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What Are the Pitfalls of Funeral Plans?

Prepaid funeral plans come with several advantages, the most critical being the ability to personalise your funeral and avoid the rising inflation plaguing its costs. However, they also come short in some aspects, which need to be illuminated. So let’s take a closer look at the pitfalls of funeral plans.

What Are the Disadvantages of Prepaid Funeral Plans?

Let’s see what you need to consider while opting for a prepaid funeral plan.


Paying a large lump sum or committing to pay in instalments may significantly reduce your available savings or income. Additionally, if you spread the payment over 12 months, interest will become a concern, too, so you may end up paying more.


Some funeral homes can be very strict with the services they provide. Once you decide on a specific plan, it might be difficult to alter it if you change your mind, as the money you spend reflects the services you’ll get. As such, you might have to pay more to make changes, depending on your funeral home.

Additionally, once you’ve paid for a plan, you’re locked to the funeral provider. This disadvantage also raises another concern; your funeral plan won’t cover you if you go abroad, and you won’t be refunded in case you move somewhere else.


While plans cover the director’s fees, some services might not be fully paid for in your funeral plan. Moreover, there could be some hidden charges you’re not made aware of.

For example, burial plots are bought separately. In addition, some funeral providers contribute to cremation services, but they don’t fully finance them.

So as not to make your family responsible for paying what’s outstanding, carefully review your contract and what you’re getting with your plan. If you’re looking for affordable funerals, it’s especially important to understand what is included in your funeral plan and what additional costs may arise.


Backing up your plan with insurance is a clever way to make sure your family won’t be responsible for paying the remaining instalments if you die before you fully finance your plan. But, of course, insurance will cost extra.


As with every investment, prepaying your funeral carries a few risks. However, you can mitigate them through careful analysis and review of your contract, the funeral home, and the services you’re paying for. Make sure you find a transparent home that you’re comfortable with!