A pre-paid funeral plan lets you pay for some funeral costs such as the services of a funeral director to arrange the funeral and take care of the deceased. Since July 2022, all pre-paid funeral plans are regulated by the Financial Conduct Authority (FCA). If you have a pre-paid funeral plan, you can use this guide to help you understand your rights and find out if your plan is FCA authorised.
How do I know I have a pre-paid funeral plan?
Funeral plans cover the specific costs of arranging and paying for either a burial or a cremation. You may have taken one out because you don’t want your loved ones to worry about managing and paying for a funeral at such a difficult time.
You will already have paid for some of it in advance, either through a lump sum or instalments.
But even the best plans won’t cover all the costs and there’s a risk that your relatives or friends may need to find extra money on top of what the plan pays out.
If you’ve taken out a pre-paid funeral plan, keep the paperwork in a safe place and make sure your next of kin know about it. This is so they know the plan exists and what type of funeral you want.
How do the rules protect me?
If you have a pre-paid funeral plan, your provider must be registered with the FCA and authorised to administer your plan.
All providers must follow certain rules which include making sure your money is looked after and used responsibly.
You also have the right to:
- Complain to the Financial Ombudsman Service (FOS)Opens in a new window if you’re not happy with the way you've been treated. It’s a free and easy to use service that resolves disputes fairly and impartially and has the power to put things right. If the issue you want to complain about happened before 29 July 2022, you can still get in touch with the Ombudsman as they may be able to help with your complaint.
- Access the financial protection offered by the Financial Services Compensation Scheme (the FSCS)Opens in a new window This means if the funeral provider goes bust, you’ll be able to claim compensation for your financial loss.
- Get the service you paid for. For example, funeral instalment plan products will always deliver a funeral as the FCA will be banning those that don’t guarantee this.
Check if your pre-paid funeral plan is regulated by the FCA
You can check if your provider is authorised on the FCA websiteOpens in a new window
Watch out
Beware of fraudsters pretending to be from firms authorised by the FCA, as they could be 'clone firms'. If you're cold-called by a financial services firm, always ring them back on the number given on the FCA Register.
Find out more about protecting yourself from cold calls and scams in our guide Types of scam
There are many ways to plan and pay for your funeral, for a list of your options to help you decide what’s best for you read our guide Over 50s life insurance – is it worth it?
What to do if your pre-paid funeral plan provider becomes insolvent
You will be transferred to a new provider which may offer you a replacement plan for an additional cost or it may be on different terms and conditions.
You have the right to reject the new offer and receive some money back from the insolvency, but it is likely to be less than the original amount you paid for your funeral plan.