How Are Pre-Paid Monthly Funeral Plan Costs Worked Out?

From the outset, I want to be transparent and honest with you. Getting exact prices for a funeral plan without knowing your exact personal circumstances doesn’t work, there are lots of variables involved in getting an accurate quote even down to where you live in the country.

We wrote an article about funeral price increases in different regions of the UK which is certainly worth a read.

So, if you are reading this article thinking we are going to give you a definitive personal price, sadly, you are going to be disappointed.

However, if you want to know more information about the general pricing structure and how companies price a funeral plan and what variables are taken into consideration, then this is the article for you.

Looking for other information on funeral plans? This guide has info on 'How much do funeral plans costs?' We have also written extensively about:

• - Are funeral plans regulated?
• - How do pre-paid funeral plans work?
• - How many funeral plans can you have?
• - Monthly Funeral plan costs explained
• - What happens if I die midway through the plan?
• - Funeral plan - vs - life insurance - what is the difference?

We update all our guides regularly. If you are researching funeral plans and we haven't got an exact guide that helps you, keep coming back as we update daily.

Variables of Pricing a Funeral Plan

Pre-paid Funeral plans take into consideration a range of different variables when providing a price. These include

Your age – most plans prices are based on 20 years. However, when you reach 90 years old, the plan costs stop with most providers.

So, if you are 60 years the plan will be priced until you are 80 years, meaning you will pay the minimum per month for the 20 years.

However, if you are 75 years old, the monthly price has to increase as you are only going to be paying for 15 years as the payments will stop when you hit 90.

That’s variable number 1

Funeral Plan: Variable Number 2

Where you live in the country – Sadly, in the south of the country, various things cost more. So if you are looking for burial in London where a plot can cost up to £9,000, compared to somebody living in Sunderland where a plot is considerably less, the policy charge will reflect that.

Funeral Plan: Variable Number 3

The plan itself – which cover have you decided to go with. 

Almost all funeral plan companies offer multiple packages (we wrote about it in an article called ‘How much do pre-paid funeral plans cost

So, if you decide to go for the basic package which is only £3,000.00, then the monthly instalments are going to be less than the premium package for £6,000.00

However, and this is where it can become quite complicated and why we have moved away from trying to provide an accurate quote per person who reads this article.

There is also an annual premium that is included in the cost.

As an example, my father, who is 63 and lives in London got a quote from Sunlife for their ‘Traditional’ burial package which came in at £4,297.

Key quote variables;

• My Father is 63
• Lives in London
• 20-year plan
• Deposit Value

The annual premium worked as follows;

These numbers are rough estimates, and you should always consult your financial advisor.

The yearly premium increase is £1.16, that takes into consideration the average funeral price increase throughout the UK.

So from the original quote of £4,297.00, we have finished up on £8,525 once the plan has been fully paid for.

Remember, these numbers are calculations based on us getting numerous quotes. Putting a minimum deposit down of £250.00 – if you want to increase the deposit, the monthly premiums will decrease.

Our Conclusion

Research is vital to make sure you understand the pricing structure and especially to make sure you know what you are paying for.  

With funeral plans, there are not so many hidden costs, but additional costs that haven’t been included in the cover you purchased which will mean family members picking up the bill – make sure the plan meets your requirements, and you can afford the monthly payments.

How Can Money Savings Advice Help You With a Funeral Plan?

Here at Money Savings Advice, we have partnered with some of the UK’s leading Funeral Plan brokers. They have already helped thousands of people get the best Funeral Plan deal and they can do the same for you.

Choosing an independent adviser means they won’t recommend a scheme unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.