Prepaid Funeral Plans

Brambling

I helped a elderly friend set one up with a small local family company, they have been around for 150+ years but I did check there was protection in place should they suddenly go bust.  She has no intention of moving from the town so it suits her and they do have an excellent reputation.  

hb2

My mother took out a plan with AgeUK/Dignity several decades ago and we had no problem using it when needed 3 years ago. In fact, we have taken out a similar plan ourselves (also with Dignity) as we were happy with the service we received.

luvchocolate

My parents had pre paid with coop and i had no problems with them. 
I have now paid for mine also

w0nKy

I took out funeral plans for both of my parents with the co-op as they both developed Alzheimer’s some time apart and I considered it wise to take out funeral plans before there monies dropped to £23,500 and the council would step in.
Both Services were absolutely fine. My father who passed away this year with COVID infection could not benefit from all of the service on his plan due to various restrictions.

The Co-op Informed me of this at the time of planning my fathers funeral and after the service contacted me again to ask where the refund for the services not provided should be sent without me having to contact them first.
Overall I was pleased with the services we received, although I am sure there could be regional variations in services.

sheramber

I had a Golden Charter plan. Although it was in my name I was able to use it for my husband's funeral with just a simple phone call. 
It was stated when I took it out that it could be used for him if he died first.

acorn8

Thank you for all the replies.  I am a bit more confident about buying a plan now.

hb2

sheramber said:

I had a Golden Charter plan. Although it was in my name I was able to use it for my husband's funeral with just a simple phone call. 
It was stated when I took it out that it could be used for him if he died first.

We paid a single extra fee (only in the 10s of £) when we took out ours so that it can be used for whichever of us goes first. 

Tappers

There really are some misunderstandings in these comments and if you're buying a funeral plan you need to ask some questions.
Do you know how much is being paid in fees and commissions from the amount you're paying for a plan? £500? £1,000? How about up to £1,600? Yes, that's correct. And that happens with some of the main providers that are mentioned in this thread, including FPA (Funeral Planning Authority) providers. 
How about understanding how much a funeral director might get offered for the plan you've bought, you may be shocked.
The best place to but a funeral plan is from an INDEPENDENT funeral director, and even that make sure you ask the questions about the provider they're using, they don't always know.

Independent_Dave

The Pre-Paid Funeral Plan Market is an absolute minefield.  There are some good companies out there but the lack of proper regulation makes for some very unethical business practices by the majority of internet only providers.  Never, ever buy a plan from a funeral plan website, you will almost always pay more than you need to.  The best place to buy a funeral plan is from an independent  funeral director.  They will guide you through the choices, include only what you need and give you the best advice on your local facilities and services.  The Finance Act compels them to place your money with their chosen funeral plan provider so your money will always be as safe, if they go out of business you won't loose your money.

Check on cancellation fees - nearly all online providers will charge you a fee ranging from a couple of hundred pounds to half the plan price (outrageous!)  Only one I know of doesn't charge an additional cancellation fee, 'Open Prepaid Funerals.'

The biggy, administration fees!  ALL online website plan sellers take administration fees for what they do, you would expect that.  What you don't know, and what they won't tell you is how much they take.  They are not obliged to tell you because at the moment funeral plans are not regulated by the FCA.  Yes there is very light touch regulation with the Finance Act but it's not enough to properly control what happens to your money.  Nearly all providers use a Trust based plan so your money goes into a managed trust fund.  However there are absolutely no rules around what that trust can do with your money.  The good companies invest it wisely to pay for your eventual funeral.  The less scrupulous ones use our money to pay commissions to third party sellers, pay huge trustee fees and I've even seen evidence of companies buying their own buildings with trust money.  Remember your money is supposed to be used to pay for your eventual funeral.   
Let me give you an example.  Rest Assured Funeral Plans -   The Oak Plan is advertised on their website at £3599.  This plan will be offered to a funeral director to carry out the plan at £2200.  That means their administration fee is £1399!  Acceptable?
What makes this worse is that in 5, 10, 20 years time when your family needs that plan to pay for your funeral, there probably won't be enough in the pot.  Your family will almost certainly have to pay more money at the time.

Funeral plans are a good thing, they remove the financial and emotional burden at the time of need.  But please, if you are going to buy one, don't do it online, Google your nearest independent funeral directors, pick up the phone, have a conversation and buy in confidence.   

sheramber

My local funeral director use  Golden Charter Plans. No doubt  they get commission.