14 / 04 / 22
Top tips when looking to purchase a prepaid funeral plan
It’s thankfully a rare occasion that anybody has to think about planning a funeral. So if you’re unfamiliar with the options, then, just as you would when you buy anything from a washing machine to a holiday, consult friends or family, and research online either yourself, or ask a friend or relative to help.
Hang up if you receive any cold calls or unrequested sales calls.
The forthcoming Financial Conduct Authority (FCA) regulations which come into force on July 29, 2022, have been constructed to ensure the vulnerable or financially naive are protected. Part of that protection – which consumers should take into consideration now, even before regulation – includes the banning of cold calls, often by “third party resellers”.
Check the Financial Conduct Authority (FCA) website to confirm your potential prepaid provider’s status.
Check the FCA website to see if any company you choose to speak to is on there in the first instance. The FCA has a page with a list of the prepaid funeral plan providers operating in the UK. It is self-explanatory, and worth consulting. You’ll find it here: https://www.fca.org.uk/consumers/funeral-plans/providers-list#table
Don’t be afraid to be demanding of detail from any provider to whom you do speak. Ask if they’ve submitted their FCA application – it will be on the FCA website if they have.
Are their customers’ funds held in trust?
Ask if their fund is an independently managed trust, then ask for its name, and then research it. If customers’ funds are not held in trust by a prepaid funeral provider – or that provider ducks the question – then hang up. Your funds are at risk, as the saying goes.
What do existing customers say?
Look for client testimonials or social reviews (like TrustPilot) to get a clear view of what existing customers’ experiences are. There’ll be individual complaints, of course, but take the broader view: what is the overwhelming opinion of the majority?