A funeral plan is a way of paying for your funeral in advance. The main benefits of this are that it removes the burden of arranging and paying for a funeral on those left behind. It also allows you to pay for sone parts of a funeral at today’s prices rather than the higher prices being charged in the future.
For many years now in the UK, it has been illegal for a funeral director to hold the funds for a funeral of someone who is still living. These funds have to be placed in either an insurance policy or a trust. As a result, many specialist funeral planning companies exist to administer the funds placed in a trust or insurance policy. Such companies have to be approved by the FCA (Financial Conduct Authority).
The funeral planning company will invest the funds to provide a return which increases the value of the funeral plan in order to ensure that it covers the increased cost of a funeral when you die. At the point of death, the funeral director will liaise with the funeral planning company for payment. Any services or products not included in the plan will have to be paid for by the person responsible for the funeral.
For more information visit: jaynepriorfunerals.co.uk/funeral-plans
