How to Choose the Best Final Expense Insurance in the UK

Funeral insurance and prepaid funeral plans are ways in which one can plan ahead to cover the costs of a funeral to ease this burden from falling onto one’s family members after their death. These are two different methods to pay for part of a funeral in advance. If you are considering taking out one of these options, it’s important that you know the differences between the two and understand how each of these methods works.

What is funeral insurance?

Commonly referred to as “over 50s plans” in the UK, funeral insurance policies are options for a type of insurance that covers part of a funeral. As most insurance agreements work, once the money is paid into the policy — you cannot get it back unless your time has come. What’s appealing about these policies is that there are no medical requirements, so no matter what your health condition is, the payout is the same. However, there are some drawbacks to securing funeral insurance policies, including:

  • Some of these plans do not keep up with inflation and therefore could leave you with premiums to payout.
  • Life insurance plans tend to offer higher payouts (up to 40 percent more according to Which) than funeral insurance policies.
  • Typically, you must survive at least two full years after taking out a funeral insurance policy in order to get the full payout.
  • If you default on payments, depending on the type of insurance policy you carry, there is a chance that you could lose out on all the money you’ve ever paid in.

What is a pre-paid funeral plan?

When it comes to a standard pre-paid funeral plan, you basically pay for your funeral in advance at today’s prices. There are two ways these payments may take place, either as a lump sum paid one time or as instalments that are paid to the plan provider or funeral director. Many of these plans will cover the cost of cremation in full, but only partially cover burial costs. A church service is typically not included in pre-paid funeral plans.

The money that you pay into a pre-paid funeral plan is either invested into a trust fund with trustees or invested in an insurance policy, which is then used to pay for the funeral when the time comes. Either method is there in order to safeguard your money until it is needed, which ensures that the amount is used to provide the funeral or cremation that you have paid for.

What are the benefits of pre-paid funeral plans?

In order to get a very professional opinion of the benefits of using pre-paid funeral plans, we reached out to experts in the industry to get their insights on this topic.

Pure Cremation is a company in the UK that offers funeral plans which are 100 percent guaranteed. The team at Pure Cremation has more than 30 years of experience working alongside the bereaved and the people that matter to them. Bryan and Catherine Powell conducted their first Pure Cremation in 2012, and since then, the demand had grown so much that by 2015, they decided to only work with this style of funeral.

Designed as a modern alternative to a traditional cremation funeral, direct cremation separates the personal farewell from the cremation itself. Two different options for prepaid funeral plans are offered by Pure Cremation. Both of these plans are designed to cover everything you will need for an unattended direct cremation. Included in the costs are:

  • Doctors’ fees as applicable
  • Cremation fees
  • Solid pine eco-coffin
  • Collection and transfer in the company’s specialised vehicles
  • Hand delivery of the ashes

A Pure Promise is offered by Pure Cremation, which is a 100 percent guarantee on both their prepaid funeral plans. Both options do not require you to answer any medical questions and your acceptance is guaranteed. Here are their two options for prepaid funeral plans:

  • Trust Based Plan
    • Anyone aged 18 and over
    • Single payment or instalments available
    • Flexible payment options to suit your needs
  • Over 50s Plan
    • Anyone aged 50-75
    • Low monthly premium
    • No medical questions

Catherine Powell, who founded Pure Cremation along with her husband, was kind enough to fill us in on the top three reasons why someone would choose a Pure Cremation prepaid plan, and they are:

  1. They can leave clear instructions to family about non-traditional wishes helps to eliminate doubt.
  2. The person who takes out the plan can feel in control while protecting their family from the hassle.
  3. Peace of mind is achieved by arranging the essentials (the cremation itself) and fixing the price forever (their plans are fully guaranteed).

Another leading cremation provider in the UK, Simplicity Cremations, offers pre-paid funeral plans meant to safeguard your loved ones financially after your death. You can make sure that your funeral is paid for and that your wishes are made known with prepaid funeral plans that start from £1,495. All the plans from Simplicity Cremations include 24/7 collection, care in their quality facilities, cremation at their own modern crematorium, cremation fees, provision of a simple coffin, and transportation in specialised vehicles for the delivery of ashes. Last but not least, collection and care are available day and night!

Marie Portlock, Team Coordinator at the Client Service Centre for Simplicity Cremations, offered her expert insight on the three main benefits to taking out a funeral plan, which are:

  1. Being able to plan a funeral in advance.
  2. The ability to freeze today’s prices for the future.
  3. You’re able to relieve the burden off the family at the time as all has been taken care of.

If you are living in the UK and have not taken out a prepaid funeral insurance plan, you should consider these two professional organizations and experience these benefits for yourself.