A typical funeral using a funeral director costs around £4,000.
Often you will need to pay the funeral director before probate is granted. In other words, before there is proof that a will is valid. It is worth considering how to pay for a funeral in advance in case there is not enough money to cover the costs.
There are a number of ways in which the cost can be covered. It will help to find out if:
- the deceased contributed to a scheme to pay for the funeral
- there are letters from an employer with details of an occupational or personal pension
- there is a life insurance policy (assurance)
- there is a prepaid funeral plan
Read about the potential costs of a funeral on How much does a funeral cost from the Money Advice Service.
Funeral payments advice
If you are arranging a funeral and you are on a low income, you may be eligible for help through a Funeral Payment.
The applicant must be in receipt of a qualifying means-tested benefit. However, payment may not be awarded if an immediate family member is not receiving a qualifying benefit. Savings over a certain amount will be considered. You will receive a single lump sum payment, which must be claimed within 3 months of the funeral.
More information about this is on GOV.UK - Funeral Payments.
Life assurance policies
Life assurance policies provide a lump sum payment if:
- someone dies before a certain age (known as term assurance or endowment assurance)
- on death at any age (whole life insurance)
This is tax free and can cost as little as £1 per day.
Payment is usually made after probate, but the insurance company may pay out a limited sum on evidence of death.
Payment from the estate of the deceased
The deceased’s bank account will be frozen unless it is a joint account. Building societies and National Savings may release money for payment of funeral expenses. However, they do not have to do this until you get a grant of probate or letters of administration.
Pensions and payments
There may be pensions or lump sums payable from one of the following when a member dies:
- trade union
- professional body or other association
- provident club
Savings accounts and pre-paid funeral plans
Many funeral directors arrange pre-pay policies and some will accept advance payments, which are not part of a funeral plan.
Payment by instalments may be accepted if this is agreed when the funeral is arranged. It would be wise to make sure that your savings are kept separate from the funeral director’s business account.
Pre-paid funeral plans
Funeral directors offer these plans. They enable someone to set aside money solely for funeral costs. However, legislation to safeguard the money paid out has yet to be passed. You should consider carefully the plan offered by your chosen funeral director.
Ask them:
- if you get a funeral director of your choice
- what happens if you die before payments are complete
- if your money is kept in a trust fund separate from the funeral director’s accounts
- what happens if your family is not aware of the plan and make an independent funeral arrangement
- what extra costs, if any, are not covered
- what happens if you die abroad
Read about funeral plans on Funeral plans and funeral insurance from the Money Advice Service.
The Children’s Fund
From 23 July 2019, the parents of children who have died will no longer have to pay for their funerals (burials or cremations). Every local authority in England will waive fees and the bill for the child’s final rites will be met by the government. The Children’s Fund applies to those under 18 or stillborn after the 24th week of pregnancy.
More information is available about the support available for children's funerals on GOV.UK.