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Two Together: Save £100!Save £100 when you purchase two funeral plans together. Call us for more details.
Written by Mitch Tapner.
15 minute read
Prepaid funeral plans can be a good idea if you want to plan ahead, manage future funeral costs and make things easier for your loved ones. By arranging and paying for certain funeral services in advance, you can make your wishes clear and protect your family from potential price increases on the services covered by your plan. However, there are also some disadvantages worth considering before making a decision.
Thinking about your own funeral isn’t always easy, but having arrangements in place can bring peace of mind. You might be wondering whether prepaid funeral plans are worth the money, what happens if your circumstances change or whether your family could face any additional costs. Understanding the benefits and limitations can help you feel more confident about your options.
In this guide, we’ll explore the pros and cons of prepaid funeral plans in the UK, including fixed pricing, financial protection, potential exclusions and cancellation terms. We’ll also explain how funeral plans work, what to look for in a provider and the alternatives available, so you can decide whether paying for your funeral in advance is the right choice for you and your family.
Key takeaways:
If you’d like to know more about how to plan a cremation with Aura, our brochure is a helpful place to begin.
Our funeral plans are a helpful way to put everything in place for you or someone else.
When the time comes, our experienced team will be here to guide you through each step, offering support and advice whenever you need it.
To find out more about how our plans work, what’s included, and our story, you can request a brochure by clicking the link below. We will then send you a copy by email or First Class post—whichever you prefer.
If you’ve ever wondered what is a funeral plan, it’s simply a way to arrange and pay for your funeral ahead of time, helping protect your loved ones from financial and emotional strain later on. You pay a fixed amount, and when the time comes, the provider carries out the cremation or burial according to your wishes.
Most plans cover key services such as the funeral director’s time, a simple coffin, collection of the person who has died, and transport to the crematorium or cemetery. What makes prepaid plans unique is that they aim to ease both the financial and practical burdens, helping families at a time when clarity matters most.
Many people consider a prepaid plan because they want to take control of something we’ll all face one day. It can be especially reassuring for those who’ve seen loved ones struggle with funeral costs, or who simply prefer to be prepared.
It’s also about peace of mind. Funeral prices are rising each year. A prepaid plan locks in the cost at today’s prices, which can be a real relief, particularly for those who may want to protect their loved ones from facing the expense of a funeral at an already difficult time.
For many families we support, it’s a thoughtful way to care for their family. For others, it’s a comfort to know their farewell will reflect their wishes, without leaving their loved ones guessing how to plan a funeral.
One of the most practical reasons to choose a prepaid plan is cost certainty. You agree to a set price now, even if your funeral takes place years down the line.
This protects your family from potential future price rises, something we’ve seen steadily increase over the last decade, according to Legal & General.
For people managing their budget in retirement or planning ahead for inheritance, it’s one way to reduce financial surprises and help with funeral expenses.
Aura offers prepaid cremation plans with clear, upfront pricing. Costs vary depending on the type of funeral plan you choose, but our unattended direct cremation plan starts at £1,795, which covers all the essential services needed for an unattended direct cremation and there will be no hidden extra fees or anything for your family to pay to us when your funeral is needed.
If you are looking for an impartial view on the costs involved, Martin Lewis’ Money Saving Expert has also given a financial breakdown of prepaid funeral plans. We explore this topic in our article, does Martin Lewis recommend funeral plans?
Learning how to deal with grief is hard enough without the added worry of arranging a funeral. With a prepaid plan in place, your family won’t need to make potentially difficult decisions or figure out how to cover costs when they’re grieving.
This can be especially helpful if you don’t have close family nearby, or if your loved ones are managing the estate under pressure.
Simply put, it’s one less thing for them to think about.
For many people, prepaid plans aren’t just about the money; they’re also a way to make sure your send-off reflects your wishes.
Many plans let you record your wishes in advance. Whether it’s a favourite song, a reading, or choosing no ceremony at all, having your say with a prepaid funeral plan can ensure that your funeral comes with as much or as little fuss as you’d like.
With Aura’s direct cremation plans, for instance, you can plan a simple, unattended direct cremation if you prefer no fuss. When the time comes, we’ll bring you into our care, carry out the cremation and hand-deliver the ashes to your loved ones. If you’d rather something a little bigger, we also offer attended services from as little as 10 minutes for up to 15 people, or a full 40-minute service up to the maximum capacity of your chosen crematorium from within our network
It also removes the guesswork for those left behind, so they’re not worrying about what you would have wanted at an already difficult time.
Terms and conditions apply. Not all services may be included. Please review the plan summary for full details.
Not all prepaid plans are fully inclusive. Some don’t cover third-party costs like collection from non-mortuary facilities or returning ashes.
This can lead to unexpected bills at a difficult time.
Aura plans are clear and inclusive from the start, so there will be nothing for your loved ones to pay towards your funeral with us. But, if you’re unsure, it’s always wise to ask what’s included, and just as importantly, what isn’t, before choosing a provider.
We do recognise that, sadly, there were a small number of providers in the past who went out of business and left consumers without compensation. So, we understand that there may be a little uncertainty around funeral plans after this.
However, since July 2022, all UK funeral plan providers must be authorised and regulated by the Financial Conduct Authority (FCA). This means customers benefit from greater protection, including access to the Financial Services Compensation Scheme (FSCS) if a provider fails.
Aura is authorised by the FCA to offer funeral plans, which involves us meeting strict requirements. This includes protecting the funds given to us. When you pay for a funeral plan with Aura, the money needed for your funeral is placed into an independently managed trust which is kept separate from the day to day running of the business.
If Aura were to go out of business, arrangements are in place to help protect customers. Your plan may be transferred to another regulated provider, or you may be eligible for compensation through the Financial Services Compensation Scheme (FSCS), subject to its rules.
Most funeral plans are based on a specific service. For many people, that’s fine. But if your circumstances change, if you move abroad, for example, or change your mind, you may find it harder to make changes or cancel.
Some plans come with large cancellation or administration fees, which can make it difficult to adapt your plan if your circumstances change.
With Aura’s plans, there are no cancellation or administration fees, so that if your circumstances do change, your plan can change with them at no additional cost. You’ll only pay extra if you upgrade your plan.
Before you buy, check the cancellation terms, and make sure the plan works for your future needs, not just today.
Prepaid funeral plans can be a good idea for people who:
Prepaid funeral plans are often taken out amongst wider end-of-life planning, such as creating a will or appointing a lasting power of attorney, helping to make things easier for those closest to you
Prepaid plans aren’t for everyone. You may prefer to keep money in savings or take out over-50s life insurance, which can offer more flexibility, however it is worth considering the pros and cons of using life insurance to cover funeral costs, as this may not always be the most practical approach.
If you’re younger, still building your finances, or planning to move abroad, a funeral plan might not be the best fit.
And if your family is local, informed, and financially able, they may feel more comfortable arranging things themselves when the time comes.
A dedicated savings pot for funeral costs can be a suitable alternative for some, however you may want to remain mindful of funeral costs and the potential increase each year to ensure that your loved ones aren’t left with more to pay.
Before choosing a prepaid funeral plan, it’s worth asking a few questions to make sure you understand exactly what you’re paying for. A trustworthy provider should be happy to explain everything clearly, without making you feel rushed or pressured into making a decision.
Here’s a simple checklist of questions to ask any funeral plan provider:
It’s also worth taking time to compare funeral plans from different providers. Looking beyond the price to consider what’s included, how flexible the plan is and the support available can help you find an option that feels right for you and your family.
You don’t need to make a decision straight away. Take your time, ask as many questions as you need and make sure you’re comfortable with the answers before committing to a plan.
Look for companies that:
Aura, for example, is the top-rated national ‘cremation services’ provider Trustpilot, indicating both reliability and customer satisfaction.
Don’t underestimate the value of personal interaction, either. A provider that explains things clearly and answers questions with patience is likely to be just as dependable when it really matters.
At Aura, we know planning your own funeral isn’t always easy, but it can be one of the kindest things you do for your loved ones.
Our prepaid plans are simple and inclusive, with clear, upfront pricing and no hidden costs for the services included. Aura is authorised and regulated by the FCA, and the funds needed to provide your funeral are held in an independently managed trust, separate from the day-to-day running of our business.
We offer both direct cremation and small attended services, so you can choose what suits you best. Every plan includes personal touches, like music choices, and support from real people who care. Whether you’re ready to plan or just exploring your options, we’re here to help with clear answers, honest advice, and no pressure.
*Aura is authorised and regulated by the Financial Conduct Authority. Funeral plan terms apply.*
If you have any questions, would like a brochure or simply would like a chat through our services, our award-winning team is here to help.
Unlike other providers, we won’t hassle you with constant calls. We’ll simply ensure you have the information you need and leave you to come to a decision in your own time. When you’re ready for us, our team will be ready to help.
Our team is available Monday–Friday, 9.00–5.00pm.
A prepaid funeral plan lets you arrange and pay for your funeral in advance. You fix the cost at today’s prices and choose how you’d like things done. This can include the cremation or burial, collection of the person who has died, and other arrangements like music or ashes return. It gives you control and saves your family from future stress or surprise expenses.
They can be, especially if you’re trying to ease the emotional and financial burden on your family. Locking in current prices protects against inflation, and having arrangements sorted in advance removes guesswork. That said, they may not be for everyone, some people prefer saving or using life insurance instead, however it’s worth researching the pros and cons of all possible options to ensure you’re making the right decision for you.
Check if the plan includes everything, some don’t cover collection from non-mortuary facilities or ashes return. Make sure the provider is authorised by the FCA, ask how your money is protected, and find out if you can make changes or cancel if needed.
Yes. Many providers let you choose music, readings, or even request no ceremony at all. Aura’s direct cremation plan, for example, allows music selection and lets your family know when the cremation takes place, even if it’s unattended. It’s about making sure things are done your way.
Aura holds the funds needed for your funeral in a secure, independently managed trust. This means that in the unlikely event that something were to go wrong with the business, arrangements are in place to help protect your funeral plan. Your plan may be transferred to another regulated provider, or you may be eligible to receive compensation through the Financial Services Compensation Scheme (FSCS), subject to its rules.