranteed plan will cover the costs associated with cremation or burial, whereas contribution plans only pay a fixed amount towards these costs, meaning your loved ones may need to make up the difference.
Check the terms of your plan carefully, to make sure you understand what is and isn’t covered.
Even guaranteed plans don’t cover the cost of a burial plot or a headstone, so you’ll need to make arrangements for these.
3. The collection radius
Some providers will collect the deceased from anywhere in the UK, while others may specify an area (for example, within 50 miles of the funeral director’s premises).
If you buy a plan with a limited collection radius, there may be additional charges if you die away from home.
It’s especially important if you plan to move home in the future. If your chosen funeral director doesn’t operate in your new area, it could cost you extra to switch or you may have to cancel your plan.
4. Cancellation fees
It’s important to understand your options if you change your mind. Under FCA regulations, all funeral plan providers must provide a full refund if you cancel your plan within 30 days.
After the cooling-off period, companies are allowed to charge a reasonable admin fee for cancellation, but not all do. For example, Avalon charges a £395 cancellation fee for fully paid plans, while Dignity will allow you to cancel free of charge at any time.
