How funeral plans can protect against rising funeral costs

Funeral costs have been steadily rising over the years. In January 2025, insurance provider SunLife published their latest Cost of Dying Report. They claimed that average funeral costs had risen 134% since their first report 21 years ago. The report puts the cost of the average burial in 2024 at £5,198 and the average cremation at £3,980 – and that’s without including the extras, like a wake or a send-off.

When you take out a prepaid funeral plan, you secure today’s prices. This means that regardless of inflation or market changes, your funeral costs will remain fixed, saving your loved ones from hard-to-calculate financial burdens in the future.

The cost of a funeral can be a significant expense, and covering these costs at short notice can place a heavy strain on families. According to the SunLife report, 18% of families experienced notable financial concerns when paying for a funeral in 2024. A prepaid funeral plan can help alleviate this stress by ensuring that the major costs are covered in advance.

Flexible payment options

Prepaid funeral plans often come with a range of payment options to suit different budgets. Whether you prefer to pay in a single lump sum or spread the cost over monthly instalments, these flexible arrangements can make it easier to manage your finances while locking in today’s prices.

Transparent and predictable costs

By prepaying for your funeral, you’re effectively insulating yourself and your loved ones from rising costs. Cremation fees, the cost of a coffin and administrative charges are all subject to inflation, but a prepaid plan ensures you won’t be affected if costs rise. And you’ll know exactly what you’re paying for, making it easier to budget and plan for the future. 

Make sure that you compare funeral plans before you buy, and read through their terms and conditions. Items that may be included with one plan could cost extra with another when the time comes. If you have questions, talk them through with each provider – any reputable funeral plan provider should be happy to help.

Funeral plans come in all shapes and sizes, from horse-drawn carriages and traditional burials to simple cremation services. The plan you choose will depend on the type of funeral you’d like – and your budget.

For people seeking a more affordable option, a direct cremation funeral plan can be a good solution. A direct cremation is simply an unattended cremation: a cremation without a service at the crematorium. Sometimes described as a ‘no-fuss’ funeral, or a modern alternative to a traditional funeral, its popularity has increased over the last 20 years. Many people choose a direct cremation because they’re:

• More affordable: Without the extra cost of things like flowers, an organist or procession of funeral cars, a direct cremation is typically the most budget-friendly choice.

• Simple: There are no complicated decisions for grieving families. 

• Personal: Instead of visiting the crematorium, which lots of people find impersonal, many families choose to say goodbye by arranging their own memorial, a celebration of life party or by gathering to scatter the ashes after the cremation. Others prefer to keep it simple, with a quiet day of reflection at home. A direct cremation gives families the freedom to choose.

Planning and paying for a funeral in advance can give you peace of mind. Once you’ve set up your plan it’s important to talk to your loved ones about it to let them know. Find out more about how to choose the right funeral plan.