Royal London has launched a new pre-paid funeral plan.
The Traditional Funeral Plan covers the costs of funeral director fees, a coffin, funeral service, limousine and cremation or burial costs.
Royal London said the product was launched in response to the soaring cost of funerals in the UK – now at an average of £3,784. It said the plan, which is partnered with Ecclesiastical Planning Services, could help protect against the risk of further cost increase.
Louise Eaton Terry, funeral cost expert at Royal London, said: "At a time of mourning, the last thing anyone needs is money worries. Our new funeral plan can help people be prepared for the inevitable without having to leave their loved ones struggling with the cost."
The plan is covered under the Financial Services Compensation Scheme with premiums starting from £29 a month. It also offers the option of a payment holiday if customers are unable to make their monthly repayments, as well as choices to upgrade or add additional elements such as a wake or headstone.
An Alternative Cremation Plan will offer a lower cost direct cremation option from £16 a month.
The plan has been awarded a five-star rating from consumer group Fairer Finance,
James Daley, founder of Fairer Finance, said: "Funerals can be a very expensive event and it is easy to fall into the trap of paying too much at a time when you mind is on other things, but there are ways to reduce costs."
Claire Walsh, chartered financial planner at Aspect 8 said: "Given the potentially long-term nature of a product like this, having the protection of the FSCS gives much greater peace of mind, which is exactly what someone taking out a funeral plan wants."