Funeral costs have risen over time, making it more important to understand how they can be covered. The responsibility may fall to different people: the person whose funeral it will be may have made arrangements in advance, or the cost may be paid from their estate after they die. In other circumstances, particularly after an unexpected or sudden death, family or close friends may need to meet the cost.
Here are some of the ways a funeral can be paid for.
A prepaid funeral plan
This includes a protected sum set aside specifically for a funeral accompanied by a specific set of wishes and choices around which the funds were estimated. Prepaid plans guarantee our professional fees and while funds are put aside for third party expenses such as cremation or cemetery fees, celebrants etc, there may be a balance left for those arranging to cover. Planning ahead can give you more control over the choices you make and how the cost will be covered.
Insurance policy
Policies such as critical illness or life insurance can be used for funeral costs and depending on the type of policy, may be released and used for funerals or other expenses as set out by the relevant terms and conditions.
Over 50s savings plans
Simple monthly savings plans can be used to cover the cost of funerals or indeed any other related expenses as they’re not linked to funerals in particular.
Savings and investments
Current or savings accounts or investments can be used to pay for funeral costs. In the event someone has died, certification is required to authorise funds to be released or to organise the transfer of assets to the next of kin/other nominated person.
Further information
According to Sun Life’s Cost of Dying Report (2026), most funerals were covered by the person who’s died. But there were other sources of funding that included:
- Government grants
- Loans
- Funding from other people
Where payment of a funeral cannot be done in a single transaction, it’s possible to arrange instalments or a payment plan. This will vary between each funeral director.
All funeral directors should provide an estimate before the funeral which should clearly set out the costs agreed and payment terms. It’s common to pay a deposit before the funeral to cover third party outlays done on your behalf. Again, this too will vary between funeral directors.
Funeral costs should be available in the form of a CMA standardised price list and we list our prices here. We encourage families to use this for comparison purposes as we often include as standard what other providers treat as extras.