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
We have only looked at pre-paid plans that 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.
- Writing a will? Take a look at our expert guide
- Read our guide to setting up power of attorney
- For a solution tailored to your needs, call our experts on the Which? Money Helpline
Which? Limited (registered in England and Wales number 00677665) is an Introducer Appointed Representative of Which? Financial Services Limited (registered in England and Wales number 07239342). Which? Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Registered office: 2 Marylebone Road, London NW1 4DF.