FREQUENTLY ASKED QUESTIONS
What is a funeral plan ?
How can I find a funeral plan provider so I can buy a funeral plan ?
What happens to the money I pay for a plan ?
What happens after I have paid for my funeral plan ?
Does the money paid cover all of the cost of the funeral ?
How does the funeral planning company know about the planholder's death ?
What is the role of the FPA?
What about funeral planning companies which are not registered with the FPA ?
How can I make a complaint against a funeral planning company ?
Can I discuss my requirements with the FPA ?
What is a funeral plan ?
In essence, a funeral plan is a contract under which one party to the contract (the plan provider) agrees to provide a funeral, as specified in the contract, for the other party to the contract (the customer) on the death of the customer.
The legislation defining a funeral plan is contained in Articles 59 & 60 of The Financial Services & Markets Act 2000 (Regulated Activities) Order 2001 – this is referred to as the “Regulated Activities Order” or the “RAO”.
In Article 59 of the RAO, a “provider” contracts with the customer (or planholder) to ensure that “another person”(referred to as a “designated funeral director”) agrees to perform the funeral of the planholder (or another specified person). The planholder pays for this by making one payment, or a series of instalments.
How can I find a funeral plan provider so I can buy a funeral plan ?
Funeral plans can be purchased directly from a funeral plan provider or through a funeral director connected to one of those funeral plan providers:
Buying direct from a funeral plan provider
To be able to buy a plan direct from a funeral plan provider you need to know who to contact. This website contains a list of funeral plan providers registered with the FPA (“Registered Providers”). The list is in alphabetic order but you may wish to look through the list and consider the summary of each company's activities.
Buying through a funeral director
You will probably know of a funeral director in your area who you could approach. You should find that most funeral directors sell plans offered by one of the Registered Providers but you may wish to check that is the case with the funeral director or by checking against the list of Registered Providers in this website. The documentation should also carry the FPA's logo.
What happens to the money I pay for a plan ?
In essence, FPA Registered Providers use the monies to purchase a whole of life insurance policy on the life of the planholder or place the monies in a trust.
Article 60 of the RAO excludes from the regulatory environment (that is, direct regulation by the Financial Services Authority) any funeral plan where the plan provider uses the money received either:
(a) to purchase a whole of life insurance policy (from a regulated life insurance company) on the planholder's life; or
(b) to pay into a trust under specified minimum conditions.
It is intended that the limitations placed on the use of the monies will ensure that the funds are secure. However, this Authority imposes additional Rules and a Code of Practice on its Registered Providers to provide additional protection for the consumer. To this end, the Authority has an independent Compliance Committee to check that the Authority’s requirements are met.
What happens after I have paid for my funeral plan ?
A “nominated funeral director” is allocated, either at the planholder's specific request or, failing such a request, by the funeral planning company. Payment for the plan is made (by lump sum or instalments) into a trust or towards a life insurance company. There is a period of time in which the planholder can cancel the contract and reclaim all monies paid. Once this period has elapsed, cancellation is still an option but a fee may be incurred. When death occurs, the nominated funeral director performs the funeral according to the terms of the plan and the trust or life insurance company pays the funeral director.
Does the money paid cover all of the cost of the funeral ?
It is important to read the terms and conditions of the plan you are considering to verify what is covered.
Frequently third party costs, known as disbursements, may not be covered in full as such costs are not within the control of a funeral director (eg medical fees , newspaper notices…) Consequently such a plan may contain an allowance against these costs and at the time of death if these costs exceed the allowance then some additional payment may be required.
How does the funeral planning company know about the planholder's death ?
It is essential that members of the planholder's family or executor are made aware that a funeral plan has been put in place. It is the responsibility of the planholder's executor or the responsible family member to immediately inform the funeral planning company of the planholder’s death.
What is the role of the FPA?
As previously referred to, the FPA imposes Rules and a Code of Practice on its registered providers which go beyond the requirements of the legislation. This adds additional security to the funds paid by the planholder. Furthermore, the FPA has an independent Compliance Committee which reviews information provided by Registered Providers to ensure they are complying with the legislation and with FPA requirements.
The Authority’s Code of Practice goes further than the legislation by imposing rules for conduct of business on registered providers. Providers who are not registered are not subject too such rules.
What about funeral planning companies which are not registered with the FPA ?
There is no obligation in law or regulation for a funeral planning company to be registered with the FPA provided the company complies with the RAO (previously referred to). However, you are advised to check the financial standing of any funeral planning company not registered with the FPA and ensure that their terms and conditions are acceptable to you. Registered providers agree to have their finances and procedures independently scrutinised by the Authority and further agree to operate within the terms of the Authority’s Code of Practice. Those plan providers not registered with the Authority have elected for whatever reason not to expose their operations to such transparency.
How can I make a complaint against a funeral planning company ?
Please see the section entitled Complaints against Registered Providers above.
Can I discuss my requirements with the FPA ?
The FPA is a regulatory authority and can provide you with contact details of its Registered Providers and with general information but is unable to provide any advice. The FPA can be contacted as follows:
Telephone 0845-6019619
Email ceo@funeralplanningauthority.co.uk
Post Knellstone House, Udimore, Rye, East Sussex, TN31 6AR