Prepaid Funeral Plan¶
A prepaid funeral plan is a contract under which the customer pays a lump sum or instalments during their lifetime, in exchange for the provider's promise to pay for and arrange a defined funeral when the customer dies. The plan typically covers the funeral director's fees, a coffin, the cremation or burial fee, and a hearse; what it covers above that varies by provider and plan tier.
FCA regulation since 29 July 2022. The Financial Conduct Authority took over regulation of prepaid funeral plans on 29 July 2022. From that date, every UK provider must hold an FCA authorisation; selling unauthorised plans is a criminal offence. The FCA Register at register.fca.org.uk lists all authorised providers. [source: fca/funeral-plans-2026-04-30.html]
FCA-authorised plans carry consumer protections that did not exist before 2022:
- A 30-day cooling-off period with full refund on cancellation, no reason required.
- A mandatory full-refund alternative if the customer dies within 2 years of taking the plan out — providers must offer this option in place of the funeral itself.
- Cover by the Financial Services Compensation Scheme (FSCS) if the provider fails: the FSCS will either arrange a replacement plan with another authorised provider or pay compensation equivalent to the cost of a replacement at current market prices.
- Recourse to the Financial Ombudsman Service for unresolved complaints, free to the consumer. [source: fca/funeral-plans-2026-04-30.html]
Plans bought before 29 July 2022 were not regulated and carry none of the above protections. Where the customer is still alive, the plan should have transitioned to an FCA-authorised provider during the 2022 transition; if it did not, the consumer was offered a refund. Where the customer has since died and the plan was held with a provider that failed before regulation took effect (the most-cited example being Safe Hands Plans), the plan is not covered by the FSCS and recovery has been a matter of individual creditor claims.
Third-party costs are the most common gap. Plans split costs into the funeral director's own charges (fixed by contract, usually inflation-protected) and disbursements — third-party fees paid to crematoria, churches, and burial grounds. Some plans guarantee disbursements; others only estimate them. Where they are estimated, the family is liable for any shortfall when the actual fees come in. The FCA requires clear disclosure of which costs are guaranteed; reading this section of the plan documentation is the single most useful pre-purchase check.
After the customer dies. The family or executor contacts the plan provider with a copy of the death certificate. The provider arranges the funeral with its appointed funeral director, or with a funeral director nominated at purchase, and pays the covered costs directly. The family pays only for items outside the plan (a wake, a memorial, additional flowers) and any disbursement shortfall.
AfterLoss¶
See how AfterLoss handles funeral wishes for where to record an existing prepaid plan so the family can find it after the death.
Last verified: 30 April 2026 against fca.org.uk/consumers/funeral-plans.