Continuing low interest rates have resulted in an increase in customers investing in pre-paid funerals as they attempt to make their money go further and spare their loved ones from financial misery in the event of their deaths.

The news comes from the Heart of England Co-operative Society Funeral Division which has reported sales increased by 39 per cent on the same period last year - a period which also recorded strong sales.

On a national scale figures from the Funeral Planning Authority - the self regulatory body established to protect consumers' interests when they take out a pre-paid plan - show providers recorded 46,340 sales when it was first set up in 2002. That number showed a strong increase year on year and by 2009 it had almost doubled to 91,335 plans.

Darryl Smith, General Manager of the Heart of England Co-operative Society's Funeral Division, said low interest rates were possibly a key factor in encouraging people to look ahead in a bid to spare their loved ones from further heartache in the event of their death. He said with savings earning next to nothing consumers are looking for better returns by switching their money into pre-paid schemes as they prepare for the inevitable.

Mr Smith, who heads a network of 10 funeral homes across Coventry, Warwickshire, south Leicestershire and Northamptonshire, said by taking-out pre-paid funeral plans families were saving themselves from further heartache and debt stress.

Mr Smith said: "There is a Social Fund funeral grant scheme operated by the government for families who cannot afford funeral costs for their loved ones. But the average payout under this scheme is about £700 which is woefully inadequate when you take into account the steep rises in some funeral costs such as crematoriums and third party service providers.

"This is because the fixed sum from the Department of Work and Pensions has not increased once in the last five years and is therefore out of step with rising costs."

He added: "Here at the Society we do come into contact with people debt ridden for years following the death of a loved one. Pre-paid funerals are one of the best ways to prevent this stress as it also allows families to pay in advance at current prices."

Mr Smith added: "A great many people prepare for their future by taking out pensions, life insurance and so on, pre-paid funeral plans can offer the same type of security specifically tailored around a clients wishes.