Do what you want

According to research from The University of Bath, the cost of a basic funeral is around £3,500. And that doesn't include associated administration fees.

With this cost rising faster than inflation, it makes good sense to think about what sort of funeral you want and how you could pay for it.

Your local funeral director will be happy to help you, but here is a summary of the main options.

Leave it to your partner or family members to find the cash:

• The person who arranges the funeral must usually sign a form making them personally responsible for paying for the funeral. Whoever pays will seek to recover the cost from the deceased person's estate.
• If there is not enough money in your estate to cover the cost of the funeral, whoever paid for your funeral will be out of pocket.
• Even if there is money in your estate to cover the cost of a funeral, it may not be possible for your representatives or family to access it.
• This means hassle and stress for your family if they need to apply for Funeral Payment from the Social Fund (www.gov.uk/funeral-payments/overview)
• Your wishes may not be carried out

A funeral plan or bond taken out through a funeral director:

A funeral plan allows you to organise and settle the bill for your own or your partner's funeral. The best ones will guarantee to meet all the costs in full.

Most funeral directors are able to offer a funeral plan where you can pay a lump sum up front, which will be enough to meet the cost of the funeral you want when the time comes.

In most cases you also have the option to spread the cost over a number of months. The money you give to the funeral director should be invested in an independent fund managed by a trust or an insurance company, either by the funeral director itself or through a specialist plan provider.

• Make sure you understand what services and costs are included and be clear on whether there are additional costs your family will have to pick up.
• Make sure the funeral director is a member of the Funeral Planning Authority. (www.funeralplanningautority.com). Members of the Funeral Planning Authority abide by a code of practice which ensures that the money that people pay to a plan provider is safeguarded.
• Check how much you will be charged if you decide to cancel your plan and get your money back.
• Check how much you will be charged if you decide to retire to another part of the UK or even abroad.

The advantages of this are that you can choose a funeral director you trust, design your own unique funeral, and you do not have to worry about rising funeral costs.

A funeral plan direct from a plan provider:

There are several companies that specialise in providing funeral plans or bonds but do not deliver funerals themselves. If you invest in one of these plans, you may be able to nominate your preferred funeral director; but in some cases the company will place your funeral with one of their partners when the time comes.

• Make sure the plan provider is a member of the Funeral Planning Authority.
• You may not know which funeral director will be conducting the funeral.
• The salesperson may not have a detailed knowledge of funerals.

50+ insurance policy:

It is possible to take out an insurance policy to meet some of the cost of your funeral when you die. This is life insurance, not an investment.

• Check whether the policy guarantees to cover the whole cost of the funeral.
• Check which funeral costs the policy guarantees to pay in full and which costs it will contribute to.
• You will not get money back if you cancel
• You need to keep paying the premiums or your cover will stop.
• The policy may not pay out until you have had it a number of years.
• Check how long you have to pay premiums for.
• The premiums you have paid could end up being more than the cost of the funeral.
• You might be able to get a policy that pays out more if you are reasonably healthy and happy to get a health check.

By Nigel Killick, The Midcounties Co-operative