A direct cremation plan lets you arrange and pay for a no-fuss cremation in advance, fixing today’s price for a service your family won’t have to organise or pay for when the time comes. But with direct cremation already the most affordable type of funeral, is it actually worth buying a plan? Or would you be better off paying at the time of need?
MoneySavingExpert (MSE) – founded by consumer champion Martin Lewis – addresses this in their guide to prepaid funeral plans. In this article, we look at what MSE says about direct cremation plans specifically, how plan pricing compares to at-need pricing, and how to decide which approach makes sense for you.
A direct cremation plan is a prepaid arrangement that covers an unattended cremation -no service, no mourners - at a price fixed at the time of purchase. MoneySavingExpert says funeral plans let you pay today's price even if costs rise.
A direct cremation plan is a prepaid funeral arrangement specifically for a direct (unattended) cremation. There’s no funeral service, no mourners, and no hearse, just the cremation itself, handled professionally and with dignity.
When you buy a plan, you pay a fixed price based on today’s costs. The provider guarantees to carry out the cremation when the time comes, regardless of how much prices may have risen in the meantime. Your money is held in an FCA-regulated trust or whole of life insurance policy, and if the provider were to go bust, you’re protected by the Financial Services Compensation Scheme (FSCS).
A direct cremation plan typically covers collection of the deceased, care before cremation, a simple coffin, the cremation fee, and return of ashes. What’s included varies by provider, which is why MoneySavingExpert advises making sure you understand what is and isn’t included before you buy.
MoneySavingExpert’s guide to prepaid funeral plans covers all plan types: Burial, cremation with a service, and direct cremation. Their advice on direct cremation plans specifically includes several key points:
MSE notes that direct cremations can cost less at the point of need than through a prepaid plan. This is because plan providers build in a margin to cover future cost increases, so the plan price will always be higher than the current at-need price. The question is whether that premium pays for itself over time as at-need prices rise.
MSE is clear that funeral plans offer the best value when paid as a lump sum or over a short interest-free period (usually up to 12 months). Longer payment terms often include interest or fees that can significantly increase the total amount you pay. MSE is particularly critical of plans that involve fixed monthly payments until age 90 or death, describing these as closer to over-50s life insurance than genuine funeral plans.
Not all direct cremation plans are equal. MSE advises checking whether cremation fees are fully guaranteed or subject to a capped “allowance” that your family may need to top up. Other things to look for include whether the plan covers collection from any location, ashes return or delivery, and what the cancellation terms are.
MoneySavingExpert’s guide includes a section on top direct cremation plan providers. Of those featured, Memoria Direct Cremation is the cheapest at £1,545 (an MSE-exclusive price; Memoria Direct Cremation’s standard plan price is £1,595). The plan covers all cremation fees, removal of medical devices, and hand delivery of ashes, three things that aren’t always included with other providers.
Based on MSE’s guidance and the cost data above, a direct cremation plan is most likely to be worthwhile if:
MSE is balanced on this point – a plan isn’t right for everyone. You might prefer to pay at the time of need if:
Neither option is better or worse. Some people find comfort in the familiarity and ritual of a traditional service. Others prefer the freedom and ease of a direct cremation, with space to plan a truly personal farewell later when it feels right, not when it has to be done.
MoneySavingExpert advises comparing plans carefully before buying. Here are the key things to check, applied specifically to direct cremation plans:
| What to Check | Why It Matters |
|---|---|
| FCA authorised? | Your money is protected by regulation and the FSCS. |
| Cremation fees guaranteed? | Some providers cap fees with an “allowance” – your family pays any shortfall. |
| Hand delivery of ashes? | Not all plans include this – you may have to collect from a crematorium, or pay an extra charge at the time of need. |
| Cancellation terms? | Check the cooling-off period and any fees. |
| Finance options? | Look for interest-free or low-cost options over a sensible term. |
| Own crematoriums? | Providers with their own sites control the full process. |
| Independent ratings? | Third-party ratings give you an unbiased quality indicator. |
MSE also features Memoria Direct Cremation’s plan alongside other providers in their guide, it’s the cheapest of those featured, and one of the few that includes hand delivery of ashes as standard.
MoneySavingExpert outlines several alternatives for people who decide a plan isn’t right for them:
Each option has trade-offs. A direct cremation plan offers the most certainty with a fixed price, no decisions for your family, and no risk of inflation eroding your savings. But MSE is right that what’s best depends on your own financial situation.
MoneySavingExpert’s overall message is to take the time to compare providers carefully, understand exactly what you’re paying for, and choose a plan that fits your financial circumstances.
The key things to look for are:
Whether you choose a direct cremation plan or decide to pay at the time of need, taking an informed approach can help provide reassurance and reduce uncertainty for both you and your family.
You can read the MoneySavingExpert guide to Prepaid Funeral Plans here
Last reviewed: May 2026.
Martin Lewis does not personally endorse any provider. MoneySavingExpert features several direct cremation plan providers in their guide. MSE encourages readers to compare options carefully and choose based on their own needs.
A plan fixes the price at today’s rate and pre-arranges everything so your family has nothing to organise or pay. Paying at the time of need means arranging and paying for the cremation after the death has occurred – typically at whatever the provider’s current price is. Memoria Direct Cremation’s at-need price starts at £1,195; the plan price is £1,595.
Yes. FCA regulations require a 30-day cooling-off period during which you can cancel for a full refund. After that, providers may charge a cancellation fee.
Funeral plans from FCA-authorised providers are covered by the Financial Services Compensation Scheme (FSCS). This means if your provider fails, you’re protected.
Funeral costs have risen 146% since 2004 (SunLife Cost of Dying Report 2026). Plan prices tend to follow the same trend. Buying a plan at today’s price locks in the current rate, which is one of the main reasons people choose to plan ahead.
Many providers offer instalment options. MoneySavingExpert advises paying upfront or within 12 months where possible to avoid interest charges.
MSE advises against using over-50s life insurance policies as a substitute for a funeral plan. These policies involve fixed monthly payments that often exceed the payout, and if you stop paying, you lose everything. A prepaid funeral plan, by contrast, is a one-off purchase that guarantees the funeral at a fixed price.
