The Funeral Planning Authority (FPA) is the only organisation which regulates prepaid funeral plans in the United Kingdom. With an extensive network of contacts and boasting a far reach in the funeral industry, the FPA has grown into a trusted recourse for customers. As someone considering purchasing a funeral plan, consulting the advice given by the FPA is absolutely essential. In this post, we take a look at the basic information provided by the Funeral Planning Authority as to what it considers to be a funeral plan. In forthcoming articles, we will look at some of the most common questions posed to the FPA, to help inform your selection of a funeral plan.
How do funeral plans work?
According to the FPA, funeral plans are defined as a product which allow you to choose and agree arrangements for a funeral in advance. This can be for yourself, or for someone else. The key financial benefit of funeral plans is that they allow you to fix the cost of the funeral, protecting against rising costs caused by inflation. Prepaid funeral plans can be paid for in a lump sum, or instalments.
The Funeral Planning Authority advises that, as the customer, you should read the terms and conditions of the plan thoroughly. When considering a plan, you can discuss the details of your desired plan with the provider. Thereafter, you should only sign the agreement once you are completed happy with the service you are being offered.
The rules and regulations governing prepaid funeral plans require providers to set aside your money, in either a whole life policy or a trust. Thus, the money you have paid towards your funeral expenses will remain separate from company providing you the funeral plan. For funeral plan providers who are members of the FPA, the FPA ensures that these arrangements are in place, thereby guaranteeing the money is in place when needed for a funeral.