A pre-paid funeral plan lets you arrange and pay for a funeral in advance, fixing today’s prices and easing the financial and practical burden on your family. Since July 2022 these plans are regulated by the FCA.
Key facts (2026)
- Average UK funeral now costs around £3,828; a direct cremation about £1,628.
- Pre-paid plans are FCA-regulated and protected by the FSCS.
- Plans typically fix the funeral director’s services; third-party costs may only be partly covered.
- Different from over-50s life insurance, which pays cash rather than providing a funeral.
What a funeral plan covers
A plan usually covers the funeral director’s core services (collection, care, a coffin, hearse and arranging the funeral). For cremation or burial fees and other “third-party” costs (the doctor, minister or celebrant, the cremation/burial fee), a plan may pay a fixed allowance rather than the full amount — so check what’s guaranteed and what could be left for your family to top up.
Plan vs insurance vs saving
- Pre-paid funeral plan: fixes the funeral itself at today’s prices; best for certainty on the funeral.
- Over-50s life insurance: pays a cash lump sum that may or may not cover the full cost; you could pay in more than it pays out.
- Saving / earmarked funds: flexible, but exposed to rising costs and may be counted in a means test.
See full figures in our UK Funeral Costs 2026 report.
How to compare plans safely
- Check the provider is FCA-authorised (search the FCA Register) and FSCS-protected.
- Read exactly what’s guaranteed vs an allowance, and whether your chosen funeral director is included.
- Check what happens if you die away from home, and the cancellation terms.
Not financial advice. General information only. Pre-paid funeral plans are FCA-regulated — check a provider is FCA-authorised and covered by the FSCS before buying, and take independent advice if unsure. Figures are 2026 guides (source: SunLife Cost of Dying 2026) and change over time. Last reviewed June 2026.