Funeral Planning for Expats

Expat funeral plans are a great way to escape the rising prices of funerals and protect your family from stress. Here’s everything you need to know.

If you think that planning for your own funeral sounds depressing, you’re absolutely right. Death is the glum elephant in the room that everybody would prefer to ignore. However, thinking about funeral costs is a very sensible thing to do, and you’ll be rescuing your loved ones from a world of future stress. It’s time to acknowledge the elephant! Go on, it’ll be your final parting gift.

If you’re an expat living in Spain, Canary Islands or Cyprus, click here to receive your personalised funeral planning quote.

Dying isn’t cheap

The average cost of a funeral is high and rising. In 2018, a SunLife report found that a basic funeral in the UK will set you back around £4,271, which represents a whopping 112% increase over the past 14 years. This is forecast to reach over £7,500 in 2028 and almost £13,500 by 2038. Crikey.

What is a funeral plan and how does it work?

Pre-paid funeral plans are handy because they allow you to pay for your funeral at today’s prices. It’s an ice-cold price-freeze. The word is clearly spreading; according to the Funeral Planning Authority (FPA), there were 207,700 funeral plans sold in the UK in 2017, up by 54% across the past five years. Funeral planning is a morbid bandwagon that you’re more than welcome to jump on. All aboard!

Most funeral plan providers will give you the choice between paying a one-off lump sum or breaking it up into monthly instalments, which can last anywhere between one and 30 years. There’s normally no disadvantage to paying in 12 monthly instalments, but if you need longer than one year then the total cost tends to increase by 10-15%.

In most cases, your money will either be placed in a trust fund (with trustees) or invested in an insurance policy. After that, it won’t be touched until your clogs have finally popped.

What’s included in a funeral plan?

Most funeral plans don’t usually cover everything that’s required for a proper send-off. They will guarantee things like a coffin & hearse, care of the body, and a minister for the ceremony, but extras such as flowers, newspaper obituaries, and catering are not typically included. Some things will just have to be paid for once they’re actually needed.

Contributions to burial and cremation costs can also range widely across providers, so it’s important to check exactly what you’re paying for. For example, some plans will exclude burial plots and headstones, which can end up costing several thousands of pounds. Generally speaking, cremations are significantly cheaper than burials and are much more likely to be fully covered by your funeral plan.

It’s always better to choose a plan that will pay for specific things, rather than one that just makes a fixed monetary contribution. Why? Well, as the cost of a funeral continues to increase, this fixed contribution will not grow with the rising prices, and so it will steadily lose its value.

What is an expat funeral plan?

An expat funeral plan is mostly the same as above, except you need to choose between two things; whether you have your funeral in your country of death or back in the UK. Providers create plans for both scenarios, so it’s not mandatory that your body is repatriated to the UK. Most importantly, dying abroad often comes with lots of legal formalities, and your provider will help your loved ones deal with them.

How much does a funeral plan cost?

The average cost of a funeral plan generally ranges between £2,750 and £4,000, depending on how much you want your plan to include. If you choose to break up the cost into monthly instalments, these can be as low as £15-20 per month.

Cancelling a funeral plan before the full payment is made will incur a fee of around £250.

Benefits of a funeral plan

So what makes a funeral plan worth having? Here are three big reasons to get one.

You save money. By paying for your funeral at today’s prices, you no longer have to worry about the skyrocketing costs. You can sit back and watch as other people panic frantically, knowing that you’re sorted.

You protect people from stress. With a funeral plan in place, your loved ones will have one less thing to worry about. You don’t want to leave behind a whole load of logistical headaches and a long funeral bill.

It’s tax free. That’s right: once your plan is fully paid for, it won’t be counted as part of your estate. This means it’ll avoid being subject to inheritance tax after your death. Kerching!

Things to consider

It’s important that you know exactly what you’re getting when you buy a funeral plan, as the details will vary from provider to provider. Here are some things you should be asking before you start parting with your cash.

What exactly does the plan include?

What potential costs are excluded from the plan?

Who chooses the funeral director?

Will it be possible to change any details or upgrade the plan at a later date?

What is the cancellation fee?

Are you registered with the Funeral Planning Authority?

FAQs

The world of funeral plans throws up a lot of queries. We’ve answered three of the most common.

Can I put two names on a funeral plan?

It depends on the provider. Some of them will let you put two names on a plan, but it can be used only once.

What happens if I die before the funeral plan has been paid off?

Your loved ones will be faced with two options: finish paying for the plan or cancel it and get a refund (minus the cancellation fee, which is usually around £250).

Is my money safe in a funeral plan?

Your provider will either place your money in a trust fund or invest it in an insurance policy, which means it’s subject to rules imposed by the Financial Conduct Authority (FCA). What’s more, most providers are registered with the Funeral Planning Authority (FPA), which has a strict code of conduct.

By now, you’re probably thinking that expat funeral plans sound like a very sensible idea. If you’re an expat living in Spain, the Canary Islands or Cyprus, head here to get your personalised funeral planning quote.