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Written by Betty Gardiner.
21 minute read
Thinking about a future where you’re not here isn’t always easy, but planning ahead can make a big difference for your loved ones. In this guide, we’ll explore what a funeral plan is and how a funeral plan works, showing how these thoughtful arrangements can ease financial burdens and help you create a farewell that reflects your wishes. By understanding these key details, you can decide if a prepaid funeral plan is right for you, offering peace of mind and helping ensure your final wishes are respected when the time comes.
Key takeaways:
A prepaid funeral plan, also known as a funeral care plan, allows you to arrange and pay for your funeral in advance, relieving your family from the financial and emotional difficulties that come with funeral planning. It is a thoughtful way of planning ahead, offering peace of mind for both you and your loved ones.
The main purpose of a funeral plan is to organise who your family can turn to after you have passed. You can arrange a plan with many different companies, from your local funeral director to national providers. They will hold your funds safely until the time of the funeral and then handle your care and your funeral details when the time comes.
A funeral plan allows you to pay for your funeral in advance, protecting against rising costs. Many plans lock in today’s prices, so your loved ones won’t be affected by future increases in funeral expenses. This guarantee of fixed costs is one of the main reasons people choose to plan ahead.
At Aura, every essential cost is included in our plans, with no hidden fees or unexpected charges. You pay only what’s agreed upfront, giving you and your family peace of mind that there’s nothing more to pay later.
Once your plan is in place, the funeral director handles the logistics, such as transportation and arrangements, so your loved ones aren’t left with difficult decisions during an emotional time.
Your money is also kept safe. Reputable providers like Aura place your payments into a secure, independent trust or insurance policy. This fund is separate from the company’s operations, meaning your money remains protected even if the provider faces financial issues. When the time comes, the funds are released to cover the services outlined in your plan.
There are many reasons why you may want to plan your own funeral. Some choose prepaid funeral plans to take control of their end-of-life arrangements, ensuring that their wishes are respected. Whether you want a traditional service, a direct cremation, or a celebration of life, a prepaid funeral plan means that you can set out details in advance.
Additionally, many financial benefits may impact someone’s decision to get a prepaid funeral plan as funeral expenses seem to be on the rise. Data in the SunLife Cost of Dying Report suggests that the current average funeral cost is £4,285, which has increased from the data in the previous year’s report. A study from Legal & General also supports this rising trend in funeral expenses, suggesting that average costs could reach as high as £6,259 by 2033.
By purchasing a funeral plan at today’s prices, you protect yourself from these potential future price increases. This can save your family significant financial strain when the time comes, as all or most of the costs will have been taken care of.
Funeral plans can vary in terms of what is included, but they typically cover key aspects of a person’s care and funeral needs. This may include the funeral director’s services, transport of the person who has passed to the funeral home, a simple coffin and cremation or burial costs.
Some plans also cover third-party costs, known as disbursements, which may include fees for the services of a minister or celebrant, a hearse or limousines, and the cost of the chapel or venue for the ceremony. However, not all funeral plans include these costs in full, so it’s important to check whether the plan covers them or only contributes a fixed amount towards them.
As every funeral plan will offer different coverage, it’s difficult to say exactly what you can expect from each provider. However, here at Aura, we offer all-inclusive funeral plans for direct cremations. This means that all necessary services relating to your funeral with us are completely covered, ensuring peace of mind that there’s nothing more to pay later.
Included in our unattended direct cremation plans:
If you would like your loved ones present at your cremation, we offer the option to add an intimate ceremony with our two attended direct cremation plans which include:
Different providers may offer several payment options when you purchase your funeral plan. Some plan holders prefer to settle their payments upfront in one lump sum, whereas others would rather pay in funeral instalments as monthly payments spread out the costs over time, making it easier to budget. You can choose the payment term that works best for you, often ranging from 12 months to several years, depending on your provider.
While spreading payments can make the cost of a funeral more affordable, it is essential to check for any additional charges. Some providers may add administration fees or interest to instalments, which can significantly increase the overall cost. Before committing to a plan, you may want to compare the total amount payable over the instalment period across different providers.
You can usually pay for a funeral plan in one of two ways:
Aura offers interest-free instalments over 12 to 24 months. Some providers allow you to spread payments over longer periods – sometimes up to 25 years – but this often includes added interest or fees.
It’s important to understand the risks. With many plans, if you miss payments or stop paying early, your plan may be cancelled or not fully guaranteed. Some providers offer protection if you die before finishing your payments, but others don’t – so always check.
Not all funeral plans are the same. Some key guarantees to look out for include:
Aura guarantees no hidden fees and will still provide the agreed services if you pass away during a qualifying payment term.
Funeral plans in the UK are regulated by the Financial Conduct Authority (FCA). This means providers must meet strict rules to protect your money and treat you fairly.
Your payments are held in a protected trust or insurance policy, and if your provider goes out of business, the Financial Services Compensation Scheme (FSCS) may arrange for another provider to take over your plan – or refund your money.
Most providers offer a 30-day cooling-off period where you can cancel for a full refund. At Aura, you can cancel your plan at any time with no cancellation fee.
Here are some of the most common reasons people choose a prepaid funeral plan:
There are several types of funeral plans available, each catering to different needs and preferences. Understanding these options can help you choose the best one for you or your family.
Standard funeral plans typically cover the costs of services such as transportation of the body, care and preparation, the funeral service itself, and often burial or cremation fees. These plans are designed for those who want a traditional service with the full range of elements, from a coffin and hearse to a ceremony, and possibly even a wake. They’re perfect for people who want a structured and familiar funeral format, usually following religious or cultural customs.
Some people prefer to have full control over every aspect of their funeral arrangements, and bespoke plans allow for this level of personalisation. You can specify the details and set aside certain amounts of money for special vehicles, flowers, venues, and more. Bespoke plans are ideal for those who want to create a unique and customised farewell that reflects their personality or specific wishes. This option may appeal to those who want to move away from traditional formats or incorporate meaningful elements that are important to them.
For those looking for simplicity, direct cremation is a popular choice. It involves the body being cremated without a formal service or attendees at the crematorium. Direct cremation costs are more affordable than traditional funerals, as they eliminate the costs associated with a ceremony. This allows families to hold their own memorial or celebration of life at a time and place of their choosing, offering flexibility and often reflecting a more modern approach to honouring a loved one.
While prepaid funeral plans can be a convenient way to manage end-of-life expenses, they are not the only option available. Some alternatives include:
Many people who ask, ‘how much does a funeral cost?’ decide to take out over 50s life insurance, as it provides a guaranteed lump sum when they die. This money can be used to cover funeral costs or other expenses, offering flexibility for your family. However, you may want to compare the costs of funeral plans to over 50s life insurance as you may end up paying more in monthly premiums than your beneficiaries receive when you pass, and that might not cover all of your funeral costs.
Setting aside money in a designated savings account can help cover funeral expenses. However, this does not shield your loved ones from the difficult logistical issues that come with funeral planning and may cause delays if probate is needed to access your funds.
Funeral costs can be settled from your estate after you pass away. However, your estate may be subject to inheritance tax, unlike prepaid funeral plans, and so may not be as cost-efficient.
Every person’s situation and circumstances are unique and may need different approaches. It’s essential to weigh each option carefully before deciding the best way to cover your funeral expenses.
Most funeral plans can be taken out by individuals over the age of 18. However, some funeral plans may have age restrictions, often requiring individuals to be over 50 to qualify. Additionally, in order to spread the cost of a plan over a longer period (e.g. 10 or 20 years), you may need to be under a specific age which is usually around 80.
If you are older and considering a funeral plan, you may need to opt for a shorter payment period or pay in full upfront. It’s essential to check the terms and conditions of each plan to ensure that it aligns with your age and financial situation.
One of the key concerns when purchasing a funeral plan is knowing that your money is secure and available when needed. Thanks to welcome changes in the industry brought about by the Financial Conduct Authority (FCA) in 2022, customers now have better consumer protection.
It is illegal to sell funeral plans without FCA-authorisation which comes with a strict set of regulations that protect you. Plan providers are now required to set aside the money needed for your funeral in an independently managed trust or an insurance policy. This keeps your money protected and separate from the company’s day-to-day operations.
Additionally, the Financial Services Compensation Scheme (FSCS) offers a safety net in case the plan provider fails. If your provider goes out of business, the FSCS ensures that your funeral plan will still be honoured by transferring you to an alternative provider and you may also be entitled to compensation.
You can feel confident that your funeral plan is safe by checking that the provider is FCA-authorised and that their trust or insurance policy is well-managed.
Choosing a funeral plan is an important decision, so it’s recommended that you take your time to find the right one for you. You may want to research various providers, discuss options with your family and consider factors such as budget, personal needs, and the type of funeral you want. By weighing all aspects carefully, including the funeral plan cost, you can gain peace of mind in knowing that you have the right plan for you.
In your search to find the right funeral plan for you, you may come across a few different companies offering slightly different options. With so many choices on the market, it’s important to compare funeral plan providers to find something that suits your needs. Here are some key aspects you may want to investigate, when looking at recommended funeral plans.
Pricing is often one of the first factors to consider, and it’s essential to understand what’s covered in a plan. Some companies provide comprehensive coverage, while others may have additional costs for certain services. Be cautious of hidden fees, which could leave your family with unexpected expenses later. Aura’s plans, for example, provide straightforward, inclusive pricing to offer clarity and peace of mind, so your loved ones aren’t burdened with extra charges.
Not all funeral plans are all-inclusive like ours at Aura. They may charge extra fees for the delivery of ashes or removal of medical implants. When evaluating plans, confirm what’s included to avoid unforeseen costs.
While no one expects it, life circumstances can change. Whether it’s your preferences over your funeral or you need to cancel completely, look into what kind of adjustments your funeral provider allows you to make and whether or not they come with extra fees. Aura, for instance, makes life easy with free changes and cancellations at any time, ensuring your plan always reflects your wishes. Other providers, however, can sometimes charge up to £350 if your circumstances change and you need to cancel your plan.
The quality of customer care can be invaluable when arranging end-of-life plans. Providers with a compassionate, attentive team can make the entire process smoother and more supportive for you and your family. Smaller, family-run companies like Aura can offer a human touch that ensures your family will receive a supportive and respectful experience when it comes to planning your funeral.
A provider’s track record speaks volumes. Independent reviews on sites like Trustpilot or Fairer Finance can give you insight into customer satisfaction and reliability. Additionally, websites like Money Saving Expert are a great resource for comparing funeral plans, as they provide impartial advice.
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| Starting Price | £1,695 | £2,095 | £1,700 | £1,885 |
| Fairer Finance | ||||
| Trustpilot | 4.9/5 stars | 4.8/5 stars | 4.6/5 stars | 4.4/5 stars |
| All-Inclusive Pricingℹ | ||||
| Free Cancellation Anytimeℹ | ||||
| Money-Back Guaranteeℹ | ||||
| Aura Angel Support for Familiesℹ |
When you choose Aura, you’re choosing a team that genuinely cares. We’re not a big corporation but a family-run business with compassionate values that shape everything we do. Aura was founded by Paul Jameson, inspired by his own journey with end-of-life planning, so we know firsthand how comforting it can be to have a comprehensive plan in place for you and your family.
Our all-inclusive plans have no hidden fees to ensure your loved ones won’t face any surprises. We also understand that financial security is essential. That’s why we keep your funds safe in an independently managed trust. We are also authorised by the FCA, giving you full confidence in your choice.
Aura is proud to have earned recognition not only from our customers but also from respected industry organisations. We have earned a 4.9/5 stars rating on Trustpilot and two five-star ratings from Fairer Finance. Additionally, our commitment to responsible business practices earned us ‘SME Compliance Team of the Year’ award from the International Compliance Association (ICA) in 2024, highlighting the high standards we have in every aspect of our work.
Families can choose Aura with confidence, knowing they’re partnering with a team that truly values their needs and will be there with understanding and support when they need it most.
If you’d like more information or want help arranging a plan with us at Aura, our friendly team is here to support you—just give us a call and we can answer any questions you may have.
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.
Many people choose prepaid funeral plans to secure today’s prices, ease future costs for their family, and ensure their wishes are followed. A plan can also provide clarity and reassurance, helping to reduce stress at an already difficult time.
Prepaid funeral plans let you arrange and pay for your funeral in advance, giving peace of mind to you and your family. To find the right plan:
Check regulation and protection: Make sure the provider is FCA-regulated and that your money is safeguarded, as Aura’s plans are through the FSCS.
Compare providers: Look at what’s included, cancellation terms, instalment options, and customer reviews.
Know your options: Plans range from simple cremation-only to fully attended services. Aura offers three choices, unattended cremation from £1,695, an intimate option for close family, and a fully attended service.
Ask key questions: Can you pay monthly at no extra cost? What happens if the provider goes out of business? Will you get a refund if you cancel?
Costs vary depending on the type of service, provider, and payment option. Simpler cremation plans tend to be more affordable than traditional burial services.
Choose a plan with clear pricing and no hidden costs. It should be flexible if your needs change, and offer options that reflect your personal or cultural wishes. Some plans are for unattended cremations only, while others include attended services with guests. It also helps to look for a provider with a good reputation and caring support.
It varies by provider. Some charge fees, while others are more flexible. With Aura, you can amend or cancel your plan at any time without fees, and you’ll always receive a full refund.
Aura is a family-run company created to make funeral planning simpler, clearer, and more compassionate. We’re the only UK provider with two 5-star prepaid cremation plans from Fairer Finance, and we’re proud to have some of the highest customer satisfaction ratings in the industry. With the support of our Aura Angels, families are guided with care and respect every step of the way.
Many people ask: does Martin Lewis recommend funeral plans? The answer is — yes, but only in the right circumstances.
Martin Lewis supports prepaid funeral plans if you:
Can pay upfront or over a short, interest-free period
Worry your family may struggle with funeral costs or arrangements
Want to lock in today’s prices to avoid rising funeral costs
However, he warns against:
Long payment plans with high interest
Insurance-style plans that stop if you miss a payment
Paying more overall than the funeral is worth
He also recommends choosing a plan from an FCA-authorised provider and carefully checking what’s included. At Aura, our plans are clear, affordable, and fully flexible, with no hidden fees and no cancellation charge — so you can plan with confidence.