A direct cremation plan is a prepaid arrangement that covers the majority of costs of a direct cremation. This usually includes collection of the deceased, professional care, a coffin and the cremation itself. You pay a fixed price today, protecting your family from rising funeral costs. With our Direct Cremation Plan all costs are included, including return of the ashes, however this is not always the case with other providers, so it’s important to check exactly what the plan covers.
The average direct cremation now costs £1,628*. A prepaid plan locks in a price today, so your family is protected from future increases.
Not sure what a direct cremation is? Read our guide to what is a direct cremation before reading on.
How does a direct cremation plan work?
With a direct cremation plan, you choose the provider, take the time to understand what is included and then pay the upfront price.
When the time comes, your family, or the person you have chosen to act on your behalf makes a phone call to the provider, and the cremation is carried out according to the plan.
The money you pay for the plan can be used to purchase a whole life insurance policy in your name, or it can be placed into a secure trust. This means the funds are ring-fenced for you and cannot be used for anything else. The plan provider is named as the beneficiary and will use the funds to carry out your cremation when the time comes.
Your money is protected by the Financial Services Compensation Scheme (FSCS), which means it is secure even if the insurance company were to go out of business.
What is included in a direct cremation plan?
A direct cremation plan is designed to cover the main costs of the cremation. This usually includes the cremation fee itself, as well as funeral director services such as collecting and caring for the deceased, supporting the family, and making the necessary arrangements.
If you are not sure what a direct cremation involves, our guide to what happens at a direct cremation walks through the full process from collection to the return of ashes.
Why buy a prepaid direct cremation plan?
There are several practical reasons people choose to buy a direct cremation plan in advance.
Protection against rising costs
The SunLife Cost of Dying Report 2026 recorded a 1.9% increase in the cost of a direct cremation since 2024. A prepaid plan fixes the price at the point of purchase.
Helps reduce costs for your family
When the plan is needed, the main costs of the cremation should already be covered. This usually includes collection of the deceased, a coffin, and the cremation itself.
Some smaller or optional costs may not be included, such as return of ashes, out-of-hours collection, additional mileage, or a larger coffin, so it is important to check exactly what the plan covers.
Reducing the burden on loved ones
Arranging a funeral while grieving is difficult. A prepaid plan means the key decisions have already been made. Your family knows what you wanted, and the provider handles the arrangements. A phone call to the provider will set the plan in motion.
Keeping things simple
A direct cremation is already the simplest type of funeral. Adding a prepaid plan means your family does not need to compare funeral directors, negotiate prices, or worry about hidden costs. Everything is agreed in advance.
Peace of mind
Knowing that your cremation is arranged and paid for can be a genuine relief. You do not need to worry about leaving your family with an unexpected bill, and you can be confident that your wishes will be followed.
Learn more about whether a direct cremation plan could be right for you.
What is a nominated representative?
When you take out a direct cremation plan, you are usually asked to name a nominated representative. This is the person who will contact your plan provider when the time comes to use the plan. It is often a spouse, partner, son, or daughter, but it can be anyone you trust.
Your nominated representative would usually receive details of the plan and will be the plan providers point of contact.
What happens when the plan is needed?
When the person covered by the plan dies, the process is more straightforward. A family member or the nominated representative contacts the plan provider, and the provider takes it from there.
In most cases, the steps are:
- Someone contacts the provider. This can be the nominated representative, a family member, or a friend. Most providers have a 24-hour phone line for this.
- The provider arranges collection. The deceased is collected from wherever they are, whether that is a hospital, care home, hospice, or their own home. Collection arrangements vary between providers, so it is important to check what is included. Some plans may charge extra for collection from a residential address, out-of-hours collection, or collection outside a set mileage area.
- The deceased is cared for in a professional mortuary and prepared for cremation.
- The cremation takes place at a crematorium chosen by the provider. With a direct cremation, there is no service, so no one needs to attend.
- The ashes are returned to the family, either by hand delivery or by post depending on the provider.
Your family does not need to find a funeral director or compare prices. The plan covers everything that was agreed at the point of purchase, regardless of how much costs have risen since then.
For a more detailed comparison, see our guide to how direct cremation plans compare.
How to choose a direct cremation plan
Not all direct cremation plans are the same. Before buying, it is worth checking a few things:
- Is the plan fully inclusive? Some providers charge extra for collection from certain locations, larger coffin sizes, the return of ashes or the removal of pacemakers. Check whether the price you are quoted covers everything.
- What are the cancellation terms? You should have a cooling-off period of at least 30 days. After that, check whether there is a cancellation fee and how much of your money you would get back.
- What do independent ratings say? Fairer Finance provides independent ratings based on customer experience, transparency, and complaints. A higher star rating means a better track record. MoneySavingExpert offers consumer guidance on what to check before buying a prepaid funeral or cremation plan.
Can you cancel a direct cremation plan?
All FCA-regulated plans come with a 30-day cooling-off period during which you can cancel for a full refund.
After that, it depends which type of plan you have chosen: for one-off payments cancelled after the cooling off period, a cancellation fee applies. Across the market, these range from around £95 to £350.
For direct cremation plans taken over a long term, customers may not be entitled to a refund once the moratorium period has lapsed. It’s worth checking with your provider when purchasing your plan so you are fully informed.
With Memoria Direct Cremation, the cancellation fee is £95.
Direct cremation plan vs funeral insurance
A direct cremation plan and a funeral insurance policy (sometimes called an over-50s life insurance plan) are often confused, but it’s important to know that they work differently.| Direct cremation plan | Funeral insurance (over-50s) | |
|---|---|---|
| What it covers | A direct cremation, fully arranged. | A cash payout to your family. |
| Price guarantee | Yes. The cremation cost is fixed. | No. The payout may not cover rising funeral costs. |
| Medical questions | None. If you are receiving end of life care, or have a terminal illness, it might be more cost-effective to purchase a funeral at the time of need though. | There may be health questions or a waiting period (often 12-24 months) before the full amount is released. |
| Monthly payments | Plans can be paid for in a single lump sum, but payments can also be spread over a fixed term. | Yes. Monthly premiums for life. |
| Total cost over time | Fixed at the point of purchase. | Can exceed the payout if you live for many years. |
| What your family receives | An arranged direct cremation. | A cash sum. They still need to arrange the funeral. |
For most people who want a direct cremation, a prepaid plan is more straightforward than funeral insurance. The cremation is arranged, the price is fixed, and your family does not need to make any decisions or shop around for a funeral director.
Ready to find out more?
If you’d like to understand your options or get a clear, no-obligation quote, Memoria Direct Cremation’s friendly and knowledgeable team are here to help.
Speak to the Memoria Direct Cremation team about direct cremation - call free on 0800 007 3921.
Last reviewed: July 2026.
*Industry statistics sourced from the SunLife Cost of Dying Report 2026.
