Costs to look out for when buying a pre-paid funeral plan

27 April 2016

Each type of duneral plan promises to fulfil the exact purpose for which it was originally designed: to cover the costs of a funeral. What else is there to think about?

Forgotten funeral costs

Some funeral plans allow you to make a contribution towards third party costs, such as crematorium charges or church fees. These are known as ‘disbursements’. No matter which funeral plan you choose, it's worth thinking about including a contribution towards these costs, and here's why.

Those who choose to take out a funeral plan usually do so in order to reduce the financial and emotional impact for friends and family who would otherwise be left to make the arrangements. And while a pre-paid funeral plan lets you pay for your funeral director's services in advance, there may still be additional costs to pay at the time of the funeral. This is because the cost of things like burials and church services are provided by third parties and are therefore outside of the funeral director's control. Fluctuating all the time, it is possible that these costs could exceed the contribution included in your funeral plan. If this were to happen, your family and friends would be asked to pay the difference at the time.

The amount that funeral plan providers set aside for third party costs varies massively. When comparing funeral plans then, we recommend you look closely at how much you can put aside for disbursements.

Many of the local funeral directors we work with have been serving their communities for generations and have experience of how these costs have fluctuated over the years. Although it's impossible to predict what might happen in the future, a local funeral director will have the knowledge and expertise to advise you when it comes to deciding on a suitable contribution amount.

Comparing funeral plans can feel like a fruitless exercise, but giving some thought to your disbursement contribution is definitely worth doing and could save your family financial heartbreak in the future.