A direct cremation plan fixes the cost of your cremation at today's price. Over-50s life insurance pays out a fixed cash sum that may not keep pace with rising costs. Savings stay flexible but offer no price protection. The right choice depends on your age, health, and budget.
If you’ve started thinking about how to cover the cost of your own funeral, you’ve probably noticed how quickly it gets confusing. One advert tells you to take out a funeral plan. Another promises life insurance from pennies a day. A friend says just put the money in a savings account and be done with it. All three sound sensible, and it’s hard to know what to do when every option is being sold to you.
This guide walks you through how each option works for covering the cost of a direct cremation. By the end, you should have a much clearer idea of which approach best fits your circumstances.
Key Takeaways
- A direct cremation plan locks in today’s price for the services included in the plan, however long it is until it’s needed. The average plan, according to the UK Funeral Plan Market Report 2026, from a national provider costs £1,736.
- Over-50s life insurance pays a fixed cash sum, which may not cover a direct cremation. If costs rise faster than expected, the payout may not cover everything, and if you live a long time, you can pay more in premiums than the policy pays out.
- If you stop paying an over-50s policy, you usually lose everything you’ve paid in. A direct cremation plan has clearer protections: with Memoria Direct Cremation, you can cancel for a full refund within two years of starting instalments, or for a £95 fee after that.
- Savings stay yours and stay flexible, but they don’t protect you against rising prices, and your family still has to arrange everything when the time comes.
- A direct cremation plan is not a life insurance policy. You’re paying in advance for a defined funeral package, not buying cover that pays out cash.
- Funeral plans overtook over-50s life insurance sales for the first time in 2025, with 206,837 funeral plans sold against around 192,000 over-50s insurance policies*.
- Your money is protected when you buy a direct cremation plan from a provider that’s regulated by the Financial Conduct Authority (FCA). Memoria Funeral Plans Limited are authorised and regulated by the Financial Conduct Authority (FCA), and all our plans are covered by the Financial Services Compensation Scheme (FSCS).
Your three main options at a glance
If you want to spare your family the cost and stress of arranging your cremation, there are three common ways to do it:
- A prepaid direct cremation plan. You choose a provider and pay for your cremation in advance, either in one payment or in instalments. When the time comes, your family makes one phone call and everything covered in the plan is carried out with nothing more to pay for the included services.
- Over-50s life insurance. You pay a monthly premium for the rest of your life (or until a set age), and when you die the policy pays a fixed cash sum to your estate or family, which they can put towards a direct cremation or anything else.
- Saving the money yourself. You set money aside in a savings account, ISA, or elsewhere, and your family uses it to pay for the cremation when it’s needed.
Each option answers a slightly different worry. A plan answers ‘I want it all sorted so nobody has to think about it.’ Insurance answers ‘I want to leave some money behind.’ Savings answer ‘I want to stay in control of my money.’ The trouble is that most of us want a bit of all three, so it helps to look at how each works in practice.
How does a direct cremation plan work?
A direct cremation plan is a way to choose and pay for a simple, unattended cremation at today’s price. Your plan covers the services your provider has agreed to deliver, this is usually: collection of the person who has passed away, care before the cremation, a coffin, the cremation itself, and return of the ashes. Because there’s no funeral service to pay for, it’s the most affordable way to fix the cost of a cremation in advance.
For a fuller picture of what a direct cremation plan involves, see our guide to direct cremation plans.
The key benefit is price certainty. Once the plan is paid for, the included services are covered no matter how much prices rise between now and when the plan is needed. That matters more than it might seem: the average direct cremation plan from a national provider rose 2.7% in the past year alone to £1,736*.
A plan buys simplicity for your family. They won’t need to compare providers, make decisions, or find money while they’re grieving. One phone call puts everything in motion, and your wishes are already on record.
The limitations are worth knowing too. A plan covers the services listed in it and nothing else, so if your family wants to hold a memorial afterwards, that’s not part of the prepaid plan, so it must be paid for separately. There are also cancellation fees if you change your mind later, and if you pay by instalments there are age limits: with Memoria Direct Cremation, for example, monthly payments over five years are available if you’re aged 40 to 79.
If a plan sounds like the right fit, the Memoria Direct Cremation Plan costs £1,595 and covers everything needed for the cremation, with nothing more for your family to pay for the services it includes. Or, call us free on 0800 007 3921 to talk it through, with no pressure or obligation to buy.
What does over-50s life insurance cover?
Over-50s life insurance is a whole-of-life policy with guaranteed acceptance, usually for anyone aged 50 to 80. There’s no medical, your premiums are fixed, and when you die the policy pays a fixed cash sum. Many people take one out with a funeral in mind, which is why the adverts so often mention funeral costs.
It has real strengths. Acceptance is guaranteed regardless of health, the monthly cost is small and predictable, and the payout is cash, which your family can use however they need: the cremation, a memorial, outstanding bills, or anything else. If you die relatively soon after the waiting period, the payout can be worth far more than you paid in.
But there are three things to consider, and they matter if a direct cremation is the main reason you’re buying:
- The payout is fixed, but cremation costs aren’t. A sum that comfortably covers a cremation today may fall short in 20 years. Unlike a pre-paid direct cremation plan, nothing is price-protected.
- You can pay in more than the policy pays out. Premiums usually continue for life or until a set age. If you live a long time, the total paid can exceed the cash sum, sometimes by a wide margin. Most policies have no cash-in value, so you can’t get anything back.
- If you stop paying, you usually lose everything. Miss your monthly payments and the policy typically lapses with nothing returned, even after years of paying.
There’s also a practical point that’s easy to miss: an insurance payout delivers money, not a pre-arranged cremation. Someone still has to compare providers, make the arrangements, and handle the paperwork, usually within days of losing you. For some families that’s fine. For others, it’s exactly the burden they were hoping to avoid.
What about simply saving the money?
Saving for your own funeral is the most flexible option, and for some people it’s the right one. The money stays yours, it can earn interest, and if your circumstances change you can use it for something else entirely. There are no premiums to keep up, no cancellation fees, and no terms and conditions.
Again, there are some trade-offs:
- Your savings aren’t protected against rising costs, so the amount that covers a cremation today may not be enough when it’s needed.
- It takes discipline to build the pot and leave it untouched, especially when money is tight.
- Your family still has to make the arrangements. This includes choosing a provider, making the calls, and making decisions on your behalf, perhaps without knowing what you would have wanted.
One common worry is whether the money will even be accessible in time. In practice, most banks will release funds from your account to pay a funeral bill directly when shown the death certificate and the invoice, even before probate. But this isn’t guaranteed, policies differ between banks, and it adds one more admin task to manage.
If you do choose to save, it helps enormously to write your wishes down and tell your family where the money is and what it’s for. If nobody knows about it, it won’t help.
Comparing the three options side by side
| Direct cremation plan | Over-50s life insurance | Savings | |
|---|---|---|---|
| What you get | A cremation, arranged and carried out by the provider | A fixed cash sum paid on death | Whatever you’ve saved, plus interest |
| Protected against rising costs? | Yes, for the included services | No, the payout is fixed | No |
| Who arranges the funeral? | The plan provider | Your family | Your family |
| If you live a long time | Price stays fixed, nothing more to pay | Premiums can exceed the payout | Savings keep growing |
| If you stop paying | Refunds based on cancellation terms | Policy usually lapses with nothing paid back | Money stays yours |
| Flexibility | Covers the included services only | Cash can be used for anything | Fully flexible |
| Money protection | FCA-regulated, FSCS-protected | FCA-regulated, FSCS-protected | FSCS protects eligible bank deposits up to £85,000 |
*Plan details based on the Memoria Direct Cremation Plan; terms vary between providers. Over-50s policy features vary between insurers; check any policy’s terms carefully.
“The most important question is: what will the people left behind need, and who is the funeral for? That conversation is missing in society.”
Steve Wallis, CEO, The Memoria Group
Why more people are choosing funeral plans over life insurance
For decades, over-50s life insurance was the default way to put money aside for a cremation or funeral, helped by adverts featuring familiar faces on daytime television. That has now changed.
In 2025, for the first time, funeral plan sales overtook over-50s life insurance sales: 206,837 funeral plans were sold against around 192,000 over-50s policies, which have fallen from a peak of 395,000 in 2011*.
Direct cremation plans are driving that shift, accounting for more than 65% of all funeral plan sales. FSE’s research into why people choose them found the two biggest motivations were making sure their personal wishes are known (83%) and keeping costs as low as possible (82%). A plan does both in a way a cash payout can’t: it records what you want and fixes what it costs.
Regulation has played a part too. Since 2022, funeral plan providers must be authorised and regulated by the Financial Conduct Authority, with customer money held in an independent trust or insurance policy and protected by the Financial Services Compensation Scheme. Meanwhile, the FCA has been scrutinising the over-50s insurance market, including the risk of people buying more cover than they need and losing everything when policies lapse.
If you’re weighing up a plan, our guides on whether a direct cremation plan is worth it and how much direct cremation costs will help you judge the numbers for yourself.
Which option is right for you?
That question is a better starting point than any comparison table. Once you know what the people ‘left behind’ will need, whether that’s everything taken care of, flexible money, or simply knowing your wishes, the right option tends to reveal itself. There’s no single right answer, but your circumstances usually point one way:
- A direct cremation plan tends to suit you best if you know you want a simple cremation, you want the price fixed and the arrangements taken off your family’s shoulders, and you can pay either upfront or comfortably over a number of years.
- Over-50s life insurance may suit you better if you can’t or don’t want to commit a lump sum, and you want to leave flexible cash behind rather than locking that cash in to pay for your funeral. Go in with your eyes open about lapsing and about premiums outlasting the payout.
- Saving may be right for you if you value flexibility above price certainty, you’re confident the money will stay put, and your family would be comfortable making the arrangements. Write your wishes down or talk to your loved ones about what you would like to happen when the time comes.
Some people sensibly combine options: a plan to fix the cremation itself, with some savings or a small policy on top for the send-off, since a plan covers the cremation but not a memorial or wake.
If a plan feels right, the Memoria Direct Cremation Plan costs £1,595 as a single payment, below the national provider average, and you can spread the cost over five years if you’re aged 40 to 79.
Whatever you’re weighing up, the most important thing is that the choice feels right for you and the people you love. There’s no wrong answer, only the one that brings your family the most comfort.
Questions about planning ahead? Call Memoria Direct Cremation free on 0800 007 3921, our friendly team is here to help.
Frequently asked questions
Is a funeral plan the same as funeral insurance?
No. There's no product officially called funeral insurance in the UK; people searching for it usually mean either a prepaid funeral plan or over-50s life insurance. A funeral plan is a funeral service paid for in advance at a fixed price. Over-50s life insurance is a policy that pays a cash sum when you die, which your family can put towards a funeral or anything else.
What does over-50s life insurance actually cover?
It pays a fixed cash sum when you die, usually after a waiting period of one to two years after you take out the policy (accidental death is often covered from the start). It doesn't arrange or pay for a funeral directly; the money goes to your estate or family, who then organise and pay for everything. The payout isn't linked to funeral costs, so there's no guarantee it will cover the funeral your family arranges.
How much over-50s life insurance would I need for a direct cremation?
Today, the average direct cremation plan from a national provider costs £1,736*, and a direct cremation plan with Memoria Direct Cremation today starts from £1,595. Be cautious about cover amounts based on headline average funeral costs, which can reflect far more elaborate funerals; buying more cover than you need means paying higher premiums for life.
Is over-50s life insurance worth it?
It depends what you want it for. As a way to leave some flexible cash behind with guaranteed acceptance, it can be worthwhile. As a way to pay specifically for a cremation, it has real weaknesses: the payout is fixed while costs rise, premiums can exceed the payout if you live a long time, and a lapsed policy usually returns nothing. If the funeral is the main goal, compare it carefully against a prepaid direct cremation plan.
What happens if I stop paying into each option?
With most over-50s policies, missed premiums mean the policy lapses and you get nothing back. With savings, the money simply stays yours. With the Memoria Direct Cremation Plan, if you cancel within two years of starting instalments you receive a full refund; after that a £95 cancellation fee applies.
Does a direct cremation plan cover everything?
It covers the services listed in the plan: with Memoria Direct Cremation, that includes collection anywhere in mainland UK, care of your loved one, a suitable sized coffin, all cremation fees, and hand delivery of the ashes. It doesn't cover things outside the plan, such as a memorial, wake, or flowers. Many families cover those separately or with savings.
Can my family access my savings quickly to pay for a funeral?
Usually, yes. Most banks will pay a funeral invoice directly from your account when shown the death certificate, even before probate is granted. However, this isn't guaranteed, policies vary between banks, and it adds a task to an already difficult time. If you're relying on savings, tell your family where the money is and check your bank's bereavement policy.
Can I combine a funeral plan with insurance or savings?
Yes, and many people do. A common approach is a direct cremation plan to fix the cost of the cremation itself, with savings or a small policy to cover a memorial or celebration of life afterwards. That way the essentials are locked in at today's price, and your family has flexible money for the personal send-off.
Related Content
More guides from Memoria Direct Cremation:Last reviewed: October 2026.
*Data sourced from the Funeral Solution Expert UK Funeral Plan Market Report 2026 (published May 2026).
Memoria Funerals is a trading name of Memoria Funeral Plans Limited and is authorised and regulated by the Financial Conduct Authority. View details on the Financial Services Register with firm reference (FRN) 965287.
