My mum took out a funeral plan. She paid £80 up front then £50/month for 2 years. When she died they said there was a shortfall of £2800. I could pay it or cancel the policy. I would get £600 refund minus £395 cancellation fee. I agreed to pay the shortfall expects £5500. Imagine my shock when they gave the undertaker just £2830! Basically all if her payments yielded just £30.
I think it's disgraceful. She wanted to avoid me having this worry. I'm awaiting probate so no access to her money. Luckily I had saved some so I could afford the funeral until the funds are released. She wanted burial which cost £12000 including burial plot But this didn't exclude the catering, flowers, printing etc.
She had a great send off and I don't resent the money but it was a shock when I heard the amount.
I think it's better value to pay an undertaker up front and leave instructions.