Funeral plans How secure are funeral plans?

Funeral plans: is my money safe?

The Financial Conduct Authority (FCA) doesn’t regulate funeral plans covered by insurance or trust arrangements, but it does stipulate rules for each method of investment, so sums paid by the customer are safeguarded and available to pay for the funeral when needed.

Funeral Planning Authority

All the pre-paid plans we looked at are members of the Funeral Planning Authority (FPA), the industry’s professional body. It has a code of conduct by which registered providers must comply. 

The FPA also has a ‘pledge to customers’ for cases where a registered provider goes insolvent: the remaining providers and the FPA will examine ways to ensure that the funerals of that provider are carried out. However, it’s only at the discretion of the registered providers, so check with your provider what might happen in this situation.

Questions you should ask a potential provider include:

What happens if your chosen funeral director goes out of business?

What happens if the person the funeral is intended for dies abroad?

What happens if there are outstanding payments at death?

Visit the Funeral Planning Authority website for further details about the FPA.

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