How to choose the right direct cremation funeral plan

Just like any financial product, funeral plan terms and conditions can be confusing. To make sure you understand exactly what’s covered, don’t be afraid to talk it through with the providers you’re considering, whether you're talking to a local funeral director in person, or with someone over the phone. For example, most direct cremation plans include:

• Collecting the person who has died

• Completing all the necessary paperwork

• Caring for the person until the cremation

• The cremation itself, including fees for the crematorium, a simple coffin and a container for the ashes

Some plans may not cover certain additional costs, such as:

• Urgent 24 hour collection (for example, if someone dies at home)

• Collection over a certain distance away

• Removal of medical devices (for example, a pacemaker)

• Hand delivery of the ashes

Ask the provider to give you a detailed breakdown of what’s included and clarify any exclusions. This will help you to avoid any misunderstandings that could leave your family with unexpected expenses in the future.

For lots of people, cost is a significant factor when it comes to choosing a prepaid funeral plan. Be sure to compare prices from multiple providers and think carefully about how you'd like to pay for the plan. Many funeral plan providers offer flexible payment options, such as:

• A one-time lump sum payment: You’ll pay for the cost of the plan upfront, and you’re fully covered by the plan as soon as you’ve paid for it. 

• Monthly installments over a set period, often 12 or 24 months: Paying over 12 or 24 months is a good option if you don’t have the money available upfront. The payments are usually interest-free, although there’s typically an admin fee (around £100) to set up the payment plan. Should you die before the payments are complete, the provider will refund the money you’ve paid to your loved ones, or they can cover the difference to continue with the funeral.

Choose a payment plan that fits your budget, but also be sure you’re clear on the total cost, including any additional charges for spreading payments over time. 

Just like choosing any kind of financial product, trust is paramount when you’re choosing a funeral plan provider. In the UK, the Financial Conduct Authority (FCA) regulates all funeral plan providers to ensure they meet specific standards for protecting your money, for example:

• Your payments are protected even if your funeral plan provider goes bust Even if your provider goes out of business in the future, they must have arrangements in place to either refund the money you’ve paid, transfer your plan to an equivalent funeral plan provider or ensure that a new regulated provider carries out the funeral. 

• You’re protected by the Financial Services Compensation Scheme (FSCS) Should your provider go out of business, the FSCS will ask if you want to receive replacement cover. If you don’t, or if there is no equivalent cover available, you can choose to receive compensation instead. 

• You can make a complaint to the Financial Ombudsman Service (FOS) Should you have a reason to complain to your funeral plan provider and they cannot reach a satisfactory resolution, you can contact the Financial Service Ombudsman. This is a free, independent service that aims to resolve disputes fairly and impartially. 

You can check your funeral plan provider is registered with the FCA by typing their name into the Financial Services Register.

Reading customer reviews is another effective way to understand more about how the provider operates and how they’ll treat your loved ones when the time comes. Look for feedback about their customer service and how efficiently they handle arrangements.

Whether your circumstances change or you’ve simply changed your mind, you may need to cancel your funeral plan. Before signing up, ask the provider about their cancellation policy. Will you receive a full refund if you change your mind within a certain time period? Are there fees for cancelling later on?

If you’re planning on moving home in the future or think it could be likely, it’s also important to check whether your provider will still be able to fulfill your plan. Ensure they cover other areas or will allow you to transfer the plan if you need to, and check whether additional costs apply.

Once you’ve chosen a prepaid funeral plan, it’s important to let your loved ones know about it. Share the details of the plan and explain where you’ll be keeping your documents. This will help them easily access the information when the time comes and prevent any confusion or delays in carrying out your wishes.

It could also be useful to explain more about why you’ve chosen a direct cremation, and how you would like to be remembered.