Are prepaid funeral plans safe?

The short answer to the common question 'are prepaid funeral plans safe?' is yes.

Since July 2022, all UK funeral plan providers have been regulated by the Financial Conduct Authority (FCA), and Simplicity Cremations is authorised and regulated by the FCA. 

Will my money be safe in a funeral plan?

To make sure your money is safe in a funeral plan, you should only buy a plan from a provider authorised by the Financial Conduct Authority (FCA). It's against the law for a company to sell funeral plans in the UK without FCA authorisation, and you can check any provider on the FCA register.

FCA regulation means providers must be transparent about costs, treat customers fairly and safeguard the money paid into plans. Providers either place this money into a trust fund or a whole of life insurance policy.

The aim of both methods is to safeguard the money until it is needed, ensuring there are sufficient funds to cover the cost of the funeral when the time comes. This means that if anything happens to the provider, the money you pay for your funeral is protected.

The money you pay for a Simplicity Cremations funeral plan is held in a secure, independently managed trust, ring-fenced from our own finances, until it's needed.

You're also protected by the Financial Services Compensation Scheme (FSCS). If a regulated funeral plan provider ever went out of business, the FSCS may arrange a replacement plan or pay compensation.

Are prepaid funeral plans worth it?

If you're worried about leaving your family with funeral costs to cover, then yes funeral plans may be worth it. They offer peace of mind, meaning you'll have more time to live your life to the fullest. 

What does a prepaid funeral plan cover?

Exactly what is covered will vary from provider to provider, so it is important to research a plan thoroughly before deciding on the funeral plan that is right for you.

Unlike many cremation funeral plan providers, we guarantee to cover the following:

• 24/7 collection from the place of rest anywhere within mainland Great Britain

• Care in our professional mortuary facilities

• Cremation fees

• Transportation of the deceased

• A simple wood effect coffin

• Removal of a medical device, such as a pacemaker, if needed

• Hand delivery of the ashes, or scattering in our garden of remembrance

Our Essential Cremation Plan is a direct cremation without any mourners present, for £1,800 when paid in full.

If you'd like family and friends to be there, our Simple Celebration Plan, for £2,400 when paid in full, includes a 20-minute family-led service at the crematorium for up to 25 guests. Family can choose the date and time, with services before 10am or after 4:30pm, Monday to Friday (excluding bank holidays).

Prepaid funeral plans offer flexible payment options

Generally speaking, when it comes to prepaid funeral plan prices, the quicker you pay for your prepaid funeral plan, the less it will cost overall.

At Simplicity, you can choose to pay in a way that suits you and your budget.

You can make one single lump sum payment or pay via monthly instalments over 24 months, by credit or debit card. A £100 instalment fee applies if you spread the cost.

Anyone aged 18 or over can take out a plan, and there's no upper age limit, including for paying in instalments.

Are there any alternatives to a funeral plan?

One of the main advantages of a prepaid funeral plan, is that once you’ve bought a plan, you are protected against any future increases in funeral prices. There are however other ways to pay for your funeral.

Over 50s life insurance, also referred to as funeral insurance, will pay out a fixed sum towards the cost of your funeral. Within the industry, these insurance policies are considered poor value for money. Depending on the age at which you die, you could end up paying more in premiums than the fixed sum that will be paid out.

Many people put money aside in a savings account, however with the possibility funeral costs will continue to rise, there is of course no guarantee that you will have sufficient savings to cover the cost when the time comes.

Banks will usually release money from your estate early if your family can provide a copy of the death certificate along with an itemised account from a funeral provider.

For more information on our FPA regulated prepaid funeral plans or to arrange an affordable funeral for your loved ones, visit our funeral plans page or contact us today.